Liquidity Spot, Inc.
Westlake VIllage, CA 91361, US
We are an online marketplace which is a two sided exchange. On our supply side, we serve institutional investors who have excess or idle cash who seek higher returns than comparable cash equivalent returns. On the demand side we serve independent mortgage lenders who need short term funds to finance the mortgages they originate from time of funding until sale to the permanent loan investor.
Our online exchange makes it simple for the mortgage lender to upload a data file of collateral that they wish to use to obtain financing. The loan data and the collateral trust receipt are uploaded into our proprietary exchange system, X-Spot™. Once the lender submits the collateral for financing bid, X-Spot™ validates the data through a network of internal and third-party data providers. We also incorporate CoreLogic’s LoanSafe product which appends to the collateral data file a Collateral and Fraud Risk score. These scores as well as any of the collateral data is searchable and filterable through X-Spot™.
On the supply side, an investor simply funds a trust account and completes one or as many bid profiles they desire. Bid profiles are simplistic yet they have the ability to be as granular as the investor desires. These profiles determine which collateral is eligible for a bid from the investor. The investor bids a desired participation percentage, a cash advance percentage and an interest rate. All of this can be done globally or at an individual transaction level.
X-Spot uses proprietary algorithms to match credit profiles and participation bids. The lender is provided three choices – optimize for cash advance, optimize for interest rate or utilize X-Spot’s proprietary optimization. We also have a third party who provides first loss coverage on the loans providing further credit protection for the investors. On a risk return basis, our current annual yields of ~3% to the investor are far superior to other liquid cash alternative in the marketplace.
Products / Services
Liquidity Spot’s X-Spot exchange platform
X-Spot is a disruptive technology exchange platform which provides secure interaction among exchange participants. X-Spot’s proprietary algorithms and data validation tools provide pricing and credit data enabling participants to transact in confidence. Liquidity Spot provides all fulfillment and administration of transactions for the parties.
With X-Spot, institutional investors can simply and safely convert low yielding, liquid cash into higher yielding, liquid and secure interests in mortgage warehouse loans.
With X-Spot, non bank mortgage originators can access liquidity at competitive rates and terms without the friction and restrictions traditional banks offer.
Our technology disrupts and disintermediates the legacy bank lending model and is poised to attack other asset categories and classes as we successfully conquer the safer, more liquid and secured market of financing non bank originators (B2B lending) secured by real estate.