James Y. Kuang Realtor Blog Real Estate San Gabriel Valley Homes For Sale: August 2018

Tuesday, August 28, 2018

3 Biggest Blockchain Myths Debunked

Despite its speed in verifying records and heightened online security, real estate professionals have been slow to adopt blockchain.

Natalia Karayaneva, CEO of Propy, a real estate marketplace that uses blockchain to facilitate transactions based in San Francisco, says there are a lot of misconceptions about the new technology. She’s debunking three perceived risks.

Myth 1: Blockchain isn’t as secure as we think.

Karayaneva says blockchains such as ethereum or bitcoin have never been hacked. The Decentralized Autonomous Organization (known as the DAO) and exchanges have been hacked, but the blockchain ledgers cannot be hacked because they will reject any record with altered data, she says.

Myth 2: Blockchain is a hotbed of illegal activity.

“Yes, criminals can use the blockchain for illegal activities. Criminals can also use highways to carry drugs, but no one is calling highways ‘hotbeds of illegal activity,’ because regular people use them to perform legal, necessary tasks,” Karayaneva says. “In the same way, the use of blockchain for legitimate purposes renders it irreplaceable.”

Myth 3: Blockchain is simply for trading cryptocurrency.

Because blockchains prevent errors in record-keeping and accelerate transactions by eliminating third-party verifications, Karayaneva says that the technology can enhance nearly any industry.

SOURCE: DAILY REAL ESTATE NEWS

Any questions or comments, feel free to contact James Y. Kuang at (626) 371-5662 or by email: james.kuang@coldwellbanker.com

$10,000 Cash Savings Guarantee! - VIP Buyer Program: www.VIPBuyingToday.com

Limited Time VIP Buyer Bonuses:

BONUS#1: One year home warranty policy ($497 value)

BONUS#2: Lifetime notary service (in office)

BONUS#3: Financial Impact Analysis

www.EasyHomeResource.com

www.facebook.com/JamesYKuang

Wednesday, August 15, 2018

Why Clients May Be Asked to Write a ‘Comfort Letter’ to Their Lender

When an insurance company's underwriting department has questions about a borrower’s background, it's becoming common to ask the borrower to write a letter of explanation to their lender, dubbed a “comfort letter.” The lender may request a letter to gain clarity on the borrower’s circumstances that were not explained in their credit or employment documentation.

“We try to connect the dots using data, and we think that makes the application process more robust,” Bill Banfield, executive vice president of capital markets for Quicken Loans, told The Wall Street Journal. “But when you need a little help from the client to connect those dots, letters of explanation are a way to help the underwriter interpret something.”

When would a client be asked to write one? The Wall Street Journal offers up some scenarios, such as a borrower who wants to buy a new home far away from their current place of employment. The lender may ask the borrower to explain, like if they intending to telecommute or has a new job. The bank may also request one if the borrower makes an unusual large deposit. They may ask for a letter to document where the funds came from. A lender may also ask for an explanation if there was a gap within employment.

“It could be as simple as somebody had a child, and they left the workplace for a period of time,” Banfield told The Wall Street Journal . “What the underwriter is trying to get at is the stability and continuity of the income they’re using to qualify the client to ensure that they can actually afford the payments.”

For lenders who do ask for a letter, banks tell borrowers not to panic. It’s a common part of the mortgage-application process these days. This does not mean there is a problem with the application or that it will be denied. In the letter, WSJ advises making sure the borrower fully understands the question and addresses the underwriter’s concern with concise and accurate information when requested.

Banks, however, are not permitted by law to ask borrowers anything that is “prohibited bias,” like on medical privacy, gender, age, religious, or racial discrimination, says Allen White, senior vice president of mortgage lending at South State Bank in Seneca, S.C.