Good day everyone, i bring to you today a very interesting project called THE HOMELEND PLATFORM,the HOMELEND is building a blockchain-based, peer-to-peer mortgage lending platform.Today i would be writing on the following;
A) WHAT IS HOMELEND?
B) WHAT BLOCKCHAIN TECHNOLOGY OFFERS
C)ADVANTAGES OF HOMELEND PLATFORM
WHAT IS HOMELEND?
The introduction of mortgage-backed securities (MBS), while expanding financing sources and liquidity, introduced further complexity.Mortgage market securitization, for all its advantages, created an environment where sound credit assessment was relaxed.Confident that MBS would remain a low-risk instrument because most mortgages debts are paid religiously (even if some borrowers could default on their debts), banks began granting sub-prime loans under unfavorable conditions.
One of the underlying reasons for the severity and extent of the sub-prime crisis was the combination of irresponsible lending with real estate speculation. Individuals who couldn’t afford an expensive house were nonetheless given credit on the assumption that housing prices would keep increasing. People borrowed money in order to speculate on the housing market, not because they needed a home. But given that the assessment on a mortgage application was solely based on economic grounds (primarily in terms of credit ratings), speculation was
boosted.
The mortgage industry is evolving toward innovative solutions, capable of dealing with the aforementioned problems and of increasing efficiency, reliability and transparency.This evolution will also address market failures derived from a purely economic logic. In this new market environment, Homelend is developing an innovative platform that taps into the power of blockchain technology and will disrupt the mortgage industry.
This will be done by opening new P2P funding / investment opportunities, better managing information, and reduce origination costs by automating business processes with the help of smart contracts.
WHAT BLOCKCHAIN TECHNOLOGY OFFERS
Blockchain is an instance of what are known as Mutual Distributed Ledgers (MDL).A distributed ledger is a shared database where records are stored in multiple locations, in such a way that no organization or entity has control over it,and therefore cannot modify it. In a traditional non-blockchain scenario, databases are handled by a single organization. For instance, a bank has a record of the amounts deposited by its account holders. Were someone
able to hack the system and modify the database, he would also be able to steal a large amount of money (of course, banks have many security measures to counter these attacks).
The reason why depositors continue to put their money in banks’ hands is that they trust the banks and their systems. “Trust is the stock-in-trade of financial services. In reality, financial services trade on mistrust. If people trusted each other on transactions, many financial services might be redundant.
ADVANTAGES OF HOMELEND
A) From manual & lengthy, to Streamlined & Efficient:
By embedding pre-defined business logic into smart contracts, digitizing documentation and eliminating unnecessarily processes, Homelend will automatically execute an end-to-end origination process, cutting it down from 50 days to less than 20.
B) From Ambiguous & Clunky to Transparent & User-Friendly:
Homelend aims to create a lending process that is not only smart, but also simple and fair. It will enable borrowers will be able to easily apply for a loan, track their application status at all times and interact directly with mortgage lenders.
C) From Costly Intermediation to Cost-Effective & Middleman-Free:
The immutability, security and transparency provided by DLT makes it possible to record transactions, including loans, without banks acting as middlemen. This will reduce costs for both borrowers and lenders, while minimizing the distance between them.
D) From Vulnerable & Unreliable to Trusted & Secure:
Centralization 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 enable Homelend to provide a platform for people to transact large amounts of money in a trusted, transparent, and secure way.
THANKS FOR READING.
To know more about this project;
visit the website: https://homelend.io/
join the telegram group: https://t.me/HomelendPlatform
my bitcointalk link: bitcointalk.org/index.php?action=profile;u=1070043
whitepaper link: https://homelend.io/files/Whitepaper.pdf
ANN/BOUNTY THREAD LINK: https://bitcointalk.org/index.php?topic=3407877.0
facebook link: https://www.facebook.com/HMDHomelend/
twitter link: https://twitter.com/HomelendHMD