Mortgages on the Blockchain
Did you know that it currently takes and average of 42 days from submitting your home loan application to reaching settlement?At each point, you’re dealing with professionals like mortgage brokers, bank officers, solicitors and real estate agents, each adding their own time and fees to the home loan process.Although many of them are offering advice and information, these professionals are also stuck completing administration tasks that could be completed by a computer.
For example, banks need to check your asset-to-debt ratio, while conveyancers need to complete a title search and transfer ownership of the property.What this leaves you with is a long and drawn-out process.Of course, the checks and balances required to get your application assessed, such as checking your ID and credit history, are necessary.But with all of this information already available on secure online databases, why are you left paying the fees of our archaic banking and regulatory system?
Ordinarily, with the traditional mortgaging system, it is usually a herculean task trying to get mortgage loans for properties, and this has caused some form of friction between the institutions that control the mortgage industry and consumers. Furthermore, it seems like mortgages/loans were made for only the rich, as it always seems like they always have easy access to loans. People who really need loans typically don’t get the terms they want or need, and people who would get those terms, don’t need a loan.
Blockchain technology is simply a list of records linked together and “encrypted” or secured so that they’re only accessible to authorised parties.Currently, private information such as bank accounts and government records such as property titles, are held by private and public institutions.Authorised individuals such as mortgage brokers and bank managers need to access this information manually when assessing your eligibility to meet the bank’s lending policy as well as your borrowing power.
Similarly, this private and public information needs to be updated when you’re actually approved for your mortgage, its registered with your bank and when you actually become the new owner of land and property.Each time information is exchanged or a transaction takes place, it moves between “ledgers” and someone needs to confirm each move (third party intermediaries).
With blockchain mortgages, the information or data required to assess and approve your loan application would be securely stored on a network where these ledgers would be updated automatically and in real-time.The use of this distributed ledger technology (DLT) technology would allow your loan contract to be generated automatically, set up your home loan account and transfer and register ownership of the property.
One of the major challenges plaguing the industry is a lack of transparency, and blockchain (also known as distributed-ledger technology or DLT) decentralizes the current mortgage model, and hence, decentralizes how transaction information/records are stored. With a decentralized system, lenders and companies are stripped of the power to manipulate data/information, or get involved in fraudulent activities with data. The information is shared across the entire blockchain network pseudo-anonymously, without a central figure interfering or supervising the processes. Every transaction that takes place on the blockchain network, becomes a public record, stored in a public ledger — and cannot be altered or tampered with. Blockchain technology, once realized, will be a big deal for homebuyers.Imagine a mortgage approval that you could carry around in your wallet or on your smartphone, updated in real time, that you could pull out and use to buy a house as quickly as you purchase a car today.
Block66 is on a mission to shake up the mortgage lending landscape by building the world’s first blockchain enabled mortgage lending network. The network will eventually seek to span borders, connecting private and institutional lenders with borrowers worldwide. All mortgages will be issued and managed on the blockchain. B66 is a limited supply token that when stored in a special smart contract generates the network’s native token – BNET, that is then sold via the platform to network users (i.e mortgage brokers). The revenues generated by the sale are distributed to BNET holders.
The decentralised Block66 platform leverages blockchain technology. The platform matches borrowers looking for mortgage with lenders, helps reduce mortgage fraud and allows for mortgages to be issued on the blockchain helping to cross borders and support blockchain only property purchases.
For more information please visit links:
Website : https://block66.io/
Telegram : https://t.me/block66_Official
Bounty0x : @kukiloaji