The non-GSE lending market faces mounting challenges that demand innovative solutions. Traditional processes, dominated by manual workflows and one-off agreements, create significant friction that limits liquidity and scalability. For originators, these inefficiencies result in subscale operations and limited balance sheet capacity, while investors struggle with opaque transactions and lengthy settlement times.
The industry stands at a critical juncture as new pressures emerge, from regional bank consolidation to stricter regulatory requirements under Basel III. However, blockchain technology is emerging as a transformative force, offering the potential to standardize processes, reduce settlement times from months to days, and create a more transparent marketplace for all participants.
Why the Current Market Needs Innovation:
- Rising costs and regulatory pressures squeezing margins
- Manual, paper-based processes slowing down transactions
- Limited liquidity options for smaller originators
- Lack of standardization increasing complexity
- Growing need to serve evolving borrower demographics