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Block66 ICO – The Next Revolution in The Mortgage Industry

The Mortgage Industry Today

The mortgage industry has been ripe for disruption for years. After all, there’s been very little change in the industry for years, even with the financial crisis a decade ago. However, that’s set to change with the Block66 a project that is currently in its ICO phase. Think about it; when was the last time the mortgage industry was fully transparent? Or transparent in any way?

At this point in time, mortgages are a rich person’s playground; the industry is run by rich people for slightly less rich, rich people. Because of that, many people who deserve, and desperately want and need, mortgages are being left out of the picture. Because of a lack of transparency, as well as risk aversion, creditworthy people are being left without what they need in order to own a house, for example. However, that’s where the Block66 project comes in. By reducing the cost of entry, it lets smaller organizations, or even individuals, to start lending. It also helps reduce the risk of becoming a lender. Because of this lower cost of entry, many smaller lenders can become more flexible with who they lend to; they can get rid of some criteria, or at least relax it, to the point that they can afford to lend to first-time borrowers and others who were previously blocked from the system. In short, it’s powered by Blockchain technology, enabling a lot more security than a typical lending institution. This helps to reduce a number of different types of risk, letting mortgage lenders ease up on a number of restrictions.

Watch the Block66 introduction video below (article continues after the video).

Block66 Potential in the Industry

The Block66 platform gives potential lenders a host of solid reasons to enter the market and begin lending. The advantages it offers means that they can pass on some of these advantages to borrowers, regardless of how much the mortgage is for. For example, the reduced cost of lending means that the cost of borrowing will also go down. So, not only will mortgage lenders be saving, but so will those that are taking out the mortgage. The systems and processes that mortgage lenders currently use have been in place for years, if not decades. This means that not only are they outdated, but these systems and processes can be cumbersome and often results in creditworthy borrowers being refused mortgages when they should in fact be eligible.

These processes often bring up red flags where there often aren’t any, meaning that risk-averse lenders often refuse to lend. However, with Block66’s streamlined, modern approach, all of this is avoided. Risks are seen more clearly, meaning that no false flags will be thrown up; while some may still be refused mortgages, many who were ineligible before will finally be able to borrow a mortgage that they are able to pay for. For lenders, the system offers a sustainable loan pipeline, an auditing tool, and a security platform. Essentially, the system reduces much of the risks that are currently there in typical mortgage institutions. With that reduced risk, many lenders, regardless of size, will be able to offer more mortgages and to a more diverse pool of borrowers.

On a borrowers end, the fact that they’re now more likely to get a mortgage is one great reason to start using the Block66 ico. On top of that, the system gives borrowers a quick and easy way to access different mortgage opportunities. Furthermore, it also lets them find the most appropriate mortgage lender for their budget, so it also reduces some risks on the borrower’s end.

Borderfree Mortgages

While that may be one kind of disruption to the mortgage industry, BIock66 also offers another kind of disruption. Currently, lenders are generally restricted to lending where they have a physical location. They need to have a physical presence where they have their customers. However, with this system, lenders will no longer be bound by that restriction.

Over time, Block66 will be able to connect lenders and borrowers from across the world, with all contact taking place on the platform. Contracts and other legal measures will all be secure on the platform, giving both borrowers and lenders peace of mind. Let’s take American mortgage lenders as an example. Currently, the mortgage industry in America is worth $9.9 trillion.

However, that’s just a small part of the cake; worldwide, the industry is worth about $32.9 trillion. Giving lenders access to the worldwide market means that many will thrive and be able to lend to a significant amount of people. On a borrowers side, this means that — with a vast number of new lenders on the market — prices for mortgages will go down; essentially, the interest rates on mortgages will go down, meaning many will save a significant amount in the long run.

This could end up being the biggest disruption that the mortgage industry could ever see. Not only would that mean that mortgage lenders will be able to diversify their borrowing pool, but they’ll also be able to reduce and spread risk, which could actually be great for borrowers. If the risk is diversified, then that means that it’s set to be a lot lower than it is currently, then the price of borrowing will greatly reduce. With that, it means that the likes of interest rates will go down for the vast majority of borrowers.

Mortgage lenders will still be able to make the same kind of money, but with a more diverse and worldwide borrower base. And, on the borrower’s end, not only will it mean that almost everyone now has a chance at a mortgage, but they’ll be paying a lot less back than they typically would have if they went to an ordinary mortgage lender.

Connecting Suitable Borrowers and Lenders

Furthermore, the platform helps connect borrowers and lenders who are actually a good fit for each other. This helps reduce the risk of mortgage fraud. Because the entire system will be operated on with Blockchain technology, everything is extremely transparent. Lenders will be able to perform checks on potential borrowers before lending, while also seeing when exactly a re-payment has been made. Everything can be done in real time, so it reduces the risk of borrowers not paying back their loans.

And with that, the BIock66 project is set to completely disrupt the mortgage industry, helping connect borrowers and lenders worldwide. This excess of available borrowers and lenders will help drive down prices worldwide and enable first time borrowers and other creditworthy people to receive the mortgages that they deserve.

Author: Gustafio