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