Built On Sand — Fraud in Mortgages

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Mortgage Fraud

Since the advent of mortgages, there has been mortgage fraud.

Fraud to the tune of billions of dollars.

It will interest you to know that the level of mortgage fraud has continued to experience an unprecedented increase over the last few years, and there are various reasons as to why this is so.

The difficult economy following the Great Recession made it easy for people to fall victim of fraudulent mortgage schemes. Most times, people who are looking for ways to escape losing their mortgaged properties, take desperate measures, thereby leading them to look for seemingly profitable financing options. The truth is, many of the financing options usually have fraud hidden in them, and if people are unaware of the dangers involved, they can easily become victims of mortgage fraud.

There are various schemes employed by corrupt and fraudulent companies to milk people of their money and further lead them into more debt. Some of these schemes include mortgage refinancing/reduction, foreclosure rescue, predatory lending, appraisal fund, advance fee fraud and many more. The schemes keep increasing and getting more advanced with the aid of improved technology, which makes it difficult to put a check to the excesses and make mortgaging as safe as possible.

Another important reason why there is an increase in the level of mortgage fraud is the system’s total lack of transparency, and this makes it easy for the propagation of mortgage fraud, as you do not see or know what is going on with the processes.

Blockchain Solution

With the help of blockchain, a decentralized technology, as well as with the help of smart contracts, an “if-then” software construct, a company like Block66 has a strong arsenal to deal with the various challenges in the mortgage industry that have contributed to the industry’s high level of fraud.

Furthermore, with the aid of smart contracts, the need for human input in terms of legalities is eliminated, and as such, the smart contract serves as the broker/lawyer and ensures when a contract is activated, there are no defaulters. The blockchain solution seems to be the only feasible solution to the excesses of mortgage frauds.

Mortgage Ecosystem

The Block66 ecosystem incorporates many APIs to verify is a borrower is fit for a mortgage.

lenders can only handle mortgages that meet their pre-determined guidelines

An important clarification is that Block66 also determines if the borrower is fit for a specific lender. The approved lenders pay Block66 in BNET for its service and the loan is then created through a smart contract. The mortgage is split up into Proof-of-Loan (PoL) tokens that can be exchanged, only between appropriate lenders, on the platform.

So why buy B66 tokens? What are they?

Great question.

The tokens (B66) being made available for sale at TGE can be thought of as metaphorical oil wells that generate BNET tokens (BNET).

B66 is the oil well. BNET is the oil (fuel). The BNET fuel is sold for access and the proceeds go to the B66 token holders who have activated their tokens with our special fountain smart contract.

In return for being part of the oil well, B66 holders are rewarded in ETH, in proportion to their ownership of all B66 tokens. If you hold 10% of B66 tokens, for example, you get 10% of the ETH generated by selling BNET, which lenders must buy to conduct mortgages on the platform.

Earn ETH with B66

Block66 Official Telegram: https://t.me/block66_Official

Find out more at: https://block66.io/