U.S. mortgage institutions make a precedent! Newrez incorporates crypto assets into mortgage approval, but with one condition

Newrez becomes a precedent for large-scale mortgage lending in the United States, recognizing cryptocurrency assets in mortgage approval processes starting in 2026, with policy and regulatory shifts promoting the digitalization of real estate finance.

The mortgage market is undergoing digital transformation, with Newrez leading the way among the top 25 mortgage lenders nationwide

As digital assets gradually enter mainstream investment portfolios, the U.S. real estate finance industry is experiencing an unprecedented transformation. Recently, Newrez, one of the top 25 mortgage lenders nationwide, officially announced that starting February 2026, it will incorporate cryptocurrency assets into its mortgage approval process, becoming the first major loan service provider to take such action. The core of this new policy is that borrowers will no longer need to liquidate their crypto holdings to pass loan approval.

Newrez states that this move mainly targets investors with cryptocurrency knowledge, especially those seeking greater flexibility during the mortgage application process. According to the company, this signifies that large lending institutions are officially integrating digital assets into the mortgage issuance process for the first time, breaking down the barriers between traditional finance and decentralized assets.

This policy reflects a significant shift in investor demographics. Leslie Gillin, Chief Business Officer of Newrez, pointed out that the current global cryptocurrency market size has exceeded $3 trillion, and among Generation Z and millennial investors, approximately 45% hold crypto assets. For these future homebuyers, cryptocurrencies are already an important part of their wealth composition.

Baron Silverstein, President of Newrez, believes that as major financial institutions deepen their involvement with crypto assets and regulatory developments progress, now is the optimal time to systematically integrate qualified cryptocurrencies into modern mortgage processes. Through this innovation, Newrez aims to create new pathways for consumers to achieve homeownership, allowing investors holding digital assets to enjoy the same financial flexibility as traditional stock and bond investors.

Qualified Asset List and Risk Management: Pilot of Non-Agency Products

On a practical level, Newrez will incorporate crypto assets into its “Smart Series” non-agency mortgage product suite. According to the latest guidelines, qualified digital assets used for income estimation and asset verification include: Bitcoin ($BTC), Ethereum ($ETH), SEC-approved spot ETFs for BTC or ETH, and dollar-pegged stablecoins. This allows borrowers to maintain the integrity of their investment positions without being forced to liquidate due to concerns over capital gains taxes or missing out on long-term growth.

However, to manage risk, Newrez stipulates that these crypto assets must be stored on U.S.-regulated cryptocurrency exchanges, fintech platforms, brokers, or nationally chartered banks. While recognizing the value of crypto assets, the company will employ rigorous valuation models during the approval process. Given the high volatility of the crypto market, the company will adjust the valuation of digital assets to reflect potential market risks.

Additionally, even though digital assets can serve as proof of assets, borrowers will ultimately need to pay the down payment, closing costs, and monthly mortgage payments in U.S. dollars. This approach provides flexibility while ensuring the operational stability of the lending institution within the existing monetary system. Newrez believes that incorporating crypto wealth into credit assessments could trigger a major shift in the entire credit and lending industry’s perception of digital wealth, creating competitive pressure among peers.

Real Estate Digital Token Innovation, MegPrime Supports Young Renters in Home Buying

Beyond mortgage institutions, U.S. real estate developers are also making breakthroughs in digital asset applications. Texas builder Megatel Homes recently received a “No-action Letter” from the SEC, allowing it to launch its “MegPrime” reward token (MP Token). MegPrime is a digital asset designed to assist consumers in paying housing costs and earning rewards in daily expenses.

This token project is an extension of the 2019 rental earn-to-buy program. According to the new system, users who pay rent via the MegPrime app can earn “RentForward” rewards, which can return up to 100% of the past 12 months’ rent (up to $25,000), directly used as a down payment for a new home.

The innovation of MegPrime lies in its close integration with daily life. Users can use digital wallets and payment cards to make purchases at general stores, buy gasoline, or groceries, earning more MP tokens or housing benefits points. Additionally, the platform offers a “BillPay” feature, where using tokens to pay mortgage or rent can earn up to 20% cashback rewards.

The SEC’s “No-action Letter” confirms that MegPrime is not considered a security or investment contract, mainly because token holders do not have voting rights or profit-sharing rights. Zach Ipour, CEO of Megatel, emphasized that such tokenized assets are gradually linking real estate rights with blockchain technology, and by the end of 2026, more traditional assets are expected to transition onto blockchain management.

Policy Shift, Federal Agencies and Congress Promote Digital Asset Normalization

These initiatives by Newrez and Megatel are largely facilitated by a shift in the U.S. political stance toward cryptocurrencies. Under the Trump administration, the SEC became more “crypto-friendly,” with current Chair Paul Atkins optimistic about digital assets and establishing the “Crypto 2.0” task force to create clear industry regulations.

The Federal Housing Finance Agency (FHFA) Director Bill Pulte has directly instructed Fannie Mae and Freddie Mac to draft proposals exploring how to incorporate borrowers’ cryptocurrencies into single-family mortgage risk assessments without converting them into U.S. dollars. This directive breaks long-standing resistance in the mortgage market against decentralized currencies and seeks to address valuation issues of digital assets from an institutional perspective.

Further Reading
Young crypto holders increasing! U.S. lawmakers propose bill requiring mortgage assessments to include cryptocurrencies

Legislatively, Wyoming Senator Cynthia Lummis proposed the “21st Century Mortgage Act” in 2025 to formalize the FHFA directive. Lummis pointed out that for many young Americans, the American Dream of homeownership is becoming increasingly distant, and this legislation reflects the reality that more Americans hold digital assets. It aims to recognize these assets to help address housing affordability challenges.

Although the bill is still under review by the Senate Banking, Housing, and Urban Affairs Committee, it has already sparked widespread discussion in the market. As the gap between traditional banks and decentralized finance (DeFi) narrows, the application of digital assets in real estate is expected to promote more standardized regulation, driving modernization and transformation of the entire mortgage industry.