Bacon Protocol offers industry-first ‘NFT mortgages’
Read the full article by Sam Bourgi here
Blockchain technology and smart contracts are helping to expand the residential mortgage market beyond the grip of big banks and governments.
Key Points:
NFT morgages range from 1.5% to 3.1% on properties in four U.S. states, the disclosed Wednesday. y comparison, the average mortgage rate in the United States ranged from 2.27% to 2.98% for the week ending Nov. 10, according to Freddie Mac. The 30-year fixed-rate mortgage peaked at 3.14% on Oct. 28.
Bacon’s decentralized mortgage platform, which launched in September, gives homeowners the ability to exchange a lien on their property for an NFT that represents a portion of its value. In May of this year, blockchain startup Propy became the first company to launch a real estate NFT, offering a tangible use case for smart contracts in the residential housing market. There is a key difference between the two protocols Propy auctions physical apartments as NFTs, Bacon is minting the mortgages that finance residential properties.
LoanSnap, who uses artificial intelligence to decide on someone’s eligibility for a mortgage making them “smart loans”. LoanSnap is the home to the Bacon Protocol NFTs.
2008 was a really tough time for the entire world. The crisis was caused mainly by the subprime mortgage meltdown, now today with how the housing market has risen in value many are worried the same may repeat. The problem spurred from banks and other financial agencies allowing people to take out loans they really could not afford. In turn these agencies would also receive commissions for granting the loans.
LoanSnap or Smart Loans could change the landscape of the entire mortgage industry as we know it.
Bacon Protocol co-founder Karl Jacob said “the mortgage industry is not meant to be replaced, but built upon with new technology,” adding that “NFTs and smart contracts fit perfectly into the lending world as they are similar to many legal arrangements in real estate, with upgraded technology and features.”