HOMELEND - A Mortgage Crowdfunding Platform - Blockchain ANN - All About Cryptocurrency

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Sunday, May 6, 2018

HOMELEND - A Mortgage Crowdfunding Platform


INTRODUCTION 

  Mortgage loans are at the core of society.

One of our basic needs as hu-man beings is shelter. Buying a TV, embarking on holiday travel, starting a business, or even sen-ding your kids to college... These are choices you can choo-se not to make in order to avoid becoming indebted. But not ha-ving a home isn’t —or shouldn’t be— an option.

For most people, the only options for housing—besides living with their families, friends or relatives—are either renting or buying a place using a mort-gage loan. Few are able to make a cash home purchase. Indeed, in the U.S., cash transactions
account for only a third of home purchases1. Even when someo-ne is able to pay cash, a small mortgage loan might continue to be preferable as mortgage interest payments can, in some places, be deducted for income tax purposes2.

There is no shortage of statistics clearly illustrating the importan-ce of the mortgage market from an economic and social stan-dpoint. For instance, in absolute terms, in the Unites States alo-ne the value of mortgage debt outstanding for 2016 was US$
14.29 trillion, almost reaching pre-2008 global financial crisis levels3. This number is expected to reach US$ 31 trillion in 2018, at the global level, according to Market Reports Online4. In relative terms, on the other hand, one finds that in a sma-ll country like Israel, 61.53% of household debt and 37.29% of all debt stems from housing loans5.



BLOCKCHAIN AND THE MORTGAGE INDUSTRY 

Many areas in the financial world have been disrupted by the Internet revolution. Howe-ver, mortgage lending, despite being one of the largest areas, is still generally conducted under the same traditional system. The mortgage value chain has grown
in complexity during the past three decades, due to the trend towards securitization, which has significantly amplified finan-cial supply. Nevertheless, mortgage lending processes remain mostly paper-based and involve many players, making them complicated, tedious and slow.

This has several negative conse-quences for the borrower as well as for other parties involved. For instance, many borrowers are burdened by the sheer amount of
paperwork they need to manage. But the large amount of documents that need to be filled and the number of entities invol-ved in the mortgage origination process are a consequence of two facts. First, there’s a real need for information gathering, analysis and checks to guarantee that the mortgage loan will be repaid. Second, this continues to be a paper-based legacy process that has not been sufficiently modernized and aligned with technological progress.


immutability, it is an effective move toward digitization, not only of mortgage documentation but of all related business processes.

In the next sections, a brief explanation of the mortgage value chain will be given in
order to point out the shortco-mings of the current system. As will be observed, many of these problems can be addressed through blockchain technology.



BUSINESS MODEL  

Homelend is being developed as a blockchain solution that will significantly increase the housing financing possibilities for many individuals and fami-lies. Our value proposition is socially sensitive and anchored in a P2P progressive approach
that aims to use technology for society’s benefit.  Nonetheless, Homelend is also
based on a sound and profitable business model, which cons-ciously reaches out to address an underserved market. On the one hand, Homelend creates an investment opportunity for many individuals, with a solution that unites a traditional industry as
real estate, with an innovative technology like blockchain. On the other hand, it makes possible for many individuals (who due to various circumstances, including
current limitations in the tradi-tional credit risks models, do not possess a solid credit score but are otherwise creditworthy) to access to housing financing and solve one of their most basic aspirations: having a home of their own.

This chapter will discuss Ho-melend’s go-to-market strategy as well as revenue sources and monetization opportunities.



TOKEN GENERATION EVENT  

In this chapter, we will exp-lain the use, functionality and characteristics of a token to be issued by Homelend through a Token Generation Event (TGE), also commonly known as an Initial Coin Offering (ICO). This token, simply called the “Ho-melend token” and identified as HMD token, will be the fuel of the P2P lending platform, as will be discussed in more detail.

The choice to create a utility token has been carefully considered by the founding
team, and it is based on several reasons and goals. Below we describe the rationale behind the issuance of HMD tokens.



The Homelend Token (HMD) 

The HMD token is the fuel powering the Homelend peer-to-peer lending platform. It's main functionality is to grant access to the Homelend platform.

This utility token also plays an instrumental role in enabling a fast, smooth and user-friendly workflow that is unified and secure.

All tokens can be converted to and from HMD.



Token Allocation 

  
Use of Proceeds   


Team & Advisors 





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