Decentralized systems and methods for managing loans and securities
Methods, systems and apparatuses, including computer programs encoded on computer storage media, are described herein to management transactions relating to loans and securities via a distributed ledger. The platform may allow for authorized users to create, validate, and monitor payments, contractual terms, and lender/borrower obligations, and may permanently record all validated transactions to the distributed ledger.
1. A method comprising:
receiving, by a server in communication with a distributed ledger system via a network, loan information associated with a loan relating to a lender and a borrower, the loan information comprising:
a total principal amount of the loan;
a lender portfolio relating to the lender and associated with the distributed ledger system; and
a borrower portfolio relating to the borrower and associated with the distributed ledger system;
creating, by the server, a loan token for use with the distributed ledger system,
wherein the loan token comprises a plurality of loan token units, and
wherein the loan token is associated with loan token information comprising:
the loan information;
a unique ID; and
a total number of the plurality of loan token units;
transmitting, by the server, the loan token units to an escrow portfolio associated with the distributed ledger system,
wherein the escrow portfolio is associated with required signers comprising: the borrower, the lender, a servicer and a validator;
creating, by the server, a first distributed ledger transaction to cause the distributed ledger system to transfer the loan token units from the escrow portfolio to the lender portfolio, and
wherein transferring the loan token units are transferred from the escrow portfolio to the lender portfolio, based on a determination that all of the required signers have signed the first distributed ledger transaction;
receiving, by the server, payment information relating to a loan payment made by the borrower, the loan payment information comprising the unique ID and a principal payment amount;
searching, by the server, the distributed ledger system, based on the unique ID, to determine one or more owner portfolios, each owning a portion of the total number of the loan token units;
determining, by the server, for each of the owner portfolios, a percentage token ownership, based on the portion of the loan token units owned by the respective owner portfolio and the total number of the loan token units;
determining, by the server, a disbursement amount for each of the owner portfolios, based on the principal payment amount and the respective percentage token ownership;
creating, by the server, second distributed ledger transactions to cause the distributed ledger system to transfer the respective disbursement amount to each of the owner portfolios; and
creating, by the server, third distributed ledger transactions to cause the distributed ledger system to transfer a number of the loan token units from each of the owner portfolios to the borrower portfolio, based on the respective disbursement amount transferred to each of the owner portfolios.
2. A method according to claim 1 , wherein the plurality of required signers further comprises an originator.
3. A method according to claim 2 , further comprising:
upon said transferring the loan token units from the escrow portfolio to the lender portfolio, removing the originator from the plurality of required signers.
4. A method according to claim 1 , wherein said transferring the loan token units from the escrow portfolio to the lender portfolio is further based on a determination that a payment has been received from the lender.
5. A method according to claim 1 , further comprising:
creating a servicing token for use with the distributed ledger system, the servicing token associated with the loan information and a unique ID; and
transferring the servicing token to a servicer portfolio associated with the servicer and relating to the distributed ledger system.
6. A method according to claim 5 , wherein the servicing token allows the servicer to service the loan and earn associated servicing fees.
7. A method according to claim 1 , further comprising:
determining that all of the loan token units have been transferred to the borrower portfolio;
recording a termination of the loan in the distributed ledger system; and
retiring the loan token.
8. A method according to claim 1 , wherein the distributed ledger system comprises a blockchain system.