Mortgage Lender

Major Lender Newrez to Accept Crypto for Mortgages Starting February

Top-5 US lender Newrez breaks new ground by accepting Bitcoin, Ethereum & stablecoins for mortgages—no liquidation required. Starting February 2026, crypto holders can finally qualify like stock investors. Is your digital wealth about to unlock homeownership?

The Ripple Effect

— 8 min read
Major Lender Newrez to Accept Crypto for Mortgages Starting February

Newrez becomes first top-25 US mortgage lender to recognize cryptocurrency holdings without requiring liquidation, marking a watershed moment for digital assets in housing finance.

In a groundbreaking announcement on January 13, 2026, Newrez LLC, one of the nation's top-five mortgage lenders, revealed plans to accept cryptocurrency assets for mortgage qualification beginning in February 2026. The Pennsylvania-based lender will allow borrowers to use Bitcoin, Ethereum, and USD-backed stablecoins for asset verification and income estimation without selling their digital holdings—treating crypto assets similarly to stocks and bonds.

This represents the first major implementation of a policy shift championed by Federal Housing Finance Agency (FHFA) Director Bill Pulte, who in June 2025 directed Fannie Mae and Freddie Mac to prepare systems for recognizing cryptocurrency as a mortgage asset. While those government-sponsored enterprises continue developing their proposals, Newrez is moving forward with its own nonagency solution.

Breaking Down the Newrez Announcement

According to Newrez's official statement, the new offering will be available across the company's Smart Series product suite—a comprehensive range of non-qualified mortgage (non-QM) products used for home purchases and refinancing. These loans fall outside Fannie Mae and Freddie Mac guidelines, giving Newrez flexibility to implement innovative underwriting criteria.

"At Newrez, we're committed to meeting consumers where they are," said Leslie Gillin, Newrez's Chief Commercial Officer. "Today, the global crypto market has surged past $3 trillion, and an estimated 45% of Gen Z and Millennial investors—many of whom are future homebuyers—own crypto."

What Crypto Assets Qualify?

Newrez's program specifications include:

Eligible Cryptocurrencies:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • SEC-approved spot ETFs backed by BTC or ETH
  • USD-backed stablecoins

Custody Requirements: Digital assets must be held with US-regulated entities including:

  • US-regulated cryptocurrency exchanges
  • Retail fintech apps
  • SEC/FINRA-regulated brokerages
  • Nationally chartered banks under OCC oversight

Newrez will apply market-adjusted valuations to qualifying crypto assets, and importantly, all mortgage payments must still be made in US dollars.

The Regulatory Context: FHFA's Push for Crypto Integration

This announcement doesn't exist in a vacuum. It follows months of discussion about cryptocurrency's role in mortgage lending, sparked by FHFA Director Bill Pulte's June 2025 social media directive.

On June 25, 2025, Pulte posted on X: "After significant studying, and in keeping with President Trump's vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage."

Pulte's directive specified that Fannie Mae and Freddie Mac should "consider only cryptocurrency assets that can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws," and crucially, that cryptocurrencies under consideration would not need to be converted to US dollars.

Legislative Support and Opposition

In July 2025, Senator Cynthia Lummis (R-Wyoming) introduced the "21st Century Mortgage Act" to codify Pulte's directive into law. The legislation would require Fannie Mae and Freddie Mac to include digital assets recorded on cryptographically secured distributed ledgers as part of mortgage risk assessments for single-family home loans.

However, the proposal has faced significant pushback. In July 2025, five Democratic senators—Jeff Merkley (D-Oregon), Elizabeth Warren (D-Massachusetts), Chris Van Hollen (D-Maryland), Mazie Hirono (D-Hawaii), and Bernie Sanders (I-Vermont)—sent a letter expressing concerns about volatility risks, security vulnerabilities, and potential conflicts of interest.

The senators noted that cryptocurrencies "display volatilities that are higher than those of most traditional assets," and warned that "expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market."

The Competitive Landscape

While Newrez claims to be the first top-25 lender to accept crypto without liquidation, several smaller fintech companies have operated in this space for years:

  • Milo (Miami-based): Offers crypto-backed mortgages at 9-10% interest rates, financing up to 100% of a home's purchase price with loan amounts starting at $275,000
  • Figure: Led by former SoFi CEO Mike Cagney
  • Ledn: Toronto-based lending platform
  • Moon Mortgage: Another crypto mortgage specialist

Additionally, JPMorgan Chase revealed plans in 2025 to allow customers to pledge digital assets for secured loans, following its earlier decision to accept crypto exchange-traded funds as loan collateral.

Baron Silverstein, President of Newrez, explained the company's timing: "Today, an increasing number of consumers include crypto in their investment portfolios, while major financial institutions are deepening their involvement in crypto assets, supported by key regulatory developments. We believe that now is the right time to prudently integrate eligible crypto assets into modern mortgage lending."

The decision by a top-five lender to embrace cryptocurrency marks a significant legitimization of digital assets within traditional finance. According to Coinbase research cited by Newrez, approximately 45% of Gen Z and Millennial investors currently own cryptocurrency, representing a substantial portion of future homebuyers.

