RT Journal Article SR Electronic T1 Representation and Warranty Enforcement: Using Blockchain Technology to Improve the Investor Experience JF The Journal of Structured Finance FD Institutional Investor Journals SP 83 OP 87 DO 10.3905/jsf.2020.1.104 VO 26 IS 2 A1 Patrick J. Tadie A1 Joseph Deller YR 2020 UL https://pm-research.com/content/26/2/83.abstract AB 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• Enforcement of R&Ws has been a huge, time-consuming, costly, acrimonious, and investor-unfriendly process.• Wilmington Trust proposes to utilize blockchain technology to centralize the process, improve the time frames dramatically, and remove the issues listed above.• 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.