Mortgage Lender Newrez Embraces Crypto Assets in Loan Decisions

Core Viewpoint - Newrez is set to allow certain cryptocurrency holdings to be counted as qualifying assets in its mortgage underwriting process, potentially increasing access to home loans for borrowers with digital assets [1][4]. Group 1: Policy Change Details - The new policy will take effect in February and will apply to Newrez's non-agency products, including home purchases, refinancings, and investment properties [3]. - Eligible crypto holdings will include Bitcoin, Ether, spot exchange-traded funds backed by these assets, and U.S. dollar-pegged stablecoins, allowing borrowers to use these assets without liquidating them [4][8]. - The assets must be held with U.S.-regulated crypto exchanges, fintech platforms, brokerages, or nationally chartered banks, and valuations may be adjusted for market volatility [5]. Group 2: Market Context and Implications - The decision reflects changing investor behavior, particularly among younger buyers, with about 45% of Gen Z and Millennial investors holding cryptocurrency [6]. - This move aims to broaden access to homeownership for demographics that have faced challenges in entering the housing market [6]. - The policy aligns with ongoing discussions among U.S. policymakers regarding the integration of cryptocurrencies into mortgage risk assessments [7][8].