Ginnie Mae will be introducing blockchain and distributed ledger technology (DLT) to its processes. The company’s innovation lab is leading the effort and joined with the U.S. Federal Housing Blockchain Network (HBN).
“The current housing finance system remain paper intensive and reliant on processes that were developed decades ago,” Ginnie Mae stated. “The blockchain network will serve as a central gathering point for government innovators, technical and non-technical, interested in improving mortgage and mortgage securitization processes for mortgage-backed securities (MBS).”
The HBN uses symposiums, virtual lunch and learns, blockchain ecosystem alliances, and idea campaigns on a crowdsourced idea platform to spread awareness about blockchain and provide education on how blockchain and DLT may benefit U.S. housing finance and homeownership.
Ginnie Mae is staying in close communication with the private sector to uncover innovative concepts, methods, technologies, and tools to evolve the mortgage lifecycle. Launching blockchain and joining with the HBN are the company’s most recent efforts to deploy technologies that modernize the mortgage process. Ginnie Mae settled more than $2.1 billion of digital MBS in 2021 and is expecting more volume in the coming year as it opens up participation to additional users.