"The global crypto market has surged past $3 trillion, and an estimated 45% of Gen Z and Millennial investors many of whom are future homebuyers own crypto, Leslie Gillin, Newrez's chief commercial officer, said in a statement. An increasing number of consumers include crypto in their investment portfolios, while major financial institutions are deepening their involvement in crypto assets, supported by key regulatory developments, added Baron Silverstein, president of Newrez. On the regulatory front, Federal Housing Finance Agency (FHFA) Director Bill Pulte said in June that Fannie Mae and Freddie Mac will begin preparing for the use of crypto in single-family mortgages."
"Proponents argue that assets such as Bitcoin or Ethereum could be used as collateral to obtain fiat-currency loans for real estate purchases, potentially expanding access to credit for borrowers who may not qualify under traditional underwriting standards due to income or credit constraints. Skeptics, however, point to the volatility of crypto markets, which can trigger margin calls and force borrowers to post additional collateral if asset values fall. Broader adoption has also been limited by an evolving regulatory framework."
"We believe that now is the right time to prudently integrate eligible crypto assets into modern mortgage lending enabling consumers to preserve investments while accessing innovative financing solutions, Silverstein said. Newrez recently invested in mortgage technology firm HomeVision and is partnering with the company to develop an artificial intelligence (AI)-powered underwriting platform. Newrez claims to be the first top-25 mortgage lender in the U.S. to accept crypto assets in the mortgage process without liquidation requirements."
Global crypto value exceeds $3 trillion and roughly 45% of Gen Z and Millennial investors own crypto. Consumer adoption and institutional involvement are rising alongside regulatory movement toward mortgage use of crypto, with FHFA prompting preparations at government-sponsored enterprises. Proponents view Bitcoin and Ethereum as potential collateral to broaden real-estate loan access for borrowers who may not meet traditional underwriting. Skeptics warn that crypto volatility can trigger margin calls and require extra collateral. Newrez accepts eligible crypto in mortgage processes without liquidation requirements, invested in HomeVision, and is developing an AI-powered underwriting platform.
Read at www.housingwire.com
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