US mortgage lender Newrez to accept crypto for loan applications

U.S. mortgage lender Newrez will now recognize holdings of cryptocurrencies like Bitcoin and Ethereum as eligible assets when underwriting home loans, according to Cointelegraph. The policy applies to Bitcoin, Ethereum, spot crypto ETFs, and U.S. dollar-pegged stablecoins. This allows loan applicants to use their crypto holdings for asset verification and income estimation without having to sell them. The assets must be held at a regulated U.S. exchange or financial institution, and their volatility will be adjusted for during the evaluation process. However, all loan repayments and associated fees must still be paid in U.S. dollars. Newrez stated that the initiative aims to expand homeownership among younger generations, noting that approximately 45% of Gen Z and Millennial investors own cryptocurrency.