Mortgage loans constitute a prominent part of our economy. The three basic requirements of a human being are : food, clothing and shelter. The third requirement means housing facilities. Apart from living with family, people either prefer buying a house or taking one on rent. A very small portion is able to make cash transactions in this field.Mostly people rely upon mortgage loans to get shelter. According to Market Reports Online, the mortgage debt in United States of America (USA) was estimated around US $14.29 trillion in 2016 which is expected to reach US $ 31 trillion in 2018 at the global level. This concludes that housing loans are a major part of our society. Instead of this, the process of acquiring a mortgage loan is quite complicated involving a lot of paperwork alongside ineffective means costing a good amount. In addition to this, the procedure is still paper-based in the age of digitalisation giving rise to other complexities.The involvement of many parties from borrower, lender to brokers and third-parties makes it even more complicated.
Website- https://homelend.io/
What's the SOLUTION?
In order to sort out these complications, a group of individuals came up with an innovative idea which was named Homelend. The complex and lengthy paperwork along with poor management shown by lender institutions makes the mortgage industry slower and less efficient. These problems can be solved by a powerful technology which is becoming a core solving tool for problems from a wide number of sectors ranging from banking to entertainment industry. This technology is called Blockchain Technology. This venture aims to harnesses the potential of Blockchain Technology to remove these unnecessary complications making the process of acquiring housing loans faster, efficient and transparent.
How it Works?
According to its Whitepaper, Homelend can be simply defined as
A Blockchain - Based Mortgage Crowdfunding Platform
This venture makes use of Blockchain Technology and smart contracts integrated with Peer to Peer lending method ( P2P ) by which a person can lend or borrow money/loan from another person without the intervention of any financial institution like bank or any other third party. This leads to a faster process as people don't have to go through poor management of lender institutionss and a better transparency along with a good reliability. The three main points which are considered while executing the process of acquiring housing loan by this method are:
● The purchase of property is legally possible.
● The borrower can pay back the loan.
● The recovery can be done in case of non-repayment by the borrower.
P2P Lending Methods
Homelend makes use of three P2P Lending methods which are mentioned below:
1.Crowdfunding method
This involves funding of mortgage loan to a borrower by a number of lenders in slices as shown in figure below:
- Pooling Method
This method is similar to crowdfunding method except it allows the lenders to pre-buy those 'slices’ and the funding by the lending front can exceed the borrower's requirement.
3.Auction method
This is an another variant of the crowdfunding method which gives an opportunity to lenders to give discount or lessen the interest rate on the loan approved to the borrower.
Homelend Tokens
Homelend's virtual currency is called HMD Token. The total number of tokens which are be issued in Token Generation Event (TGE) will be 250 million. Out of these 50 million will be reserved for future perspectives and the other 200 million will be available for investors. Each HMD Token’s value is calculated according to : 1 ETH = 1600 HMD.
Homelend Team
The team behind Homeland venture is an expert one. Itai Cohen is the Chief Executive Officer of the Homeland. The team has big names like Netanel Bitan, Amir Nahmias, Michael Tanfilov, Ram Stivi and many more.
Conclusion
Homelend is an appreciable approach to make the mortgage industry digital and more transparent. It is a revolutionary idea which if goes on practical grounds can bring the much needed changes required in the industry.
For more details visit
ANN- https://bitcointalk.org/index.php?topic=3407541
Website- https://homelend.io/
Published By- karanj
Btalk Profile- https://bitcointalk.org/index.php?action=profile;u=1030341