In a sign of the increasing mainstream clout of cryptocurrency, mortgage lender Newrez announced this week that it’ll start letting borrowers count their crypto assets when seeking a loan.
In a statement, the company — which describes itself as a “top five mortgage lender and servicer” — said it will allow would-be homebuyers 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 beginning in February.
“Today, 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,” Newrez President Baron Silverstein said in the statement. “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.”
The best-known form of cryptocurrency is Bitcoin, which has been around for many years and has gained increased mainstream acceptance — including from major financial institutions and real estate companies. However, there are scores of other, lesser-known versions.
Some investors have made significant amounts of money from cryptocurrency, but because the sector is new and fast-evolving, lenders typically don’t include those investments in their overall financial picture of potential borrowers, thus reducing available loan sizes for those borrowers.
Newrez’s new offering seeks to change that, with the statement adding that, in the past, would-be borrowers usually 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 requiring liquidation.”
“At Newrez, we’re committed to meeting consumers where they are. Today, the global crypto market has surged past $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 possible to make home happen and this innovation marks yet another step in creating new pathways to homeownership, giving consumers flexibility and control.”
