Mortgage lender Newrez announced this week that it will allow prospective borrowers to count their crypto assets when qualifying for a loan. According to the company, this is the first major financial institution to make such a move.
In a sign of cryptocurrencies’ growing influence in the mainstream, housing lender NewRes announced this week that it would allow borrowers to count their crypto assets when seeking a loan.
The company, which describes itself as a “top five mortgage lender and servicer,” said in a statement that it allows prospective homebuyers to use crypto assets to qualify for a mortgage without having to liquidate their assets. The statement added that Newrez is the first major lender to roll out such a service, which will be available from February.
“More consumers are now incorporating cryptocurrencies into their investment portfolios, while major financial institutions are deepening their involvement in crypto assets, supported by major regulatory developments,” Newrez President Baron Silverstein said in a statement. “We believe now is the right time to thoughtfully integrate eligible crypto assets into modern mortgage lending, allowing consumers to maintain their investment while accessing innovative financing solutions.”
The most well-known form of cryptocurrency is Bitcoin. Bitcoin has been around for many years and is gaining mainstream acceptance, including by major financial institutions and real estate companies. However, there are many other lesser-known versions.
Although some investors have made significant profits from cryptocurrencies, because the field is new and rapidly evolving, lenders typically do not include those investments in a potential borrower’s overall financial picture, thereby reducing the loan amount available to those borrowers.
Newrez’s new service aims to change this, adding in a statement that in the past, prospective borrowers typically had to sell their crypto assets when applying for a loan. The statement added that Newrez “recognizes eligible crypto holdings for revenue estimation and asset verification without the need for liquidation.”
“At Newrez, we are committed to meeting consumers where they are. The global crypto market is now over $3 trillion and rapidly growing, and an estimated 45 percent of Gen Z and Millennial investors, many of whom are future homebuyers, own cryptocurrencies,” added Leslie Gillin, chief commercial officer at Newrez, in a statement. “Newrez’s mission is to do everything possible to make housing a reality, and this innovation is another step in creating a new pathway to homeownership, giving consumers flexibility and control.”
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