Crypto: Crypto Mortgages In Us Face Valuation Risks, Regulatory Uncertainty

Some lenders are willing to accept Bitcoin and recognize crypto holdings when considering a mortgage application, but issues around risk remain.

On Jan. 16, Pennsylvania-based lender Newrez announced plans to accept certain cryptocurrency holdings when considering mortgage applications. The change, which the company said will take effect in February, will apply to loans for homes, refinancing and other investment properties.

For Newrez, the plan comes on the tailwinds of directions from the US Federal Housing Finance Agency (FHFA) last year. In June 2025, the FHFA ordered Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to develop plans for recognizing crypto in loan applications.

In doing so, crypto gained at least partial recognition from two major government enterprises that provide liquidity and stability to mortgage markets. At the time, Michael Saylor, chair of Bitcoin (BTC) treasury company Strategy, said, “Future generations will remember this as the moment Bitcoin entered the American dream.”

But despite guidance from housing authorities and growing acceptance, issuers are still risk-averse, and regulatory clarity is far from solid.

Expanding the “American dream” — i.e., homeownership — was at least one prominent motivator for the FHFA to make its decision. In his official directive to Fannie Mae and Freddie Mac, the agency’s director, Bill Pulte, wrote that crypto was to be considered as part of those companies’ goal to “help ensure sustainable, long-term home ownership.”

Homeownership rates in the US have remained relatively stable for the last 60 years. Peaks and valleys have occurred during recessions and other volatile economic events, yet the rate has stayed somewhere between 60% and 70%.

But in recent years, the average age of homeowners has spiked. It was around 39 years old in 2010. Just 15 years later, the average age nearly doubled to 59. This shows that there are few young entrants from the Millennial and Gen Z generations into the real estate market.

The concentration of single-family homes into fewer hands is exacerbated by the presence of major institutional investors in the housing market. A 2023 report from the Hamilton Project found that so-called mega-investors owned as much as 27% of single-family home rental stock in Atlanta. They owned 45% in Memphis and 37% in Birmingham.

The vast majority of crypto owners are under 44. Allowing them to use their holdings to

Source: CoinTelegraph