Cryptocurrency holding to be considered for Mortgages.

[Coin_info]

People who own crypto currency may have a good chance at securing Mortgages as cryptocurrency is about to be considered an asset increasing eligibility for it. I first came across this on X, but have had to do my research to verify the information before sharing here on the forum.

The Federal Housing Finance Administration Director William Pulte said in a post that he has instructed Fannie Mae and Freddie Mac to consider cryptocurrencies as part of a mortgage application. By allowing cryptocurrencies to count as an asset, borrowers who have crypto holdings could be seen as being in better financial position to pay the mortgage, potentially increasing their chances of getting the loan.

This is an indication that cryptocurrency is gaining acceptance and more adoption will follow.

https://www.investopedia.com/federal-regulator-opens-doors-to-crypto-in-mortgage-applications-11761381
(If I should not post this here, please help move it to the proper place.)

[Zlantann]

This is an indication that cryptocurrency is gaining acceptance and more adoption will follow.

If bonds and stocks could be seen as a valuable asset that affects the eligibility of mortgage approval, then Bitcoin is also qualified. Bitcoin has proved over the years to be a reliable asset that can be used as collateral for loans. If this proposal is approved by the Federal Housing Finance Administration, the Federal Home Loan Mortgage Corporation, and the Federal Housing Administration (FHA), it will be a big win for crypto holders in the US.

The order doesn’t specify which cryptocurrencies will be accepted, but it did say that cryptocurrency assets must be “evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws.”

https://www.investopedia.com/federal-regulator-opens-doors-to-crypto-in-mortgage-applications-11761381

But I am not comfortable with my crypto asset being kept in a centralized exchange. The risk of keeping Bitcoin in an exchange is high considering the rate of hacks.

[avikz]

We are on the right path!

As Zlantann mentioned, it stocks and bonds can be considered as an asset, why not Bitcoin! That's total valid. I am happy that FHA is planning to make a move to include Bitcoin as well while considering your networth.

These are the kind of adoptions we should cheer about. It's about gaining acceptance and prominence in the organizer financial sector.

[justinlamode]

I saw the news today and I was excited because it just made Bitcoin move one step forward in offering real utility and seen as trusted asset to be used as collateral. It shows that rather than hindering the adoption of Bitcoin, there is growing interest in Bitcoin by those who are in areas of authorities. For the first time ever, I'm having the feeling that Bitcoin will eventually achieve mainstream adoption, it will only take some time but the process have already started.

[tabas]

Nice, let's hope that more countries, banks, and governments adopt this kind of consideration. Because someone who's got a lot of asset in the form of Bitcoin and other good cryptos, they can be considered as good collateral and can give assurance that the owners can pay the mortgages. So, not just the mortgages but also in loans. I think that there are exchanges like Coinbase that allows you to borrow fiat based on the Bitcoin you'll use as a collateral. Soon, we'll see this kind of transaction and service not just coming from crypto exchanges.

[cabron]

Heard this on some finance channel yesterday. Quit cool to see them really trying hard to make use case for crypto however I heard they were creating  House Coin/Token?

I couldn't be sure how true this is but maybe if it benefit them, they will really be doing it. And for them it wouldn't make sense to use other altcoin they are not in control. But I do hope I heard it wrong.

[Hewlet]

People who own crypto currency may have a good chance at securing Mortgages as cryptocurrency is about to be considered an asset increasing eligibility for it. I first came across this on X, but have had to do my research to verify the information before sharing here on the forum.

crypto is an asset and so, there is every possibility that it can be considered for mortgages most especially when you holds enough of it. i think the first consideration is going to be that you have to own a certain worth of a crypto and not just a crypto but one like bitcoin whose worth is reasonable to a large extent. volatility can be another factor that can lead to liquidation risk both for the parties involved which is one major risk that is associated with the use of crypto.

[Ultegra134]

Although something like this will never happen in Europe (extremely unlikely), it's a great start towards crypto adoption and will assist users holding major amounts of Bitcoin towards house purchases. I hold a satisfactory amount of Bitcoin and other cryptocurrencies and unless I convert them into fiat, then I have zero use into taking a loan myself or proving that I have enough funds. I also agree with Zlantann, it's widely accepted that Bitcoin is seen as an asset, why don't we actually treat it that way as well? What's so different with bonds and stocks?

