Canopy Financial Technology Partners and Liquid Mortgage officials said the firms are partnering to develop a digitally native mortgage solution aiding loan investors and securities issuers.
The collaboration involves integrating Canopy’s due diligence product with the Liquid Mortgage digital asset dynamic, attaching due diligence reporting and data directly to a loan-backed digital asset on a blockchain. The reporting remains with the digital asset in a verifiable and transparent format for the life of the loan.
“This partnership is a giant first step in the migration toward a true digitally native mortgage,” Canopy Financial Technology Partners CEO John Levonick said. “This solution gives loan investors, and all subsequent assignees, access to verified and timely data, for the entire lifecycle of the asset…diligence by a third-party review firm conducted once, but accessible to all future parties.”
The partnership will also yield a feature in which Liquid Mortgage enables borrower payment tracking immediately upon digital asset creation, officials indicated, providing investors with enhanced timely loan performance data.
“Our ultimate goal for this partnership is to shorten timelines for investors as loans are traded and securitized,” Liquid Mortgage
Founder and CEO Ian Ferreira said. “As we reduce friction and increase transparency in the loan market, we believe these cost savings can eventually be passed along to the borrower.”
Canopy and Liquid Mortgage officials have estimated they will have the first loan-backed digital assets with full due diligence created in the second quarter of this year.