Homelend - A Mortgage Crowdfunding Platform

maniakbtc (1)(1)in #cryptocurrency • 6 years ago

WHAT IS HOMELEND ?

Homelend is a decentralized platform that allows financing next generation homebuyer mortgages. Homelend creates an interface for direct interaction between borrowers, lenders and other parties involved in the mortgage value chain. Thus, it allows crowdfunding mortgages using peer-to-peer models with the security, transparency and automation provided by distributed ledger technology (DLT) and smart contracts.

How does it work ?

By utilizing distributed ledger (DLT) and smart contracting technologies, Homelend brings together individual borrowers and lenders on an end-to-end platform that simplifies and automates the entire process of mortgage origination.

Today's Mortgage Loan Industry

Mortgage Loan Being in Core Society

Owning a home is one of the basic human needs - the need most people can only afford by taking out a mortgage loan from a bank. In the US alone, more than 8 million mortgage loans are granted every year.

An Archaic $ 31 Trillion Industry Yearning for Disruption

The US mortgage market is worth $ 14 trillion, and the global market is expected to reach $ 31 trillion by the end of 2018. However, regardless of how socially and economically the market is, the traditional mortgage lending system remains very primitive.

This system relies on a long and complex paper-based process involving various intermediaries - a process loaded with inefficiency and overhead for borrowers and lenders. In addition, most mortgage loans are not affordable for a new generation of young borrowers, including millions of credit worthy individuals from getting a home loan because of the outdated assessment criteria.

The Homelend Advantage

From Manual & Length, to Efficient & Efficient

By embedding predefined business logic into smart contracts, digitizing documentation and eliminating unnecessary processes, Homelend will automatically initiate end-to-end origination, cutting it from 50 days to less than 20.

From Ambigu & Clunky to Transparent & User-Friendly

Homelend aims to create a loan process that is not only smart, but also simple and fair. This will allow borrowers to be able to easily apply for loans, track the status of their application at any time and interact directly with mortgage lenders.

From Intermediation Fee to Cost-Effective & Free-Middleman

The firmness, security and transparency provided by DLT makes it possible to record transactions, including loans, without the bank acting as an intermediary. This will reduce the costs to borrowers and lenders, while minimizing the distance between them.

From Vulnerable & Unreliable Trusted & Safe

Centralized and paper-based processes are the key factors behind the insecurity and vulnerability that characterize the traditional mortgage industry. The unique characteristics of DLT and smart contracts allow Homelend to provide a platform for people to transact large sums of money in a trustworthy, transparent, and secure way.