In a sign of cryptocurrency’s increasing mainstream influence, mortgage lender Newrez announced this week that it will start letting borrowers count their crypto assets when applying for a loan.
In a statement, the company — which describes itself as a “top five mortgage lender and servicer” — said it will offer potential homebuyers the ability to use their crypto assets to qualify for a mortgage without having to liquidate those assets. The statement adds that Newrez is the first major lender to roll out such an offering, which should be available from February.
“Today, more and more consumers are incorporating crypto into their investment portfolios, while major financial institutions are deepening their involvement in crypto assets, supported by significant regulatory developments,” Newrez President Baron Silverstein said in the statement. “We believe now is the right time to prudently integrate eligible crypto assets into modern mortgage lending – allowing consumers to preserve their investments while gaining access to innovative financing solutions.”
The best-known form of cryptocurrency is Bitcoin, which has been around for many years and has gained increasing mainstream acceptance – including from major financial institutions and real estate companies. However, there are plenty of other, lesser known versions.
Some investors have made significant amounts of money from cryptocurrency, but because the industry is new and rapidly developing, lenders typically do not include these investments in their overall financial picture of potential borrowers, narrowing the loan sizes available to those borrowers.
Newrez’s new offering aims to change that, with the statement adding that in the past, potential borrowers have typically had to sell crypto assets when applying for a loan. The statement adds that Newrez “will recognize eligible crypto holdings for income estimation and asset verification without the need for liquidation.”
“At Newrez, we want to meet consumers where they are. Today, the global crypto market has surpassed $3 trillion, and an estimated 45 percent of Gen Z and millennial investors — many of whom are future homebuyers — own crypto,” Newrez Chief Commercial Officer Leslie Gillin added in the statement. “Our mission at Newrez is to do everything we can to make home possible and this innovation marks yet another step in creating new pathways to homeownership, giving consumers flexibility and control.”
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