Newrez will now accept eligible cryptocurrency holdings as qualifying assets in its mortgage underwriting process starting in February. This move aims to expand access to home loans for crypto holders, recognizing Bitcoin, Ether, spot ETFs, and stablecoins. Valuations may be adjusted for market volatility, and borrowers must pay closing costs in US dollars.

US regulators are considering the role of crypto in mortgage underwriting following Newrez’s decision. The FHFA instructed Fannie Mae and Freddie Mac to develop proposals for including digital assets in risk assessments without converting to USD. Senator Cynthia Lummis introduced the 21st Century Mortgage Act to address housing affordability challenges for young Americans holding digital assets.

While still limited in scope, some borrowers are already using crypto-backed financing for real estate purchases without selling their assets. Mauricio Di Bartolomeo, co-founder of Ledn, mentioned that Bitcoin holders have utilized their assets to finance real estate transactions. This alternative financing method allows borrowers to use BTC or ETH as collateral.

Read more at Cointelegraph: US Lender Newrez to Recognize Crypto Holdings in Mortgage Qualification