Fannie Mae accepts first crypto-backed mortgage product
CNBC • • business
Key Points:
- Fannie Mae has begun accepting crypto-backed mortgages through a new product offered by Better Home and Finance in partnership with Coinbase, allowing homebuyers to use cryptocurrency assets as collateral while Fannie Mae purchases these loans like any other conforming mortgage.
- This product enables borrowers to pledge crypto assets such as bitcoin or USD Coin for a second loan that funds the down payment on a traditional mortgage, allowing them to keep their cryptocurrency without selling and incurring taxes or losing future appreciation.
- Borrowers must have a Coinbase account and will make one payment to Better, which holds both the primary mortgage and the crypto-backed second loan, with no private mortgage insurance required on the second loan.
- The offering aims to help younger generations overcome barriers to saving for a traditional down payment, with future plans to accept other tokenized assets like stocks and mutual funds as collateral.
- The Federal Housing Finance Agency's support of Fannie Mae's involvement in crypto-backed mortgages signals potential growth in blockchain integration within the real estate industry over the next decade.
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