Mortgage Bond Contract PoC

BANKEX releases demo for creating mortgage bond contract

This is the demo for the BANKEX Mortgage Bond Contract Generator. Our application won first prize presented by jury member Vitalik Buterin at the Blockchain Hackathon in Kazan on August 28 this year. The application enables house owners and owners of other real estate assets to create a mortgage bond contract. In this demo, we’ll walk you through the steps you need to take to create mortgage bond contract, to modify it and to close the mortgage deal after all obligations have been fulfilled.

Transitioning mortgage contracts to the blockchain is an exciting advance in fintech. Currently, to initiate and change the interest rate on a mortgage, the signatures of the Borrower, Pledgee, and representatives of a Depository institution and the State Registry are required. This usually means all the concerned parties have to go to a local office at the same time to make it happen.

Obviously, this takes time and coordination &mdash it can be a stressful, drawn-out process. The BANKEX Mortgage Bond Contract Generator on blockchain is simple and enables borrowers, lenders and regulatory institutions to cooperate without having to meet in person. This way, a borrower can get a mortgage off the ground and all parties can manage it remotely. This saves time and money for everyone involved.

In this demo, the first step is to create a mortgage bond.

Where to start

In this demo, the first step is to create a mortgage bond.

Then the system will provide you with access to data on the participants involved in a deal. There are four participants: 

Pledgor — that's us here in the demo &mdash or most likely you &mdash the owner of the real estate object who wants to launch the mortgage to generate funds from a mortgage loan.

Pledgee -  this is the lender who will be the mortgage holder. In this demo, its just the lender but in the deployed application, there will be a list of banks and lending institutions who are BANKEX partners and the user will be able to choose from among their mortgage loan products. 

Depository institution - this the institution that will hold the mortgage you are creating if it is in its mortgage coverage. The creation of the Mortgage Bond Contract must also be confirmed by the Depositary.

State registry - the registration authority.

Once all participants agree on the conditions of the mortgage bond contract, click "deploy" to register this mortgage.

Then there will be changes in the interest rate. All the changes must be confirmed by every participant. 

After that, click "Finalize". When finalize button is pushed all the changes become confirmed.  

People who have access to the information chain may receive notifications regarding the obligations and collaterals at any moment.

Now that the mortgage is closed, the BANKEX Mortgage Bond Contract Generator will send us a notification that tells us the number of days and amount of money BANKEX has saved us with this next generation mortgage product. In this demo, we've made just a single mortgage, but for banking and lending institutions, the mortgage pool saving will be significant.

Here it shows  that a total of 215 days and a $1.5M dollars have been saved &mdash this of course of great importance to the performance of mortgage portfolios of banks. 

The code is available on BANKEX Github:

Congratulations! You just successfully created a mortgage bond.