Ranieri Solutions was created by Lewis Ranieri, a former bond trader at Salomon Brothers, who first began developing and using MBS securities back in the 1970s - and will now work with the Symbiont, Assembly platform for smart contracts.
Ranieri, who refused to give an interview for this article, said in a statement that the mortgage market "continues to lag behind the technological point of view, creating inefficiencies that affect mortgages throughout their life cycle."
"By partnering with Symbiont, a proven expert in blocking equipment, Ranieri Solutions believes that together we will be able to implement this transformative technology to ensure the necessary efficiency, transparency and security in the mortgage market," he said.
Mark Smith, CEO of Symbiont, said in an interview that the mortgage market is "great for blocking."
First, he said: "You have all these disparate participants" - with reference to banks, borrowers and brokers - along with companies such as Fannie Mae, Freddie Mac, who will benefit from doing business on a single network.
He continued to argue that the Symbiont platform can allow grouping of mortgage loans into "very transparent pools that can be securitized."
And transparency is the key. Mortgage securities were accused of triggering a financial crisis of late 2000, as the "undesirable" status of some loans was hidden in large opaque pools. These pools received investment grade ratings, despite the hidden risks.
Indeed, Ranieri was among those who were accused of having created a scene for this crisis. Smith said that this practice began long before Ranieri participated in the creation of MBS.
Smith continued to argue that he views the regulatory response to the crisis as a mistake - "a large doubling of centralization," which forced the country to repeat history.