The mortgage lending industry is one of the remaining significant sectors that has opposed the steady walk-in technology and innovation. In spite of the banks' stranglehold on the industry, the most recent of blockchain technology has the potential to knock them from their perch. Economic rent-seeking behavior (this is an economic activity dedicated to expanding your share of existing value instead of creating value.), with banks exposing themselves to positive asymmetric risks only, cannot survive the long-term. It is inevitable that evolutionarily fit systems will jump up to rebalance the dangers born by all parties involved in the process. This has therefore resulted to problems which are now being faced by the market, these problems are stated below;
1.The financial crisis has led to the tightening of lending criteria by traditional mortgage lenders. These restrictions have also limited lending for borrowers who were beforehand serviced by the traditional funding providers.
2.The packaging up of thousands of mortgage loans into securities by the Mortgage-backed securities and Collateralized Debt Obligations to be sold in bulk has permitted the originating bank to offer their exposure on mortgages loans early in a loan’s lifecycle, thereby limiting their exposure long term and reducing the incentive to appropriately evaluate loans at the outset.
3.The mortgage credit has tightened for households unfit to meet standard underwriting criteria.
4.The U.S. alone gave a market of more than 106M borrowers in 2017 with reasonable or more credit scores, not adequately serviced by the traditional mortgage lenders.
5.Aside from more tightly mortgage criteria, the nature of work itself is likewise changing with fewer borrowers meeting standard underwriting because due of the nature of their employment.
6.The mortgage market lacks transparency, borrowers are compelled to trust brokers implicitly and have no methods for checking the number of lenders presented with their application.
7.The mortgage application process is highly inefficient, stressful for the borrowers and doesn’t completely leverage the accessible technologies to automate a significant number of manual steps and give an optimized workflow.
8.The capacity of credit-worthy families to borrow for education and housing needs in order to escape poverty has been hampered as a result of the shortage of long-term financing which was a result of the 2008 crisis.
What Can be Done?
Block66, the first blockchain platform where lenders can access a marketplace of vetted borrowers for mortgage finance solves these above challenges. It solves them for a range of different people and organizations, and for a range of different reasons. The platform represents a little but groundbreaking step forward for the mortgage lending industry. The marketplace is public, transparent, and highly automated, so lending is streamlined, with lower expenses, and lower risks. The platform's cryptographically-secured smart contracts guarantee the market remains public, transparent, and tamper-proof.
The Highlight of the benefits of this platform
1.The Block66 platform will present operational efficiencies and automate wherever possible to streamline the mortgage application and facilitation process. It will pull together a system of virtual underwriters who digitally approve documents.
2.By combining the power of automation with the utilization of human underwriters where necessary, Block66 aims to offer best-in-class user experience for all parties on the platform.
3.All mortgages provided by the Block66 platform are issued on the blockchain and furthermore reflected in the physical world by means of a Digital Trust Fund (DTF). In time, lenders will have the capacity to trade “proof-of-loan” (PoL) tokens on an exchange platform designed particularly for this reason by virtue of a proprietary exchange or an exchange created by a partner.
4.The capacity to divide “proof-of-loan” (PoL) contracts into smaller loan fractions brings down the barrier to entry for smaller investors, increasing liquidity for the originating lender(s) and guaranteeing that investing in this type of asset is inclusive for all manner of investors.
5.By leveraging existing technologies to automatically check and approve documents, and application data, Block66 can go a long way towards securing against mortgage fraud.
6.The platform will be capable of browsing through 100s of lending offers to discover a choice of most possible deals for the broker and the borrower.
7.Aside from Canada and U.S. in the mid-term, the platform lenders will gain exposure to the global mortgages market, including emerging economies.
8.The platform will also provide legal help across various geographies in case of borrower defaults by the method of a network of partnerships.
Block66 Tokens (B66)
The token is used to produce Block66 Network Tokens (BNET). The platform users will require BNET to pay platform charges hence the active market for these tokens. The price of BNET will be set by Block66. BNET tokens are used to make payment for services on the Block66 network. Block66 will set the price of the BNET token sold by means of the platform in such a way as to expand the platform usage while capturing maximum profit for BNET “producers.”
Token Details
Symbol: B66
Technical specification: ERC20 Token
Hard Cap: $12.285m USD
Max potential supply: 300,000,000
Token pre-sale date: 6th September 2018
Token sale: 135,000,000
Token sale end date: TBD
Token price: $0.10 USD
Pre-sale price: $0.07 USD - $500 per ETH Bonus
ROADMAP
Q1 2017: Inception
Block66 is conceived. Work begins on drafting the whitepaper and contact is made with some early advisors and team members.
Q4 2017: Work Begins
Planning work begins on the Block66 platform. User journeys and operating flows are designed for the matching engine.
Q2 2018: Token Generation Event (TGE)
TGE launch coming soon. Office builds out begins. Wireframing and prototypes of platform produced.
Q3 2018: Design AND Distribution Phase
Ramp up marketing and business development efforts. Form "Block66 Alliance" of customers. Move aggressively into product planning and design.
Q4 2018: Build Phase
Alpha testing phase with first customers using the platform. First "Block66 Alliance" report.
Q1 2019: Release Phase I
MVP Launch, with the first batch of on-chain loans funded and distributed via the network.
Q3 2019: Release Phase II
Loan tokenization. Network users can trade on-chain securities on a fractional basis, with smart contracts ensuring that loan repayments are distributed to all token holders.
MEET THE TEAM BEHIND THE PROJECT
JOE MARKHAM: CEO
JAMES TUCKETT: CTO
VISHAL KARANGUTKAR: SOLIDITY DEVELOPER
GABRIEL NICOLA: SENIOR DEVELOPER
CARMELO PULLARA: SENIOR DEVELOPER
KRYSTA MCCALLUM: CHIEF OF STAFF
RYAN SANGER: CHIEF FINANCE OFFICER
ANNA DE GRAVE: PRODUCT DESIGNER & ANIMATOR
For more information about this project and how you can partake in the ongoing ico, visit the following links:
WEBSITE: https://block66.io/
WHITEPAPER: https://drive.google.com/file/d/11ZevZaCwYSG_0iv8On810w3Sjj2E5FLq/view
BOUNTY0X USERNAME: Saintwudi