Homelend: Mortgage Loan Made Easy

Home, no doubt, is an indispensable need for people. For some, home is wherever their relatives or friends are but for some, they think of home as something that they own for their own. For people who chose or have no choice but to rent or buy a place, an option to do so is by taking a mortgage loan but processing a mortgage loan is not easy. The process takes a lot of time, money, paperwork, etc. so overall getting a mortgage loan is a complex process. A mortgage loan is not just between the borrower and the financial institution but people like appraisers, rating agencies, broker, seller are also involved.

The complex mortgage loan process is what Homelend aims to solve. Homelend's mortgage lending platform is a peer-to-peer lending platform based on blockchain and with the smart contract. With Homelend's platform, some of the intermediaries involved in the mortgage loan are no longer needed to process it. Removing these intermediaries may sound risky but because of embedment of the business logic of the mortgage loan process to smart contract, the borrowing and lending will still be secured, will be transparent, and can be trusted. Two fundamental type of flows are observed in the platform: information flows and financial flows. Information flows is the information about the borrower whether he has the means to pay back the loan or not and also about the property, whether the property's value is enough or as valuable as the amount of the loan. Financial flows, on the other hand, are the flow of the lender's monetary resources to the seller.

Homelend's Mortgage Lending Platform to simply put have a standard flow starting from the information flow and then the financial flow. Borrower's creditworthiness is determined by hard and soft information. Commonly the hard information is the financial situation of the borrower which weighs greatly when assessing the borrower while the soft information which is more about personal information like education level and age is still as useful as the hard information and with the P2P lending system, both hard and soft information is thoroughly considered in the assessment. All information is digitalized and once completed, the data are verified. Once verified, the creditworthiness is assessed by a smart contract. A satisfactory result would result to pre-approval of the mortgage loan. As for the property's value, a smart contract is not involved, market analyzation and even property history and environment condition are part of the basis for the appraisal and human intervention is still needed for inspection. Although this part wasn't fully automated, the hassle is not on the borrower's side.

After the borrower's mortgage loan application is pre-approved and everything is set, including the slicing of the loan, it is now up to the lender's side of the platform to move the process of the mortgage loan forward. Slicing of the loan is the process of dividing the loan into smaller loans so for instance, a $350,000 mortgage loan may be divided into 35 slices creating a loan of $10,000 per slice. To understand how these sliced loans are to be financed there are three P2P lending methods for lenders to choose that Homelend will develop and offer. The first lending method is the crowdfunding method. Using the example above, if a $350,000 loan is divided to 35 slices of $10,000 each, a borrower can have as much as 35 lenders. Lenders can fund a loan by buying slices which can be one or more. The concept is pretty simple but the problem with this method is the uncertainty of how long before the mortgage loan can be closed, the sooner all the slices are bought the sooner the mortgage loan can be closed.

The second lending method is the pooling method. Pooling method is a lending method where lenders invest their money before the pre-approved loans. Lenders will send their funds to the smart contract balance and automatically makes them an investor to the existing or future slice chosen by the platform. Therefore, lenders pay in advance for a slice/slices before a pre-approved loan. Once a mortgage loan is pre-approved and divided into slices, slices will then be automatically acquired by the lenders through smart contract.

The third method is the auction method. This method is much similar to crowdfunding than pooling. In an auction lending method, as the name suggests, lenders can bid on the slices and offer borrowers a much better term which could be by offering lower interest rate as compared to the rate pre-approved or by offering discount points. After all the slices have been funded, the mortgage loan will then be ready for closing.

Once a mortgage loan in Homelend Lending Platform is pre-approved and completely funded, the closing of the mortgage will now take place. This is the last step and is considered the most complicated step of the process. This is where signatures from parties get involved and the transfer of property and funds take place. Digital closing or eClosing will be the place of closing for Homelend. Funds will be transferred from the lenders of borrowers to the sellers via smart contract and may happen in two ways: cryptocurrency or fiat currency.

The Homelend token is called HMD token. The HMD token sale details are as follows:

Token: HMD
Price: 1 ETH = 1,600 HMD
Total Supply: 250M
Platform: Ethereum
Accepting: ETH, Fiat, BTC
Hard Cap: $30M
Soft Cap: $5M
Pre-Sale: March 1, 2018

Get the latest details and in-depth information of this ICO and platform through their whitepaper, website and official social media pages here:

Whitepaper: https://homelend.io/files/Whitepaper.pdf

ANN Thread: https://bitcointalk.org/index.php?topic=3407541

Website: https://homelend.io/

Telegram: https://t.me/HomelendPlatform/

Twitter: https://twitter.com/homelendhmd

Facebook: https://www.facebook.com/HMDHomelend/

Medium: https://medium.com/homelendblog

Written by: Banelocke

Bitcointalk User Profile: https://bitcointalk.org/index.php?action=profile;u=2052416