Why a $778 Billion Mortgage Company Is Now Paying Close Attention to Bitcoin and Ethereum

Newrez Embraces Crypto Assets for Mortgage Consideration

As homeownership becomes less attainable for younger generations, national mortgage lender Newrez believes that cryptocurrencies such as Bitcoin and Ethereum could help change the landscape.

Newrez, which managed a portfolio of 3.7 million loans totaling $778.3 billion last year, recently announced plans to factor in these digital currencies when evaluating mortgage applicants. The company claims to be the first major U.S. mortgage provider to take this step.

This initiative means that Newrez will now consider Bitcoin and Ethereum as part of a borrower's financial reserves, similar to how cash or stocks are typically reported on mortgage applications.

Targeting the Next Generation of Homebuyers

In a conversation with Decrypt, Newrez President Baron Silverstein explained that this move is designed with Gen Z in mind. He pointed out that younger buyers are increasingly holding crypto assets as part of their investment portfolios, more so than previous generations.

“We want to support those purchasing their first home,” Silverstein stated.

Discounting Crypto Values Due to Volatility

When assessing digital assets, Newrez will apply a discounted value—or “haircut”—to Bitcoin and Ethereum, reflecting their price volatility. Silverstein did not specify the exact discount rate but emphasized that the company takes market fluctuations into account.

Regulatory Attention and Concerns

Newrez’s foray into digital assets caught the attention of Bill Pulte, director of the U.S. Federal Housing Finance Agency, who acknowledged the move on X. In June, Pulte instructed the agency to begin studying how crypto holdings might affect mortgage eligibility in the United States.

“It begins,” Pulte commented.

This directive has raised concerns among lawmakers, including Senator Elizabeth Warren, who cautioned that incorporating crypto into mortgage assessments could introduce new risks for consumers and potentially threaten the stability of the housing and financial sectors.

Program Limitations and Future Possibilities

Silverstein noted that, for now, borrowers cannot use digital assets directly to make mortgage payments, though this could be reconsidered in the future. Additionally, only crypto held with U.S.-regulated exchanges, fintech platforms, brokerages, or nationally chartered banks will count toward mortgage qualification. Assets stored in self-custody wallets, such as MetaMask or on personal devices, are not eligible.

According to Newrez, digital assets must be held with approved custodians to be considered. Crypto stored in personal wallets or on hardware devices will not be recognized in the application process.

Program Details and Future Expansion

The program’s FAQ indicates that the offering will launch in February for “non-agency products,” which are separate from loans backed by Fannie Mae or Freddie Mac. Newrez’s approach also includes stablecoins that are backed by cash.

Silverstein added, “We plan to keep reviewing and potentially expanding our guidelines, the types of crypto assets we accept, and the list of approved custodians. This is just the beginning, and we’ll continue to adapt as we learn.”