Liquid Mortgage Raises Seed Round Funding to Further Develop Its Blockchain Technology for the Future of the Mortgage Industry

Rhea-AI Summary

Liquid Mortgage has announced a strategic partnership and capital raise from Redwood Trust (NYSE: RWT), marking a significant step in developing blockchain technology for the mortgage industry. The partnership aims to enhance loan data reporting and delivery, utilizing nearly $300 million of loans on a test platform. With funds from this capital raise, Liquid Mortgage plans to expand its technology and team, promoting a more efficient mortgage ecosystem. Both companies are focused on actionable blockchain applications to improve industry transparency and efficiency.

Positive

• Strategic partnership with Redwood Trust to enhance mortgage ecosystem.
• Capital raise allowing for technology development and team expansion.
• Utilized nearly $300 million of loans on the test platform.
• Focus on actionable blockchain applications for improved transparency.

Negative

• None.

DENVER, April 19, 2021 /PRNewswire/ -- Liquid Mortgage announced today it has raised capital from and entered into a strategic partnership with Redwood Trust (NYSE: RWT).  The capital raise and partnership are the culmination of a months-long engagement, in which Redwood Trust tested Liquid Mortgage's technology and developed an actionable strategy to build a future-ready mortgage ecosystem.  The partners share a common mission of utilizing blockchain technology within the current market infrastructure, rather than reinventing the mortgage ecosystem overnight.

Liquid Mortgage is built on a public blockchain and intends to make loan data reporting and delivery faster and more efficient. While blockchain has long been circulated in the community as a promising solution to legacy mortgage infrastructure woes, the industry has yet to meaningfully adopt the new technology.  Liquid Mortgage and Redwood Trust have developed an actionable strategy and have placed nearly $300 million of loans on the Liquid Mortgage test platform.

Funds from the capital raise will allow Liquid Mortgage to further develop its technology and expand its team, in order to proliferate its solution to the broader mortgage ecosystem.

"The mortgage market, in many ways, is a "holy grail" for blockchain technology, but the complexities and nuances of the mortgage business have made it a very difficult nut to crack. Our view at Redwood Trust has been to use blockchain as a tool to help streamline and evolve the existing mortgage ecosystem. Liquid Mortgage is a partner who shares that philosophy and is focused on actionable uses and applications for blockchain technology to dramatically improve transparency, efficiency, and trust," said Fred Matera, Managing Director and Head of Residential at Redwood Trust.

"Ian Ferreira's background as a mortgage investor and understanding of the securitization and origination process has allowed Liquid Mortgage to envision an innovative blockchain solution for the mortgage industry. I'm personally excited to work with Ian, other industry professionals, and my colleagues at Redwood Trust to not only improve on what we have today, but potentially transform the industry going forward," concluded Matera.

Liquid Mortgage is enthusiastic about the strategic partnership with Redwood Trust.  Ian Ferreira, Founder and CEO, said, "Our working relationship with Redwood Trust over the past several months has been excellent.  We align on our view of the potential and go-forward implementation of blockchain and are thrilled to have Redwood as a partner and investor."

Liquid Mortgage and Redwood Trust intend to engage other market participants over the next several months, in order to build a robust ecosystem with Liquid Mortgage technology acting as a key component.

Contacts

Liquid Mortgage
Ian Ferreira, Founder & CEO
Email: media@liquidmortgage.io

About Liquid Mortgage

Liquid Mortgage, Inc. was founded in 2018 by former Portfolio Manager and Trader, Ian Ferreira, who recognized an opportunity to use blockchain technology in the mortgage market to increase transparency and efficiency in loans and securitizations.  Liquid Mortgage is a patent-pending digital asset and data platform designed to validate documentation, payments, and related loan-level information in a timely and immutable manner.  Its mission is to alleviate pain points and inefficiencies in the current system by introducing innovation into the post-origination process.  For more information, please visit LiquidMortgage.io.

About Redwood Trust

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly-traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood Trust, please visit our website at redwoodtrust.com or connect with us on LinkedIn, Twitter, or Facebook.

 

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SOURCE Liquid Mortgage, Inc.

FAQ

What is the partnership between Liquid Mortgage and Redwood Trust about?

Liquid Mortgage has formed a strategic partnership with Redwood Trust to develop blockchain technology that enhances the mortgage ecosystem.

How much capital has Liquid Mortgage raised?

Liquid Mortgage has raised capital from Redwood Trust to further develop its technology and expand its operations.

What technology is Liquid Mortgage focusing on?

Liquid Mortgage is focusing on using blockchain technology to improve loan data reporting and delivery within the mortgage industry.

How many loans have been placed on the Liquid Mortgage test platform?

Nearly $300 million of loans have been placed on the Liquid Mortgage test platform.

What is the stock symbol for Redwood Trust?

The stock symbol for Redwood Trust is RWT.