@article {Tadie83, author = {Patrick J. Tadie and Joseph Deller}, title = {Representation and Warranty Enforcement: Using Blockchain Technology to Improve the Investor Experience}, volume = {26}, number = {2}, pages = {83--87}, year = {2020}, doi = {10.3905/jsf.2020.1.104}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Wilmington Trust is proposing to utilize blockchain technology to enhance the process of enforcing the implementation of representations and warranties (R\&Ws). In the past, the R\&W enforcement process has taken months, if not years, to get to a proposed solution, and even then, there has been much difficulty in getting to an agreement on how best to enforce R\&Ws. The blockchain technology will enhance the speed and accuracy of the process, thus solving a problem that has vexed the investor community that buys mortgage products.By utilizing blockchain technology, Wilmington Trust proposes to do the following:1. Centralize all documentation in one system, including the documents related to R\&Ws at time of origination, at time of servicing, and for the life of the servicing, as well as the supporting documents needed to make a decision.2. Speed up identification of issues related to non-compliance with R\&Ws.3. Arrive at decision resolutions in days instead of the current months/years-long process that is often accompanied by disagreements, disputes, and lawsuits.TOPICS: Legal and regulatory issues for structured finance, MBS and residential mortgage loansKey Findings{\textbullet} Enforcement of R\&Ws has been a huge, time-consuming, costly, acrimonious, and investor-unfriendly process.{\textbullet} Wilmington Trust proposes to utilize blockchain technology to centralize the process, improve the time frames dramatically, and remove the issues listed above.{\textbullet} Investors have expressed strong interest, hoping to remove impediments to a more efficient, fair, and balanced process that ensures adherence to the R\&Ws of both origination and servicing of loans they purchase.}, issn = {1551-9783}, URL = {https://jsf.pm-research.com/content/26/2/83}, eprint = {https://jsf.pm-research.com/content/26/2/83.full.pdf}, journal = {The Journal of Structured Finance} }