BLOCK66 - Mortgages on the Blockchain

Since the financial crisis, traditional mortgage lenders have considerably tightened the lending criteria. To a large extent, this was a fair reaction to over loans. However, the restrictions imposed also have limited lending to borrowers previously served by traditional financial service providers and who were able to repay the mortgage since the mortgage loan has been boosted for people who can not meet the standard insurance criteria.

Along with the abolition of mortgage criteria, the nature of work is also changing: fewer borrowers meet the standard insurance criteria due to the nature of their business, and many claim to have difficulty obtaining mortgages because of their nature, the atypical character of their employment.

The non-premium market segment is currently often used by non-traditional lenders, primarily family offices and high net worth, which brokers offer the possibility of lending. In all regions of the world, this market is highly segmented, non-transparent and slow. There are many examples of fraud and misinterpretation of consumers.

The mortgage market also lacks transparency, borrowers are forced to trust brokers implicitly and have no possibility of checking the number of lenders represented by their application. In some countries, the market is largely segmented, and hundreds of active lender-based lenders operate in the area, making it virtually impossible to cover an unauthorized broker.

On average, the mortgage application process lasts for several days. An important part of this time is the collection of necessary documents and subsequent exchanges between the borrower and the lender, providing additional information and corresponding to the requirements. This process is very ineffective, stressful for borrowers, and it does not take full advantage of available automation technologies for many manual steps and an optimized workflow.

High fees, capital requirements and the lack of a transparent trading market serve to limit most investors in MBS trading. Institutions and a small percentage of private lenders associated with the ecosystem of mortgage brokers are the only active investors in the area. Significant amounts of capital remain blocked or deployed in other instruments.

Thankfully, with Block66, an airtight mortgage finance system that leverages blockchain technology is finally put in place to solve bottlenecks associated with this industry.

Block66 is the first platform where lenders can access marketed borrowers seeking mortgage financing. This market is public, transparent and highly automated, so loans are simplified, with lower costs and lower risks.

Block66 streamlines the entire mortgage software and operations stack. For brokers, a one-stop-shop, including credit scoring, property appraisals and lender matching. For lenders of all sizes, a sustainable loan pipeline, auditing tool and mortgage securitization platform. For borrowers, a quick, hassle-free way to access the best credit opportunities.

Block66 is building a new blockchain-enabled marketplace for mortgages. Institutional and private lenders can use the service to offer loans to a wide range of borrowers, introduced by Block66 broker partners. Through the practical use of smart contracts, loans can be taken from origination to facilitation, quickly and efficiently. All loans are also represented as tradable tokenized securities, providing a liquidity mechanism as standard. The ability to trade fractions of loans, and reduced order and issuing fees makes investing more inclusive, providing an attractive investment vehicle for all manner of investors.

Furthermore, Block66 infrastructure will be implemented as a decentralized application (dApp), and run on the Ethereum network. Brokers will be able to list clients as lending opportunities on the platform, after being thoroughly vetted by Block66 through proof of residence, credit reports, license verification, and criminal record checks. Proprietary software, as well as a network of partners, will be used for this purpose. Based on a personal risk/reward ratio, lenders can then select an investment from the offered mortgages to add to their portfolio. Block66 Network fees are payable exclusively in BNET tokens.

The Block66 platform will introduce operational efficiency and automate as much as possible to optimize the use of mortgages and the process of facilitation. While Block66 believes in technology, some loan cases are customized and better managed by human agents. To solve these cases, Block66 will gather a network of virtual subscribers who will digitally check the documents. By combining the power of automation with the use of human subscribers, if necessary, Block66 strives to provide the best user experience for all parts of the platform.

MISSION

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 span borders, connecting private and institutional lenders with borrowers worldwide. All mortgages will be issued and managed on the blockchain.

HOW DOES BLOCK66 WORK?

Block66 will make use of a decentralised application(dApp) running on ethereum blockchain to serve as framework for the ecosystem . On this dApp, brokers and their clients (borrowers) will be provided a list of potential lenders, right after validating their identities and confirming the genuity of other submitted documents .In case they are not able to come up with a proper application, underwriters are just a click away from doing the job for quite affordable rates .

The application is submitted to a matching engine which performs the task of pairing borrowers to lenders whose capital is sufficient to meet the borrower's desired amount. The matching is completed on acceptance by both parties after which a "Proof of Loan" (PoL) smart contract is created in order to secure the transaction in a secure and immutable manner on the blockchain. Through this PoL smart contract, the lender releases the required funds in ETH. On receiving said funds, an automated trade is initiated to derive a fiat equivalent before being transferred to the borrower, all via the smart contract.

ADVANTAGES OF BLOCK66

Time-saving:

According to survey, mortgage loans take close to 50days to be granted in the United States. This is quite a lot of time to waste, especially when the borrower requires it urgently for a creditworthy startup. With block66, applying for and receiving a loan can take an average of 3days or less,which may only even be up to that due to data validation or issues arising as a result .

Lender-Borrower Accessibility:

Block66 not only provides an ecosystem that makes it easy for borrowers to find lenders, but also provides a number of them to ensure borrowers get the very best.

Saves expenses:

Block66 helps save expenses that otherwise will have been spent on seeking bank mortgage loans.Since all transactions are carried out on the dApp, block66 has no geographical restrictions which means that distance is no barrier .

Efficient Identity Validation Mechanisms:

With Block66, borrowers and lenders documents and identity are properly scrutinised by both human and automated means to ensure authenticity.

Secured and Transparent:

Block66 is a more secure form of mortgage financing as transactions on the blockchain are highly secure,immutable and verifiable hence,leaving no room for fraud.

TOKEN AND ICO DETAILS

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.