Los Angeles-based Sun West Mortgage Company (SWMC) has deployed a new version of its blockchain real estate platform, Morgan.
According to the company, Morgan’s AI technology converts a pre-approved property-specific loan to a “property agnostic tradable” non-fungible token (NFT). The token is backed by real dollars and guaranteed by Sun West. The lender claims that this approach gives buyers and sellers the chance to present and accept all-cash offers “with certainty and without open-ended financing contingencies.”
Sun West Mortgage CEO Pavan Agarwal further explained: “What we traditionally call a homebuyer is now a seller of their unique credit qualified non-fungible token. If the trade value (the price of the home) is accepted and agreed to by the NFT seller and property owner, the transaction is openly recorded. To ensure the NFT is traded as agreed, the NFT seller (homebuyer) has two choices – they may close the transaction and transfer the NFT, or if they choose not to honor the trade, they forfeit their earnest money deposit, as customary in any standard real estate purchase.”