Major US mortgage lender Newrez will begin accepting Bitcoin and Ethereum as eligible assets for mortgage applications, targeting young first-time homebuyers. The company will discount the market value of cryptocurrencies to account for their volatility, but assets must be held in regulated custodians such as exchanges or banks, rather than in self-custody wallets. This move responds to directives from US housing regulators to review the role of cryptocurrencies in the mortgage sector, but has also sparked criticism from some legislators regarding potential risks.
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Major US mortgage lender Newrez will begin accepting Bitcoin and Ethereum as eligible assets for mortgage applications, targeting young first-time homebuyers. The company will discount the market value of cryptocurrencies to account for their volatility, but assets must be held in regulated custodians such as exchanges or banks, rather than in self-custody wallets. This move responds to directives from US housing regulators to review the role of cryptocurrencies in the mortgage sector, but has also sparked criticism from some legislators regarding potential risks.