What’s up everybody WAJAHAT is here with another exciting blog on Homelend. Mortgage lends have the chief value in the society. Shelter is the basic need of human need. As the living standards getting better with time, the people who used to be live in the simple houses now built the large, alluring homes. But it’s not easy to build a house on the monthly expenses, the other home expenses consumes a large amount from the income, that a person having an average income could hardly think about his own home. Mostly people living in the cities paying rent for home or some people using the mortgage loan to buy a place. People usually preferred mortgage loan even when they are able to pay cash for the home as they could be compensate home taxes. In the US, mortgage market have an economic role which can be seen through the 2016 mortgage debt value which was US$ 14.29 trillion which is expected to be double in 2018. Despite of its economic importance and need, it is still working on the outdated and inefficient processes which involves the lot of paperwork that slows the overall process and result in the shortcomings during the process. In order to create a new mortgage, the documents needed for this purpose and the completion of paperwork takes a too much time that put the both borrow and lender in wait.
Although the other financial institutions already shift their system on the digital technologies and organize their platforms on the decentralization based process. Whereas, mortgage loan process has the centralized orientation which involves the other parties as well other than buyer and seller, the financial institutions, rating agency, appraiser and broker who makes the process more time taking and slow. Recent process has been changed since the three decades which makes the process more by involving the third parties and creating the secondary market that creates the distance between buyer and the lender and no more direct contact remains. Whereas the traditional process was in between the bank and the buyer where bank plays the role for lender and other entities. This raise the many issues in which the major problem occurred when a person wants to finance the mortgage in a second time, he didn’t to whom he should be contacted. The problems that need to addressed are the information gathering for the mortgage loan and the paper work legacy which need to be replaced by the efficient process which has the monetizing potential. Blockchain technology give the many possibilities to resolve these issues by its storage, transparency and trust values. Blockchain offers the mutual distributed ledgers which serves as a shared database and keep the records in various locations so that it will be inaccessible to any authority. The information needed during the process is accessible by all the parties. Blockchain enhance the efficiency by the hash identifier on the digital document which during servicing and securitization increase the efficiency. Smart contracts helps in the transactions between the different parties by keeping the transparency.
Website link:
https://homelend.io/
Whitepaper link:
https://homelend.io/files/Whitepaper.pdf
This might end up doing well now that home loans are about to skyrocket in price.