US Studying Crypto Assets in Mortgage Checks

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00:00You don't have banks getting comfortable yet with crypto.

00:03If Fannie Mae and Freddie Mac do get more comfortable with it,

00:06does it kind of solve the problems in the industry of getting comfortable with it for mortgages?

00:10On that very online, he did announce this directive on Twitter and uploaded a screenshot of the note.

00:15And that's what got a lot of industry folks unsettled a little bit.

00:18Because for them, usually big announcements like these involve roundtable discussions,

00:22involve like, you know, you talk to key stakeholders, it involves months of discussing.

00:26But then here we are, he just posted it on X, and of course, it got a lot of crypto bros and enthusiasts excited.

00:32Wait, let's identify the problem here.

00:34If you have made a lot of money with crypto, at least on paper, you go out and you try to get a loan,

00:39the bank doesn't necessarily count that crypto wealth toward approving you for a mortgage, right?

00:44Because, yes, and what he's saying is when it comes to crypto mortgage assessment,

00:48he wants Bitcoin and all your assets to be included.

00:50Because, for example, if you're a Bitcoin billionaire, but you just have a little in fiat currency or dollars,

00:55then no one will care that you're a Bitcoin billionaire.

00:57So this is just really that, counting it as part of the risk assessments.

01:00And you both would know, if you're a mortgage, if you have a mortgage,

01:04that usually it's really your income and the house as your collateral that are the primary drivers.

01:09But assets also play a role, although quite secondary.

01:12Your savings, your 401k, and so that's what they want to prove.

01:15And for Bitcoin holders, they're happy because they don't have to liquidate their holdings

01:18to put in a down payment or to prove that they have the cash.

01:22It's interesting, you have Bill Palti really also looking at the traditional way credit scoring works,

01:27FICO versus Vantage 4.0.

01:29The question to me is when does a traditional lender say,

01:33I'm going to take your Bitcoin and lend against it?

01:35Isabel?

01:36That is a big question.

01:37And we actually have startups like that.

01:39Milo, for instance, it's a Miami-based startup from start to finish.

01:42It does that.

01:42But then in the traditional space, we still don't have it.

01:45And a lot of questions remain because Bitcoin is so volatile.

01:47In a month, it can move 40% on the upside or the downside.

01:50So how will that go?