Automation of control over mortgage, leasing and other loans and the creation of a decentralized market for the sale of overdue loans based on the Fusion blockchain
The report of the Federal Reserve Bank (FRB) reports that the total debt of US households reached $ 13.86 trillion.
Most of the debt (68%) is made up of mortgages, the total amount of which reached $ 9.41 trillion.
Mortgage debt grew by $ 139 billion in the fourth quarter, and by $ 402 billion during the year.
In second place — educational loans — $ 1.38 trillion, 11%
the third — car loan debt 9%
on the fourth — credit card debt of $ 834 billion, 6%
“A commercial offer with a limited validity period and automatic rollback in the absence of payment” is a good way to increase efficiency for the banking infrastructure, for example, the field of credit operations.
Mechanism of work
The bank will be able, for example, to provide the client with leasing loans for equipment, and if the client misses the payment, the “equipment ownership token” will be returned to the bank’s wallet.
The same applies to real estate lending operations, the bank creates a property token for the house and sends it to the wallet to customers on the basis of a rollback in case of non-payment of monthly payments.
Thus, the client will have a feeling of owning a house in his wallet!
And this is true, because after full payment of the loan, the “home ownership token” remains with the owner, and the bank continues to store collateral documents for the house and the bank is the guarantor of the authenticity of the “ownership token”, the bank stores the data of the “ownership token” in its card file.
Thus, then the bank acts as a custodian for the owner of the house and provides him with a service for storing documents confirming the owner’s right to this property. And in case of loss of access to the wallet or theft of the “token at home”, the owner can come to the bank’s office and restore the “token at home”, get a duplicate with a different number, and the “lost token at home” will be okuled by the bank.
Further, in the case of a house sale, this will pass through the bank’s trading platform connected to the Fusion blockchain, in which there is a “quantum swap” mechanism in which the house owner will act as a bank client, and on the other hand there will be another client, for example this the same bank and they simply enter their data in the form of “quantum swap trading contract” and make a purchase and sale transaction and as a result of this, the data of the new owner will automatically be recorded in the “home ownership token”.
Thus, this Fusion blockchain allows you to carry out a real estate transaction without visiting notaries, realtors and lawyers. And this will save money to participants in the transaction.
In addition, this will allow the bank to earn additional funds that were previously earned by these notaries, realtors and lawyers for real estate transactions.
The commission of the bank can be significantly less than the services of these agencies, and the real estate sale transaction can take place almost instantly and is 100% guaranteed to be paid because it controls and implements the Fusion Quantum Swap blockchain network mechanism, which only works if all that is assigned amount.
Fusion blockchain network as a structure for Banking Alliances
If the buyer is not a client of the bank, then
1). he can easily become one after appearing at bank branches and the bank will authorize the buyer, write down passport data, write down the Universal Short Account Number (USAN) on the Fusion blockchain network, or another client’s crypto wallet number and this will cost the client nothing and will save time and money avoiding communication with a lawyer, notary and realtor.
2). Banks can interact through a common trust network of the Fusion blockchain in which the “ownership tokens” of authorized banks will be verified and this will allow customers from other authorized banks to complete sales of “ownership tokens” without visiting a bank branch that stores paper originals of real estate ownership documents.
“A commercial offer with a limited validity period and automatic rollback in the absence of payment” is an interesting tool for the banking system. To understand this, I will give you an example.
For example, any blockchain will always tell bankers about the compatibility of their ecosystems, and all other ecosystems will say the same thing.
But if you tell the bank about a business trick that can return a “commercial offer”, “credit offer” or “possession token” from the client’s wallet to the bank if the client doesn’t pay back, then the chances of understanding the uniqueness of the offer will be higher.
Case for the bank
The bank creates a loan offer, for example, based on the ERC721 token (NFT).
Token ERC721 (NFT) refers to the so-called non-fractional tokens, it is sold as one whole monolithic part and cannot be divided into many parts as bitcoin or stable coin and this property is convenient for tokenizing things, real estate, paintings, everything that is sold as a whole part.
