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| comment | | "parent_author":"",<br>"parent_permlink":"homelend",<br>"author":"gbenga",<br>"permlink":"homelend-a-blockchain-based-mortgage-crowdfunding-platform",<br>"title":"Homelend; A Blockchain Based Mortgage Crowdfunding Platform",<br>"body":"Homelend is a Blockchain platform that was developed to ease mortgage origination. The platform is expected to transform it into a simpler,<br> more efficient and fair process.\n\n### Homelend; A Blockchain Based Mortgage Crowdfunding Platform\nThe revolution of the internet has disrupted many areas of the financial world. Mortgage lending,<br> which is still conducted under the same traditional system is an exception. Although the tendency towards securitization has caused a growth in the mortgage value chain,<br> the lending process is still tedious and slow. Also,<br> it involves too many players.\nWhat does this mean for the borrower,<br> you ask? It translates into paperwork. The amount of documents that needs to be filled,<br> combined with the number of entities involved in the process makes it all too overwhelming. However,<br> it\u2019s about to get easier.\n\n<center>![ (https:\/\/steemitimages.com\/DQmQean64c3tnuYEixwgvZX7zcHgtBRcLDbRUx4zHBprNKV\/image.png)<\/center>\n\nThanks to Blockchain technology,<br> information can now be easily transferred and accessed by parties involved in the mortgage value chain. The fact that if generates trust and transparency further emphasizes that it\u2019s an effective move towards digitizing mortgage lending,<br> this is where Homelend comes in.\n\n### WHAT IS HOMELEND?\nHomelend is a Blockchain platform that was developed to ease mortgage origination. The platform is expected to transform it into a simpler,<br> more efficient and fair process. It intends to achieve this by reducing the distance between borrowers and lenders. Basically,<br> it\u2019s a mortgage lending platform. How exactly does it work,<br> you ask?\n\n### HOMELEND\u2019S MORTGAGE LENDING PLATFORM\nThe peer-to-peer mortgage lending platform work by embedding the business logic of origination processes into smart contract. Okay,<br> we are moving a little fast. Let\u2019s break it down a bit,<br> shall we?\nYou know what peer-to-peer is,<br> right? Also known as \u201calternative finance\u201d,<br> it is the process which involves individuals borrowing and lending from each other without the intervention of any financial intermediary or bank.\nP2P lending is now seen as the next step in digital ledger technology (DLT),<br> which provides a level of transparency and security. Hence,<br> users are able to record transactions,<br> including loans without any intermediary.\n\n### HOW IT WORKS\nAs said earlier,<br> there is no financial intermediation on Homelend. That means,<br> the financial resources can only flow from the lenders to the borrowers and eventually,<br> to the sellers. This flow is executed purely by smart contract.\nA corresponding mortgage loan is listed in Homelend\u2019s platform after a buyer gets pre-approval from the system. At this point,<br> the mortgage amount should have been determined,<br> and it is expected that the borrower will commit a specified amount as down payment.\n\nNow,<br> any user who is interested in acting as a lender can search for investment opportunities on the platform. By this time,<br> each one of the mortgage loans should have gone through the pre-approval stage on the platform and is ready to be financed through a P2P crowdfunding mechanism. The crowd funding mechanism is described below.\n\nhttps:\/\/i1.wp.com\/bitcoinexchangeguide.com\/wp-content\/uploads\/2018\/04\/homelend.jpg?resize=696%2C449&ssl=1\n\n### HOMELEND\u2019S CROWD FUNDING MECHANISM\nHere is how it works;\n\n#### STEP 1\nEvery pre-approved mortgage will be divided into smaller identical units. For example,<br> John wants $200,<br>000 loan. But the platform will first divide it into twenty $10,<br>000 units first. Let\u2019s call these unit,<br> \u201cSlices\u201d.\n\n#### STEP 2\nEach of these twenty Slices will be assigned a risk score,<br> which lenders will be able to access in the terms of the loan pre-approval. The higher the risk score,<br> the higher the interest rate.\n\n#### STEP 3\nIndividuals will have the opportunity of lending financial resources to borrowers by purchasing these Slices. A lender doesn\u2019t have to purchase all the Slices from a lender. He or she can lend money to as many borrowers as he wants by buying different pre-approve mortgage loans.\nThat means,<br> John\u2019s $200,<br>000 loan will be contributed by twenty different lenders.\n\n#### STEP 4\nThe crowdfunding is finalized only after the Slices of a pre-approved loan are bought. The mortgage will then be sent to final closing.\n\nPlease note that,<br> individual investors will have 30 days to fund Slices. If all the Slices are not sold within this time period,<br> the process will be cancelled and all the investors will get their funds back.\nPerhaps the most important part of the whole system is the use of cryptocurrency for the financial flow,<br> even though the prices of the listed houses,<br> amount of loans pre-approved and their \u201cSlices\u201d are determined in fiat.