Crypto Mortgage Revolution: Newrez Unveils Groundbreaking Policy to Accept Digital Assets for Home Loan Approval
In a landmark move for financial integration, US mortgage lender Newrez announced on February 3, 2025, that it will begin accepting cryptocurrency holdings as qualifying assets for mortgage underwriting, potentially transforming homeownership access for millions of digital asset investors without requiring liquidation.
Crypto Mortgage Policy Details and Implementation
Newrez plans to implement this innovative policy across its non-agency mortgage products starting in February 2025. The policy specifically covers home purchases, refinancing applications, and investment property financing. Consequently, this represents a significant departure from traditional mortgage underwriting practices that typically exclude digital assets.
The lender will recognize several cryptocurrency types for asset verification and income estimation purposes. Specifically, eligible assets include:
- Bitcoin (BTC) – The original cryptocurrency with the largest market capitalization
- Ether (ETH) – The native cryptocurrency of the Ethereum blockchain network
- Spot Bitcoin and Ether ETFs – Exchange-traded funds holding the underlying cryptocurrencies
- US dollar-backed stablecoins – Digital currencies pegged to the US dollar
However, Newrez established specific custody requirements for these assets. Borrowers must hold their cryptocurrency with US-regulated exchanges, fintech platforms, brokerages, or nationally chartered banks. This requirement ensures regulatory compliance and security standards.
The company also addressed cryptocurrency volatility concerns through valuation adjustments. Underwriting teams may adjust cryptocurrency valuations to reflect market fluctuations. Additionally, borrowers must still cover closing costs and make mortgage payments using traditional US dollars.
Demographic Drivers and Market Context
Newrez Chief Commercial Officer Leslie Gillin explained the demographic rationale behind this policy shift. Recent surveys indicate approximately 45% of Gen Z and Millennial investors own cryptocurrency. Therefore, this policy directly targets younger buyers who face significant homeownership challenges.
Traditionally, mortgage lenders require borrowers to convert cryptocurrency holdings into cash before considering them for loan qualification. This process often triggers capital gains taxes and eliminates potential future appreciation. Newrez’s new approach allows borrowers to maintain their cryptocurrency positions while accessing home financing.
The existing cryptocurrency mortgage market remains relatively limited. Several specialized platforms already offer crypto-backed home financing options. These services typically allow borrowers to use Bitcoin or Ethereum as collateral for loans. However, mainstream mortgage lenders have generally avoided this practice until now.
Regulatory Landscape and Legislative Developments
Newrez’s announcement follows significant regulatory discussions about cryptocurrency’s role in mortgage underwriting. In June 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop proposals. These proposals must examine how to consider digital assets in single-family mortgage risk assessments without requiring conversion to US dollars.
Subsequently, Wyoming Senator Cynthia Lummis introduced the 21st Century Mortgage Act in August 2025. This legislation would codify the FHFA directive into law. Senator Lummis emphasized that the bill addresses housing affordability challenges for younger Americans. She stated, “The American dream of homeownership is not a reality for many young people.”
The legislation reflects the growing number of Americans who hold digital assets. The Senate read the bill twice before referring it to the Committee on Banking, Housing and Urban Affairs. However, the legislation has not advanced further as of February 2025.
Industry Impact and Expert Perspectives
Industry experts recognize this development as potentially transformative. Mauricio Di Bartolomeo, co-founder of cryptocurrency lending platform Ledn, previously noted that some Bitcoin holders already use their assets to finance real estate purchases. He explained this approach allows investors to avoid liquidating their cryptocurrency positions.
The mortgage industry traditionally relies on established asset classes for underwriting. These typically include stocks, bonds, and cash equivalents. Cryptocurrency introduces unique considerations including volatility, custody, and valuation methodologies. Newrez’s policy attempts to address these concerns through specific safeguards.
Other financial institutions may follow Newrez’s lead if this initiative proves successful. However, widespread adoption depends on several factors. Regulatory clarity, standardized valuation methods, and risk management frameworks will determine industry acceptance.
Technical Implementation and Risk Management
Newrez developed specific technical protocols for cryptocurrency valuation in mortgage applications. The company will likely use volume-weighted average prices from major exchanges. Additionally, the lender may apply conservative haircuts to account for market volatility.
Blockchain technology provides transparent verification of cryptocurrency holdings. Borrowers can demonstrate asset ownership through wallet addresses and transaction histories. This transparency potentially exceeds traditional asset verification methods.
Risk management remains paramount for mortgage lenders. Cryptocurrency markets experience significant price fluctuations compared to traditional assets. Newrez’s policy includes mechanisms to address this volatility while maintaining lending standards.
Comparative Analysis: Traditional vs. Crypto Mortgage Underwriting
| Underwriting Factor | Traditional Assets | Cryptocurrency Assets |
|---|---|---|
| Valuation Method | Market prices with standard adjustments | Adjusted prices with volatility considerations |
| Custody Requirements | Bank/brokerage statements | Regulated exchanges/platforms |
| Liquidity Assumptions | Generally high liquidity | Variable liquidity by asset type |
| Regulatory Framework | Well-established regulations | Evolving regulatory landscape |
| Documentation | Account statements | Wallet addresses + exchange statements |
Future Implications and Market Evolution
This policy development signals potential broader acceptance of digital assets in traditional finance. Mortgage approval represents a crucial financial milestone for most Americans. Therefore, cryptocurrency integration into this process carries symbolic and practical significance.
The success of Newrez’s initiative may influence other lenders. However, several challenges remain unresolved. Regulatory uncertainty persists despite recent legislative proposals. Additionally, standardized industry practices for cryptocurrency valuation require further development.
Technological infrastructure must evolve to support widespread adoption. Mortgage processing systems traditionally handle conventional asset types. Integrating cryptocurrency verification requires specialized tools and expertise.
Conclusion
Newrez’s groundbreaking crypto mortgage policy represents a significant step toward financial integration. The initiative addresses demographic shifts in asset ownership while maintaining prudent lending standards. This development follows regulatory discussions and legislative proposals recognizing digital assets’ growing importance. The policy’s implementation will provide valuable insights about cryptocurrency’s role in traditional finance. Ultimately, successful integration could expand homeownership access for younger Americans while acknowledging evolving investment patterns. The mortgage industry watches closely as Newrez pioneers this innovative approach to crypto mortgage approval.
FAQs
Q1: When does Newrez’s crypto mortgage policy take effect?
The policy becomes effective in February 2025 across Newrez’s non-agency mortgage products, including home purchases, refinancings, and investment properties.
Q2: Which cryptocurrencies does Newrez accept for mortgage approval?
Newrez accepts Bitcoin (BTC), Ether (ETH), spot Bitcoin and Ether ETFs, and US dollar-backed stablecoins held with US-regulated institutions.
Q3: Do borrowers need to sell their cryptocurrency for mortgage qualification?
No, the policy allows borrowers to use cryptocurrency holdings for asset verification without requiring liquidation, though valuations may be adjusted for market volatility.
Q4: How does this policy address cryptocurrency volatility concerns?
Newrez may apply valuation adjustments to reflect market fluctuations, and borrowers must still make mortgage payments in US dollars rather than cryptocurrency.
Q5: What regulatory developments preceded this policy announcement?
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to develop cryptocurrency proposals in June 2025, followed by Senator Lummis’s 21st Century Mortgage Act introduction in August 2025.
