A New York based start-up says its new platform will help mortgage lenders cut the risk of mortgage fraud by providing a digital audit trail.
Block 66’s platform is built on digital ledger blockchain technology and will also serving as a hub for 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."
Mortgage-backed digital securities
The firm also has plans to introduce loan-based smart contracts that will create mortgage-backed lending instruments that lenders will be able to trade on digital exchanges.
"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 favoured by traditional banking institutions, even though they are credit-worthy."
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