[Fortify]

It's a good thing for Bitcoin and cryptocurrency, as you say X/Twitter is definitely not a reliable source of information by itself but it seems that even the Associated Press are publicizing this information now - which will usually be vetted. I wouldn't get your hopes up too early though and it is probably only going to apply to people with substantial holdings that are probably focused in Bitcoin. You may even have to put your holdings into some kind of escrow account which may get liquidated if it dropped too far in value. It could actually introduce some shaky ground into the housing market, which is essentially what triggered off the subprime mortgage crisis of 2008 - so I hope they put a lot of thought into it. It's strange though because I don't hear the same thing taking place for gold deposits, but maybe they have been around for such a long time that was normalized ages ago.

[Pablo-wood]

I don't think the will consider just any crypto currency but of a certainty bitcoin should be the top considered asset eligible for mortgage. But mortgaging bitcoin or other crypto asset is risky though, especially during bear seasons, reasons been that the  inconsistency in price might make repayments a bit challenging it's will only be profitable during bull runs but in the beat market the losses might incur more debts because the lender will be forced to accept repayment based on the conversation rate at that time except a clear term was defined before hand in as price keeps fluctuating.

[Spaceman1000$]

People who own crypto currency may have a good chance at securing Mortgages as cryptocurrency is about to be considered an asset increasing eligibility for it. I first came across this on X, but have had to do my research to verify the information before sharing here on the forum.

crypto is an asset and so, there is every possibility that it can be considered for mortgages most especially when you holds enough of it. i think the first consideration is going to be that you have to own a certain worth of a crypto and not just a crypto but one like bitcoin whose worth is reasonable to a large extent. volatility can be another factor that can lead to liquidation risk both for the parties involved which is one major risk that is associated with the use of crypto.

Of course crypto is an asset but they did not specify this specific cryptocurrencies they would be preferring as most considerate for now, maybe in the long run they will come up with a clear cut policy as to which cryptocurrency you will need to hold to be recognized as mortgage. The volatility will bring us to the point of knowing if it is Bitcoin that will be most considered, because it has lower risk and volatility, but my major concerned with this policy is the fact that you will have to hold your crypto in a centralized exchange which we all know that is prone to hack, maybe because the government wants a centralized exchange so that they can easily monitor the activities of those that would be interesting in the initiative.

[JeffBrad12]

Sounds pretty solid, crypto is an asset and such thing should be normalized.

But I am not comfortable with my crypto asset being kept in a centralized exchange. The risk of keeping Bitcoin in an exchange is high considering the rate of hacks.

It does make sense for the regulation to be that way though, they need to make sure they can do something with the asset, so 3rd party custodian is a must for them.
As long as it's strongly regulated 3rd party custodian I think it will be fine.

[DeathAngel]

This is great but at the moment it’s only going to be for coins stored on exchanges. Your coins in cols storage, self custody will not qualify as collateral. It’s another step in the right direction though as Bitcoin really does head towards being a big part of mainstream finance. To get this far in only 16 years is incredible really.

[Sticky Bomb]

Nice, let's hope that more countries, banks, and governments adopt this kind of consideration. Because someone who's got a lot of asset in the form of Bitcoin and other good cryptos, they can be considered as good collateral and can give assurance that the owners can pay the mortgages. So, not just the mortgages but also in loans. I think that there are exchanges like Coinbase that allows you to borrow fiat based on the Bitcoin you'll use as a collateral. Soon, we'll see this kind of transaction and service not just coming from crypto exchanges.

This is the only place I have a problem with the whole statement you made, beside bitcoin, personally I do not think there is a coin out there that has the foundational value to be trusted for a long time. I have personally borrowed someone some fiat in the past and held his bitcoin as collateral. Have he presented any other shitcoin. I wouldn't have been able to offer him the loan because if the shitcoin rugs tomorrow, I would be the one in great loss and he may intentionally not want to pay back since I can take the collateral, but since I held a bitcoin value greater than  his loan, he was moved to pay off his debt even before time and reclaim his bitcoin.

[Republikcoin.com]

People who own crypto currency may have a good chance at securing Mortgages as cryptocurrency is about to be considered an asset increasing eligibility for it. I first came across this on X, but have had to do my research to verify the information before sharing here on the forum.

