Fannie Mae will begin purchasing home loans underwritten with cryptocurrency holdings as reserve assets without first requiring borrowers to turn their crypto into cash, a pioneering move with the potential to mainstream digital assets in mortgage underwriting.
Nasdaq-traded companies Better Home and Finance Holding Co., the parent of mortgage lender Better Mortgage Corp., and Coinbase, a U.S.-based cryptocurrency exchange, said Thursday they jointly launched “the first token-backed, conforming mortgage,” noting the loans were eligible for purchase by Fannie Mae.
Of note, the product complies with Fannie Mae’s current underwriting guidelines for asset-utilization loans and does not require any changes to its Selling Guide, explained Vishal ...