TL;DR
- Newrez, a major U.S. mortgage lender with a $778.3 billion servicing portfolio, now counts Bitcoin and Ethereum as qualifying assets for mortgage applications when held with regulated custodians.
- The policy applies a valuation discount to reflect crypto volatility while still treating these holdings as usable reserves.
- The move targets younger borrowers with crypto-heavy portfolios and aligns with growing regulatory attention on digital assets in housing finance.
A major U.S. mortgage lender is now factoring Bitcoin and Ethereum into its underwriting process, bringing digital assets closer to the mainstream home-financing system. The decision comes as housing affordability pressures rise and more younger borrowers build wealth outside traditional bank accounts. By setting clear guidelines, the lender aims to reflect modern balance sheets without weakening risk standards.
Bitcoin And Ethereum In Mortgage Qualification
Newrez, a nationwide wholesale mortgage provider, confirmed it is reviewing Bitcoin and Ethereum holdings when evaluating borrower eligibility. The company serviced a $778.3 billion portfolio tied to 3.7 million loans last year, placing it among the largest mortgage servicers in the U.S. Under the updated approach, crypto can count as reserve assets, similar to stocks or other liquid financial holdings.
To manage price fluctuations, Newrez applies a haircut to the value of Bitcoin and Ethereum instead of using full spot-market prices. While the firm has not disclosed the exact discount, it says the adjustment reflects crypto volatility. At this stage, the lender does not allow mortgage payments directly in crypto, keeping the focus on reserves rather than cash flow.
Custody Rules And Risk Controls For Digital Assets
Newrez requires crypto assets to be held through U.S.-regulated exchanges, brokerages, fintech apps, or nationally chartered banks. Self-custody wallets are excluded under the current framework, ensuring verification, compliance, and documentation remain consistent with standard underwriting practices. The program also recognizes cash-backed stablecoins, expanding the list of eligible digital assets.
This structure mirrors how lenders assess traditional financial accounts, where ownership clarity and liquidity are essential. As a result, borrowers with verifiable crypto holdings may face fewer barriers when proving reserves, even if most of their wealth is not stored in savings accounts.
Regulatory Focus And Broader Market Effects
The shift comes as the Federal Housing Finance Agency continues to review how crypto holdings influence mortgage qualifications. While some lawmakers warn about consumer exposure to volatile assets, Newrez’s haircut policy shows how lenders can integrate crypto without ignoring risk management.
Newrez’s decision signals that mortgage underwriting is starting to reflect how a growing share of investors store value today. With deep liquidity, global price discovery, and rising institutional participation, Bitcoin and Ethereum are increasingly difficult for traditional finance to overlook.
