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Fannie Mae accepts crypto backed mortgage product
Posted on 3/26/26 at 11:20 am
Posted on 3/26/26 at 11:20 am
quote:CNBC
Fannie Mae will now accept crypto-backed mortgages via a new product by mortgage company Better Home and Finance
and Coinbase
.
It’s not the first crypto backed mortgage, but it is the first accepted by Fannie Mae, which is under government conservatorship. The offering allows homebuyers to use their crypto assets as collateral. Fannie Mae will purchase those loans just like any other conforming mortgage.
“We have now finally created the infrastructure rails to enable any tokenized asset in America to be able to be pledged to help someone afford to buy a home,” Vishal Garg, CEO of Better, told CNBC in an interview. “It starts with bitcoin, starts with [USD Coin], but going forward, it can be Apple stock or Amazon stock, or any publicly traded mutual fund, bond fund, something that you might hold in your IRA, you’re going to be able to pledge that to buy a home.”
The idea is to serve Americans who have enough crypto assets to fund a mortgage down payment but do not want to sell those assets, which would both incur taxes and forfeit any future appreciation.
The new mortgage product allows them to keep the cryptocurrency and still secure home financing.
2
Posted on 3/26/26 at 4:09 pm to bigjoe1
Why would anyone do this
Posted on 3/26/26 at 4:29 pm to bigjoe1
quote:
who have enough crypto assets to fund a mortgage down payment but do not want to sell those assets, which would both incur taxes and forfeit any future appreciation.
Or, on the other hand you get caught in a down market which in turn triggers a margin call on the first loan that precipitates the acceleration clause on the mortgage …and it’s gone.
This post was edited on 3/26/26 at 4:30 pm
Posted on 3/26/26 at 4:32 pm to lsuconnman
If you read, there is no margin call on this type of loan
Posted on 3/26/26 at 5:13 pm to TigerTatorTots
I didn’t read where it said that. The example they gave was is putting 250k of crypto as collateral for the 100k down payment. Then holding the 400k mortgage as a second loan.
There isn’t a bank in the world that won’t act if your collateral’s value drops below the outstanding loan value.
There isn’t a bank in the world that won’t act if your collateral’s value drops below the outstanding loan value.
Posted on 3/26/26 at 9:29 pm to lsuconnman
Sorry, different article had that
LINK
LINK
quote:
Better said on Thursday that its new crypto-backed mortgages will have "no margin calls" and "no top-ups," noting that if the price of bitcoin drops, the mortgage terms will remain stable with no additional collateral requirements and "market movements alone never trigger liquidation."
Posted on 3/26/26 at 9:55 pm to TigerTatorTots
It’s not a novel idea, but it seems stupid structure for any fungible items. It you have a unique possession that can’t be replaced like a Rembrandt, the arrangement makes
Some sense. But, this setup is basically taking a zero interest credit cards and trying to use it for your down payment.
Some sense. But, this setup is basically taking a zero interest credit cards and trying to use it for your down payment.
Posted on 3/28/26 at 6:18 pm to lsuconnman
quote:
But, this setup is basically taking a zero interest credit cards and trying to use it for your down payment.
I remember for years refusing to invest in Amazon. An online bookseller with revenue of $500 million and market cap of $2 billion? Talk about a retarded investment.
Posted on 3/28/26 at 7:56 pm to David_DJS
I hear ya. I thought the same thing about Humble. I can’t believe I missed the web3 train.
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