Sun West unveils NFT loans powered by AI technology

Loan originator and processor Sun West Mortgage Co. Inc. has unveiled the latest version of its proprietary artificial intelligence (AI) platform, called Morgan, which enables the lender to convert pre-approved property-specific mortgages into tradable non-fungible tokens (NFTs).

NFT is asset agnostic, backed by real dollars and guaranteed by Sun West, which is one of the largest non-bank mortgage companies in the country, licensed in 48 states with a network of around 80 retail branches. That puts home buyers who hold NFTs in the position of making a cash offer to a home seller, according to the Buena Park, Calif.-based lender.

The blockchain-based Morgan AI platform uses Sun West’s TRU Approval lending platform and is operated by its fintech sister company, Cell type.

“What we traditionally call a home buyer is now a seller of their unique, credit-eligible non-fungible token (NFT),” said Sun West CEO Pavan Agarwal. “If the trade value (the price of the home) is accepted and accepted by the NFT seller and the property owner, the transaction is registered openly.

“To ensure that the NFT is traded as agreed, the NFT seller (home buyer) has two choices. They can terminate the transaction and transfer the NFT, or if they choose not to honor the trade, they lose their earnest money deposit, as is common in all standard property purchases. »

The approach creates wider opportunities for both buyers and sellers, giving both parties in the home sale the opportunity to “present and accept offers with certainty and without unconditional financing conditions,” the lender’s announcement of the new NFT loan states.

Sun West has been testing Morgan’s real-world performance since its recent soft launch. Morgan has reviewed and resolved within two hours about 99% of the thousands of daily loan terms presented to Sun West, according to the lender. In addition, Sun West said more than 30% of loan terms were reviewed within 30 minutes.

“The result is a 100% success rate in properly underwritten and underwritten Tru approval loans,” states Sun West in announcing the launch of the NFT product.

“Since its founding in 1980, the landscape has [through] how we get a mortgage has changed,” Agarwal said. “The multi-trillion dollar real estate market is based on countless one-off person-to-person transactions.

“It was once wonderfully simple, but over the last few decades it has become unnecessarily complex. The invention and mass adoption of blockchain-based technology has given us a new opportunity to streamline this process, and Morgan is designed to redefine the way we trades property on, while at the same time simplifying and correcting this over-complication.”