The global cryptocurrency market now exceeds $3 trillion, based on CoinMarketCap data as of January 9, 2026. This massive market capitalization, combined with increasing institutional adoption, has created pressure on traditional financial institutions to integrate digital assets into their product offerings.

The Tax Advantage

One significant benefit for crypto holders is avoiding immediate capital gains taxes. Under current Fannie Mae guidelines, virtual currency must be exchanged into US dollars before use as down payment, closing costs, or financial reserves. This liquidation requirement forces investors to realize capital gains and pay applicable taxes.

By contrast, traditional investments like stocks and bonds can be used for reserves without liquidation. Newrez's new policy extends this same treatment to cryptocurrency, allowing borrowers to preserve their investments while still qualifying for mortgages.

Tye McWhorter, an associate at Polunsky Beitel Green LLP, noted that this change "aligns with the Trump Administration's recognition of cryptocurrency as a legitimate asset class, on par with stocks and bonds." He believes this "would make for more inclusive lending, opening avenues to the younger and tech-savvy generations that likely have built wealth outside of traditional means."

Risks and Concerns

The volatility of cryptocurrency remains a primary concern for critics. Bitcoin, for example, is over three times more volatile than gold, according to industry analyses. This price instability could complicate asset verification and create challenges if crypto values drop significantly during the mortgage process.

Security risks also factor prominently. The senators' letter noted that cryptocurrency is subject to "loss due to scams, cyber hacks, or physical theft, which could leave homeowners vulnerable to losing their crypto assets with little hope of recovery."

Additionally, some market observers worry about potential conflicts of interest. Pulte disclosed personal holdings of up to $1 million in Bitcoin according to public records, while serving as both FHFA Director and chairman of the boards of Fannie Mae and Freddie Mac.

What This Means for Homebuyers

For cryptocurrency holders looking to purchase homes, Newrez's new program offers several practical advantages:

1. Preserved Investment Positions Borrowers can maintain their cryptocurrency holdings without forced liquidation, avoiding the need to time the market for home purchases.

2. Tax Efficiency By not selling crypto assets, borrowers can defer capital gains taxes that would otherwise be triggered by liquidation.

3. Portfolio Diversification Homebuyers can simultaneously invest in real estate while maintaining exposure to digital assets.

4. Competitive Qualification Crypto assets receive treatment similar to stocks and bonds in the underwriting process, potentially helping borderline borrowers qualify.

However, prospective borrowers should understand that mortgage payments must still be made in USD, and the nonagency nature of these loans may result in higher interest rates compared to conventional mortgages.

The Broader Industry Shift

Industry analysts suggest Newrez's move could signal a broader shift in non-QM and alternative documentation lending. For mortgage originators, this development underscores the importance of understanding emerging asset classes and how they factor into evolving loan qualification models.

The timing aligns with other 2026 crypto market trends, including increased institutional adoption, stablecoin integration into mainstream payments, and the ongoing consolidation of crypto infrastructure providers. Silicon Valley Bank's 2026 outlook notes that "digital assets will integrate more deeply into payments, market infrastructure and global commerce."

The passage of the GENIUS Act in July 2025, establishing regulatory clarity for stablecoins, has accelerated institutional comfort with digital assets. The legislation requires stablecoin issuers to maintain 1:1 backing in short-term treasuries or currency and comply with KYC/AML rules—standards that align with traditional banking regulations.

Blockchain Technology and Mortgage Efficiency

Beyond asset qualification, blockchain technology itself holds promise for transforming mortgage processes. In 2023, the Mortgage Industry Standards Maintenance Organization (MISMO) released a white paper stating that blockchain use could cut lending timelines by at least 30% and reduce costs by 25% or more compared to industry averages.

These potential efficiency gains represent a separate but complementary value proposition to using crypto assets for qualification. As lenders like Newrez embrace digital assets on the front end, the industry may simultaneously adopt blockchain infrastructure to streamline back-end operations.

Conclusion: A Watershed Moment with Uncertainties Ahead

Newrez's decision to accept cryptocurrency for mortgage qualification without requiring liquidation represents a significant milestone in the integration of digital assets into traditional finance. As the first top-25 US lender to implement such a policy, Newrez is betting that the $3 trillion crypto market and the 45% of young investors who own digital assets represent too large an opportunity to ignore.

The move validates FHFA Director Bill Pulte's push for broader crypto acceptance in housing finance, even as Fannie Mae and Freddie Mac continue developing their own proposals. However, significant questions remain about volatility management, security safeguards, and appropriate regulatory oversight.

For cryptocurrency enthusiasts, this announcement marks real-world utility expansion beyond speculation and trading. For skeptics, it raises concerns about injecting volatility and complexity into the largest asset purchase most Americans will ever make.

As the program launches in February 2026, the mortgage industry will be watching closely to see whether Newrez's innovation becomes a template for broader adoption or serves as a cautionary tale about mixing emerging digital assets with traditional housing finance.

What's certain is that the conversation about cryptocurrency's role in the American housing market has moved from theoretical to practical—and other lenders will be evaluating whether to follow Newrez's lead.

DISCLAIMER

This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.

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