The Federal Housing Finance Administration Director William Pulte said in a post that he has instructed Fannie Mae and Freddie Mac to consider cryptocurrencies as part of a mortgage application. By allowing cryptocurrencies to count as an asset, borrowers who have crypto holdings could be seen as being in better financial position to pay the mortgage, potentially increasing their chances of getting the loan.

This is an indication that cryptocurrency is gaining acceptance and more adoption will follow.

https://www.investopedia.com/federal-regulator-opens-doors-to-crypto-in-mortgage-applications-11761381
(If I should not post this here, please help move it to the proper place.)

Not all cryptocurrencies can have a good chance of getting a decent mortgage because now there are so many cryptocurrencies that are already spread across all markets so everyone needs to know them more closely and more deeply about some cryptocurrencies so they can know which cryptocurrencies are worth holding and have good opportunities in the future. So in terms of choosing and relying on cryptocurrencies, everyone must also be more careful in finding out because as I said that not all cryptocurrencies can be good for everyone's future.

[Webetcoins]

I guess banking system of my country has to evolve a lot to reach anything like this for bitcoin. Cryptocurrencies could be a collateral but I guess you may get less than 50% loan value due to higher volatile nature of cryptos.

This is an indication that cryptocurrency is gaining acceptance and more adoption will follow.

Yes, I agree. Still, I am not comfortable on mixing traditional banking with cryptocurrencies. I mean for mortgage, you must choose any other asset because "not your keys, not your coins" applies here as well. When modern exchanges are vulnerable for hacking, how do you believe banks for securely holding your coins?

[viljy]

This is a very positive signal for cryptocurrencies regarding their continued adoption. The more industries that use cryptocurrency, the better. There are already quite a few such industries (for example, the gambling and betting industries), but nevertheless it is still only a drop in the bucket compared to fiat payments. Of course, in this comparison, I mean only the legal sectors of the economy.

[EluguHcman]

People who own crypto currency may have a good chance at securing Mortgages as cryptocurrency is about to be considered an asset increasing eligibility for it.

It is a welcomed news for enthusiasts of the proposal and if implemented will not only expand the adoption of cryptocurrencies but would contribute to a more stability of Bitcoin because holders in the application or beneficiaries of the mortgage will be encouraged not to sell their crypto assets too soon especially when those little profits are made or reacting to sudden sells due to FOMO.

Regardless, crypto especially Bitcoin has long been an asset which I would almost say the federal did not notice it earlier but because dealing with cryptocurrencies requires the need of thorough scrutiny to figure it reliability, such inclusion on a federal institution like that of this FHFA do solely requires enough time before decisions like this can be made. Indeed Bitcoin as part of the crypto currencies has really proven it asset values like those treasures federations and institutions has long been considered a bond for reserve.

So whoever holding potential crypto currencies is not only holding a commodity like the fiats basically for payments but also asset in digital form. So I don't see this federal motion of including holders of cryptocurrencies to be outstanding for the application of mortgage loaning services but I am sure potential coin holders like Bitcoin would be more considered on the potential expected cryptocurrencies for this federations advent.

[Agbe]

This is Long overdue because Bitcoin is an asset soone good reason why people or even banks give out loan to any individual is the quality of assets that such people hold and since Bitcoin is an asset then people can get loans using Bitcoin as a guarantee

[doomloop]

I don't think the will consider just any crypto currency but of a certainty bitcoin should be the top considered asset eligible for mortgage.

If they are smart yes because not all crypto is legit or can stay like that. There are some that are considered to be legit only because they are listed and have some value but they can still be hard to liquidate due to lack of demand/volume.

But mortgaging bitcoin or other crypto asset is risky though, especially during bear seasons, reasons been that the  inconsistency in price might make repayments a bit challenging it's will only be profitable during bull runs but in the beat market the losses might incur more debts because the lender will be forced to accept repayment based on the conversation rate at that time except a clear term was defined before hand in as price keeps fluctuating.

I think some lending companies might still make the payments fixed. That way, the complexities and possible losses for them are going to be removed. If not, I will think twice first before availing one. Or maybe I will analyse the market first. This can be one of the ways for us to earn according to what you said there. So even if we don't urgently need money for something, we will still going to take loans. We can as well use the money into some profitable activities or by opening some businesses, to make it more senseful.