Investment firm Ranieri Solutions has partnered with blockchain firm Symbiont to systemically improve all aspects of the mortgage industry using Symbiont’s platform.
Founded by Wall Street veteran Lewis S. Ranieri, Ranieri Solutions provides its clients with an integrated investment platform, offering complementary solutions across the real estate, fixed income, consumer finance and corporate finance sectors.
Based in New York City, Symbiont is developing products in smart contracts and distributed ledgers for use in capital markets. Financial institutions and governments are working with the company to develop new business lines, increase transparency, reduce risk, and save costs. Three of the founders of Symbiont are also founders of Counterparty, a financial platform for creating peer-to-peer financial applications on the bitcoin blockchain.
The two companies will work together to allow mortgages to be grouped into transparent pools that can be securitized. Symbiont said its expertise in deploying enterprise blockchain networks coupled with Ranieri’s deep knowledge of the mortgage market will allow them to transform the mortgage industry.
Ranieri, considered the “father” of mortgage-backed securities for his pioneering role in their emergence in the 1970s, said that blockchain technology was an opportunity to modernize a region of the financial world that has not kept up with the rest of the industry.
“The mortgage market, despite significant efforts, continues to lag behind from a technological standpoint creating inefficiencies that impact mortgage loans throughout their life cycle,” Ranieri said. “By partnering with Symbiont, a proven blockchain pioneer, Ranieri Solutions believes that together we can implement this transformative technology to bring necessary efficiencies, transparency, and security to the mortgage markets.”
Mark Smith, CEO of Symbiont, said that when Symbiont was founded, it was his dream and vision to develop decentralized technology solutions that could solve the root problems that were at the heart of the financial crisis.
“Blockchain and smart contract technology is proving to be that solution,” Smith said. “To solve these problems alongside Lewis Ranieri, the genius behind modern securitized markets and his team is a once in a lifetime opportunity for me personally and a seminal moment in the history of Symbiont as an organization.”
In December 2017, Symbiont partnered with investment giant Vanguard Group and the Center for Research in Security Prices to use blockchain technology to simplify index data sharing between index providers and market participants.
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