Blockchain moves in on digital mortgage process
Blockchain technology company Block One Capital has signed a binding term sheet to acquire 40% of the equity of New York-based Finzat, a private entity aiming to develop a blockchain system to create a safer, more compliant digital mortgage process, according to the company.
Block One Capital is to invest $600,000 for up to 40% of Finzat, with an additional milestone payment of $800,000 upon Finzat meeting certain term conditions outlined in the term sheet.
Finzat's blockchain system aims to tackle of number of issues in the residential mortgage market, including transaction tracking, compliance, auditing and security.
"The Finzat system aims to permanently preserve loan information at the point of every decision and eliminates the need to recreate proof at the backend. The need for such a system is validated by more rigorous and standardized compliance regulations that are being phased in, as mortgage markets continue to move towards a mainstream paperless mortgage process," according to Block One Capital.
Both Block One Capital and Finzat intend on entering into a definitive agreement to determine specific terms and conditions of the acquisition. If no agreement is entered into, the term sheet will act as the definitive agreement.
"Finzat is one of the marquis teams and applications in blockchain that we have come across. The founder and his team bring an unprecedented level of acumen and experience to the table … we are thrilled to be making an investment in such a compelling business," said David Berg, CEO of Block One Capital, in a press release.