\n\n<center>https:\/\/blockonomi-9fcd.kxcdn.com\/wp-content\/uploads\/2018\/04\/token-allocation.jpg<\/center>\n\nWhy use cryptocurrency,<br> you ask? According to the whitepaper,<br> the team behind the platform chose cryptocurrency because of its frictionless functionality.\n\nEasier to transfer funds from the lender\u2019s wallet to the seller\u2019s wallet.\n\nTransactions can be completed without commission payment\n\nFully governed by smart contract\n\nHowever,<br> the inherent volatility of cryptocurrency value makes it necessary to determine each of the financial amounts (i.e. property,<br> loan size and down payment) in fiat currency.\n\n### P2P LENDING METHODS\nHomelend is expected to come with three methods of Peer-to-peer lending. These include; pure crowdfunding,<br> pooling and auction. Let\u2019s explore them,<br> shall we?\n\n### CROWDFUNDING METHOD\nThis is the simplest method where potential lenders are expected to find investment opportunities in the form of \u201cSlices\u201d. Different investors will be able to finance a borrowers pre-approved mortgage loans through these slices.\n\n### POOLING METHOD\nUnlike crowdfunding,<br> lenders will have the opportunity of investing through smart contract before the approval of the specific mortgage loan. The same \u201cSlices\u201d buying principles as the crowdfunding applies. The only difference is that; lenders will be able to pre-buy them.\nThe major advantage of this method is the level of financial buffering it offers without the need of an intermediary.\n\n### AUCTION METHOD\nThe auction is not expected to offer any form of financial buffering. It\u2019s more like crowdfunding,<br> except that lenders will have the ability to offer borrowers better conditions than those the platform pre-approved.\n\n### TOKEN GENERATION EVENT\nTo serve the economic dynamics of the platform,<br> a token generation event will be hosted. The HDM token is supposed to offer access to the services offered on the platform. It doesn\u2019t matter if the services are provided by Homelend to third parties working with Homelend,<br> users will still need the token.\n\n### TOKEN SUPPLY\nAccording to the whitepaper,<br> the total number of HDM token that is expected to be issued during this event is 250 million. Twenty percent of the token (50 Million HDM) is expected to be held in reserve while the remaining 80 percent (200 Million HDM) will be in circulation. The token is supposed to cost 1ETH for 1,<br>600 HMD.\n\n### TGE SPECIFICATION\nThe first thing you should know here is that,<br> Homelend tokens are minted,<br> not mined. The tokens are Ethereum based ERC-20 standards created to allow users access the services provided by the Homelend platform. As such,<br> they are utility tokens,<br> not security tokens.\n\n### TOKEN DISTRIBUTION\nAs said earlier,<br> 50 Million HMD will be held in reserve. That implies that 200 Million HMD will be distributed. According to the whitepaper,<br> here is how.\nThe largest percentage of the token,<br> about 36 percent (90 Million HMD) will be used for the TGE public sale. This will happen after 28 percent (70 Million HMD) must have been used for the pre-sale.\nThe founding team is expected to receive 8 percent (20 Million HMD) of the tokens and another 8 percent will go to advisors and bounty services.\n\n### DISCOUNT INCENTIVES\nOf course,<br> there are bonus incentives over the face value of HMD tokens during the presale. Also,<br> discount incentives will be offered during the public sale. However,<br> this depends entirely on the time of token purchase.\n\n____\n____\n### Source\n\nWebsite: https:\/\/homelend.io\/\nWhitepaper: https:\/\/homelend.io\/files\/Whitepaper.pdf\nAnn Thread: https:\/\/bitcointalk.org\/index.php?topic=3407541\nTwitter: https:\/\/twitter.com\/homelendhmd\nFacebook: https:\/\/www.facebook.com\/HMDHomelend\/\nMedium: https:\/\/medium.com\/homelendblog\nTelegram: https:\/\/t.me\/HomelendPlatform\/\nLinkedin: https:\/\/www.linkedin.com\/company\/18236177\/\nReddit: https:\/\/www.reddit.com\/r\/Homelend\/\n\nAuthored by: gbenga88\nBitcointalk URL: https:\/\/bitcointalk.org\/index.php?action=profile;u=1874687\nEth Address: 0xdcef7d27bbaae609accdaf43ccf41b042beaffb4",<br>"json_metadata":" \"tags\":[\"homelend\",<br>\"motgage\",<br>\"cryptocurrency\",<br>\"decentralization\",<br>\"blockchain\" ,<br>\"image\":[\"https:\/\/steemitimages.com\/DQmQean64c3tnuYEixwgvZX7zcHgtBRcLDbRUx4zHBprNKV\/image.png\",<br>\"https:\/\/i1.wp.com\/bitcoinexchangeguide.com\/wp-content\/uploads\/2018\/04\/homelend.jpg?resize=696%2C449&ssl=1\",<br>\"https:\/\/blockonomi-9fcd.kxcdn.com\/wp-content\/uploads\/2018\/04\/token-allocation.jpg\" ,<br>\"links\":[\"https:\/\/homelend.io\/\",<br>\"https:\/\/homelend.io\/files\/Whitepaper.pdf\",<br>\"https:\/\/bitcointalk.org\/index.php?topic=3407541\",<br>\"https:\/\/twitter.com\/homelendhmd\",<br>\"https:\/\/www.facebook.com\/HMDHomelend\/\",<br>\"https:\/\/medium.com\/homelendblog\",<br>\"https:\/\/t.me\/HomelendPlatform\/\",<br>\"https:\/\/www.linkedin.com\/company\/18236177\/\",<br>\"https:\/\/www.reddit.com\/r\/Homelend\/\",<br>\"https:\/\/bitcointalk.org\/index.php?action=profile;u=1874687\" ,<br>\"app\":\"steemit\/0.1\",<br>\"format\":\"markdown\" " |
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