Block66 introduces the first platform where lenders can access a marketplace of vetted borrowers looking for mortgage finance. This marketplace is public, transparent, and highly automated, so lending is streamlined, with lower costs, and lower risks. Each loan is represented as a pool of “proof of loan” (PoL) tokens that can be individually resold to investors, providing lenders with liquidity, and empowering a diverse pool of investors.
Block66’s blockchain and smart-contract technology makes it possible for lending contracts to be tokenized, and the flexibility and liquidity provided by Block66’s asset-backed tokens will open the mortgage market to a more diverse pool of investors. Each loan has its own smart contract, responsible for minting, selling, and tracking ownership of ifs PoL tokens. Block66’s cyptographically-secured smart contracts ensure the market remains public, transparent, and tamper- proof.
A digital trust fund (DTF) ensures the safety of the underlying loan agreement, represented digitally as PoL tokens, by acting as custodian for the loan and collecting repayments – including accrued interest. Strict laws regarding trusts funds protect each mortgage even in the event of bankruptcy meaning that no party, including Block66, the broker, or anyone else can claim it.
Block66 infrastructure will be implemented as a decentralized application (dApp), and run on the Ethereum network. Brokers will be able to list clients as lending opportunities on the platform, after being thoroughly vetted by Block66 through proof of residence, credit reports, license verification, and criminal record checks. Proprietary software, as well as a network of partners, will be used for this purpose. Based on a personal risk/reward ratio, lenders can then select an investment from the offered mortgages to add to their portfolio.
At this point, Block66 will present the broker with explicit, comparable fees, and interest rates with which to advise the borrower.
Block66 software and API integrations will automatically verify the majority of files, limiting the need for an underwriter. These same checks will go a long way toward reducing incidences of mortgage fraud by flagging contentious applications. When dealing with more complex mortgages, virtual underwriters will validate documents in exchange for Block66 Network Tokens (BNET). Token mechanics are explained in more detail further on.
Over time, the Block66 team will look to make distribution as far-reaching as possible for PoL tokens, and the Block66 ecosystem. To achieve this the team will partner with exchange relayers, such as 0x, as well as partnering directly with exchanges. The team will also take advantage of the TPL protocol to help manage Block66’s regulatory exposure.