"Under the expanded guidelines, borrowers may use up to 25% of the current value of Bitcoin and Ethereum held in a Coinbase account, and up to 50% of the value of cryptocurrency mutual funds or exchange-traded funds (ETFs) held with traditional financial providers such as Fidelity Investments or Charles Schwab. Crypto-based funds are capped at a combined maximum of 50% of the total reserve requirement, and account statements must be dated within 60 days."
"John Wise, executive vice president of national production at Newfi, said the changes are designed to preserve liquidity for well-capitalized borrowers. This guideline enhancement gives brokers a practical solution for borrowers who are well-capitalized but want to preserve liquidity and avoid triggering taxable events, Wise said. Our recognition of cryptocurrency in the lending process is just another way we continue to innovate and invest in the non-QM lending space."
Newfi expanded lending guidelines to recognize cryptocurrency reserves for real estate borrowers. Borrowers may apply up to 25% of the current value of Bitcoin and Ethereum held in Coinbase and up to 50% of cryptocurrency mutual funds or exchange-traded funds held with traditional financial providers such as Fidelity or Charles Schwab. Crypto-based funds are capped at a combined maximum of 50% of the total reserve requirement, and account statements must be dated within 60 days. The changes aim to preserve liquidity for well-capitalized borrowers and help avoid triggering taxable events while accessing loan liquidity.
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