Block66 introduces Blockchain-Based Platform to Mitigate Mortgage Fraud

Block66 launched its new platform designed to leave an audit trail for lenders as a way to reduce mortgage fraud.

The new solution will act as a mortgage hub. It will store government regulations and internal guidelines by lenders. It will also store applicants information and their property obtained directly from sources. The platform will also use loan-based smart contracts to help create tokenised securities. The lenders can use these securities to build mortgage-backed lending instruments.
Further, these instruments can also be traded on token exchanges creating liquidity for lenders, the announcement said.

Founder and CEO of Block66, Joe Markham said, "We created Block66 to offer new opportunities for borrowers and end the time-consuming and paper-driven processes in the mortgage industry. 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." Markham further said, "The idea behind mortgage tokenization is to bring in smaller lenders. 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."

It is to receive a mortgage loan with a fair credit score according to new research. State of Nation's Housing report observed that 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 will have a Token Generation Event (TGE) and details available at Block66.io.