Homelend is developing a decentralized platform enabling the next generation of homebuyer mortgage financing. Homelend creates an interface for direct interaction between borrowers, lenders and other parties involved in the mortgage value chain. By doing so, it enables mortgage crowdfunding using a peer-to-peer model with the security, transparency and automation provided by distributed ledger technology (DLT) and smart contracts. Our goal is to distrupt the USD 31 trillion market.
How Does Homelend Work?
Homelend is building a decentralized, peer-to-per mortgage lending platform that will have two core goals:
To modernize the aging mortgage lending system to make it more efficient, cost-effective, and customer-centric
To expand home ownership opportunities for a new generation of borrowers while meeting their distinct lifestyle and needs
To accomplish these goals, Homelend will use blockchain technology and smart contracts to bring parties together in a decentralized marketplace. Individual borrowers and lenders will be able to interact across the Homelend marketplace. Homelend will be an end-to-end system that processes all stages of the mortgage process – from the early stages of application to the final stages of paying your last mortgage payment.
The Homelend ecosystem revolves around the Homelend Token, or HMD.
Borrowers will be able to access three different P2P lending methods on the Homelend platform, including pure crowdfunding, pooling, and auction. In each of these lending methods, the flow of financial resources is controlled and executed by smart contracts with no need for middlemen or financial intermediaries. Each funding method can also split a mortgage into “slices”.
Crowdfunding Method: Crowdfunding is the simplest funding method on Homelend. Potential lenders can find investment opportunities in the form of mortgage “slices”. The borrower’s loan will be divided into smaller fractions, and smaller lenders can provide a slice of that mortgage (by depositing cash) in exchange for a fixed interest rate based on the terms of the mortgage.
Pooling Method: The pooling method gives economic flexibility to the Homelend lending system. Under the pooling method, lenders can invest money through smart contracts before the specific mortgage has been pre-approved. Investors are still buying different “slices” of the mortgage, although the smart contract allows lenders to pre-purchase slices before the loan has been approved.
Auction Method: The auction method will allow investors to bid on different mortgages as investment opportunities. You might spot a buyer with a good credit rating offering a generous interest rate, for example. You compete with other investors to offer a slice of that mortgage. The key difference with the auction method is that there’s no financial buffering involved in the process. The advantage is that lenders can offer borrowers better conditions than those pre-approved by the platform, if they choose to do so.
Benefits
- Speed and efficiency: the process of issuing a loan in the conditions of the existing credit system is long, uncomfortable and humiliating for the borrower. Blocking and smart contracts automate all bureaucratic red tape and reduce the entire clearance process to twenty days against 2-3 months, which are required for registration in the traditional way.
- Transparency: Homelend will create a simple, safe and fair lending system, borrowers can quickly and simply apply for loans and also monitor the status and status of their application in real time.
- Profitability: Homelend will save both sides from the need for mediators. They will be replaced by blockade. all documents and data on all transactions will be recorded in it, which will ensure maximum transparency during the entire term of the loan agreement.
- Reliability and security: The encryption method used in the Homelend system with a public key will reliably protect users' data and money from hacker attacks and other malicious acts.
Homelend Token Sale
Homelend is a platform and it needs access to each user. HMD is the token which is designed for Homelend transactions. You need HMD tokens to get access and transact accordingly. The tokens ensure that you get seamless, user friendly and quick access to get your job done. Since this is a new setup, you may be used to other tokens and cryptocurrency in the game. This is easily possible as you can convert your HMD tokens to any other token or currency and vice versa.
A total of 250 million HMD tokens are available for sale and they are tagged as ERC-20 tokens. The crowd sale dates are yet to be announced by the team. But the pre-sale started on 1st March 2018. The public sale is expected to start around June 2018 but is still tentative. The price for HMD at the sale is fixed at 1600 HMD per ETH. Homelend also accepts ETH, BTC, and USD for direct purchases. You can transact as per your needs and work to get as much exposure you forecasted. The soft cap for HMD is at $5 million USD and the hard cap is at $30 million USD for all users. If you use ETH for your HMD purchases then there is a bonus declared as well. This bonus is at 20% for the first week, 15% for the second week and 10% for the third week of sale. So, if you plan to purchase Homelend and you have ETH with you, then it is a lucrative opportunity to gain more from the same level of investment.
Who’s Behind Homelend?
Homelend was co-founded by Itai Cohen (CEO) and Netanel Bitan (CTO). Other listed members of the executive team include Ricardo Henriquez (Chief Innovation Officer) and Amir Nahmias (Chief Business Officer).
Homelend has partnered with BrightNet, GenesisZero, NetObjex, and Market Across to bring its platform to life.
Homelend is based in Zug, Switzerland. The company was incorporated in 2016.
Conclusion
The aim of Homelend is to get the $31 trillion USD industry to its feet. The dream is big but very good in concept. You can look at the nuances of the mortgage in the current industry and this has caused a lot of trouble to the users. With everything going digital, why should such a huge industry be left back alone? Taking this thought ahead, the blockchain technology shall help the founders of Homelend to make this dream come true. This concept will be very helpful to the borrowers and lenders so that the buying and selling of property would be smoothened enough. You can breathe a sigh of relief with the paper methods going down and eradication of middlemen to give you a more cost effective and transparent method. The old process when compared the new Homelend one can give a jolt to the mortgage industry and the results are already seen among investors.
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