Block66 Leverages Blockchain to Provide an Immutable Audit Trail in the Mortgage Process
NEW YORK, June 21, 2018 /PRNewswire/ -- Block66—a blockchain-based solution—today announced the creation of its new platform designed to leave an audit trail for lenders as a way to reduce mortgage fraud. The company's blockchain technology will act as a mortgage hub, storing government regulations, internal guidelines provided by lenders, and information on applicants and their property obtained directly from the source.
"We created Block66 to offer new opportunities for borrowers and end the time-consuming and paper-driven processes in the mortgage industry," said Joe Markham, Founder and CEO of Block66. "Our platform will make it easier for everyone to find what they need so mortgages can be approved and funded faster. By storing the history of each transaction on the blockchain, we will provide a valuable audit trail for lenders, which will help mitigate mortgage fraud."
In the future, the platform will also use loan-based smart contracts to create tokenized securities that lenders can use to build mortgage-backed lending instruments. Lenders will be able to trade those instruments on token exchanges, which will provide them with additional liquidity.
"The idea behind mortgage tokenization is to bring in smaller lenders," said Markham. "They are often reluctant to tie themselves to longer repayment plans but are more willing to lend capital to customers who aren't always favored by traditional banking institutions, even though they are credit-worthy."
This feature comes in the wake of new research that suggests how difficult it is to receive a mortgage loan with a fair credit score. According to the State of Nation's Housing report, the median credit score for owner-occupied home purchase originations increased from 700 in 2005 to 732 in 2016.
The same report indicates that just 0.1 percent of conventional first-lien home purchase mortgages in 2017 were to borrowers with credit scores below 620—and 3.3 percent were to borrowers with scores between 620 and 659. The equivalent figures in 2001 were 7.3 percent and 10.6 percent.
Block66's will have a Token Generation Event (TGE). To learn more about Block66, visit their website at Block66.io to download their white paper and join the company's newsletter.
Founded in 2018, Block66 is a solution disrupting the mortgage industry. Block66 improves mortgage cost, efficiency, and transparency, and creates new opportunities for borrowers and lenders alike. The Block66 platform uproots the entire mortgage industry, replacing it with the loan ecosystem of tomorrow.
Front Lines Media