Having made a “home ownership mortgage token”, the bank can send it to its client’s wallet. And if the repayment schedule of the mortgage loan is not respected, the “mortgage token of home ownership” will automatically return to the banks from the client’s wallet.
Such an example has business benefits understood by the bank.
At the same time, we can add that other blockchain systems do not know how to return unpaid offers to the bank and offer to hide the display in the client’s wallet at the wallet interface level (but if someone creates another interface, all offers will be visible in the wallet,
but in our case we are talking about the physical return to the bank of the “ownership token” from the client’s wallet in case of stopping the payment of the credit line, then the “ownership token” (machine, house, equipment) will return to the bank.
This scheme automates the control of the schedule of credit crypto payments and automates the return to the bank of collateral property (“ownership token”) from customers with overdue payables.
Automation is carried out on the basis of the “commercial offer with a limited validity period and automatic rollback in the absence of payment” mechanism.
The Bank creates a loan offer, for example, on a mortgage, leasing and any other credit line:
1. draws up a loan transaction in a “credit token of ownership” which contains the loan conditions, repayment schedule and documents on collateral by the borrower
2. the bank sends a “possession credit token” to the client’s wallet
3. “credit ownership token” has a mechanism for automatic return to the bank if, for example, the loan repayment schedule is not met
4. in this case, overdue credit indebtedness arises and the bank can send a “credit token of ownership” for example, to the market, to the platform for the sale of overdue credit debt
5. or offer “distressed” owners who are on the verge of losing the right to buy back their debt property to offer compensation for its quick sale
Today, banks sell their overdue loans in bulk to collection agencies and this is not beneficial for the bank.
But, having a “possession token” with the function of rollback to the bank in case of late payment, the bank can put up these “past due loans” for sale at more favorable prices, for example, on the open market for past due loans which can be organized on the open decentralized Fusion platform.
The platform is decentralized and open 24/7 and provides access to an open global market for the sale and purchase of “credit debt” for all banks from all over the world.
At which investment funds or private brokers can choose interesting objects in different countries of the world at lower prices than in the regular market.
And banks will receive more advantageous offers, in contrast to wholesale sales to collection agencies.
As a result, banks will be able to increase their efficiency in the credit sector of the banking economy, earn extra money by providing custodian services, sell accounts payable at better prices, and this is a good reason for banks to deal with the Fusion blockchain and become members of the Bank Alliance in the Fusion network.
Credit Token of Ownership ”with a mechanism of automatic rollback to the bank
1. automates control over the schedule of credit payments
2. automates the accounting of arising indebted real estate
3. will automatically offer the client of the bank a repayment option, for example, through compensation for a quick sale
4. or otherwise, the bank may send an “overdue loan debt token” to the collection agency market
For example, about 6.5 thousand collection agencies operate in the United States, which buy bulk portfolios of “bad debts” from banks, insurance companies and utility providers.
5. “Credit ownership token” with a rollback mechanism to the bank, allows banks to exclude intermediaries when dealing with overdue debts
6. create an international market for overdue consumer debt
7. sell debt at better prices
Automation of the solution of problems of credit debt and the creation of the Banking Alliance was carried out taking into account the unique capabilities of the Fusion blockchain
About Fusion
Fusion Foundation is a non-profit organization building the next generation infrastructure for decentralized global finance. By providing innovative companies and developers with the open source technology they need to build peer-to-peer time and value-based applications, the world will enjoy financial transactions that are more accessible, efficient and transparent than previously possible. Fusion’s seasoned team of industry veterans led by Founder and CEO DJ Qian, a blockchain pioneer who previously launched two top 20 global blockchain projects (VeChain and QTUM), is working to collaborate with financial institutions, cryptocurrency companies, businesses, peer-to-peer lenders, third-party app developers, academia, and the broader blockchain community. By providing the foundation that enables different cryptocurrency tokens, digital assets, off-chain values, and data-sources to be created and exchanged between the Fusion blockchain, other blockchains and financial systems, Fusion is moving ever closer to a globally accessible system for the free exchange of values. Visit www.fusion.org to learn more about Fusion and its partnership program.
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