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» VISIT US ONLINE @ DSNEWS.COM 105 title company's website or server. Anytime anyone at the title company updates the file, the lender will always be able to see the most current document via the link. is sounds great in theory, but the fact is that this second model is as problematic as the first when it comes to trusting the reliability of the information. If the lender opens the file via the link today and works off of it, then closes it, and opens it up tomorrow, it might not be the same document tomorrow. With no alert or notification when the document has been altered, the lender has no way of knowing when someone is changing the file at the title company. Choosing either of these models for document collaboration is a bit like building a house on sand. In short, the lender has to select between two bad choices. Option 3: Blockchain Collaboration It's clearly time for a paradigm change in how businesses approach document collabora- tion. is is particularly true for transactions like mortgages, which have inherent risk given the necessary continued collaboration of mul- tiple parties over a period of months and years. A breakthrough technology already exists that allows collaborative teams to experience the benefits of each model above without the flaws of either one. at technology is called blockchain. Here's how it works: Using a blockchain document validation service, the title company registers its title commitment and shares this document via a blockchain entry. e lender then accesses the document via blockchain document systems. rough the blockchain technology, the title company records a digital proof of the document to ensure the document is never altered. e digital proof acts like a digital fingerprint, creating a tamper-proof seal on the blockchain. Any changed versions of the document are automatically registered as new versions on the blockchain, and all parties are notified. In short, blockchain technology brings an uneditable, virtually unhackable, neutral third party to the collaboration for the added valida- tion, confidence, and confidentiality required in sensitive transactions. Laurie Pyle is EVP of Austin, Texas-based Factom, a blockchain-as-a-service company that created the mortgage industry's first practical blockchain technology solution—Factom Har- mony. Previously, Pyle was Managing Director at Corsair Associates and worked with technology companies in the mortgage and financial services industry. She also served as EVP/CIO for Stewart Lender Services. DS News is the only publication in the country solely dedicated to providing default servicing professionals with news and content focused on their industry. SUBSCRIBE TO THE LEADER IN DEFAULT SERVICING NEWS SUBSCRIBE NOW! Call 214.525.6700 or connect with us online at DSNews.com.