Submission statement: this article is relevant because collateralized loans using highly risky assets is noteworthy financial news, especially since this is being backed by government backed corporations and could have implications for the mortgage security markets and home ownership in the U.S.
wumbopolis_ on
Relevant, and definitely not super concerning, quotes
> To use the product, a borrower must have a Coinbase account and would take out a regular mortgage with Better as well as a second loan, backed by either bitcoin or USD Coin. The second loan would fund the down payment on the first loan.
>
> Both loans are held by Better, and the crypto assets, once pledged, cannot be traded. Even if the value of the crypto falls, nothing changes on the loans, as long as the borrower keeps making the monthly payments.
>
> …
>
> In general, however, the backing by Fannie Mae, whose conservator, the Federal Housing Finance Agency, has been increasingly bullish on cryptocurrency, seems to open the door for more products like this one.
>
> “I don’t see how the entire real estate industry will not be on the blockchain within 10 years,” said Tony Giordano, a real estate agent specializing in cryptocurrency
Early 2000s MBS bubble, we are so back
NieuwWorld on
Send the asteroids man
Flat_Sail_7985 on
Someday I will be able to use a Truth Social post by Donnie saying the market will go up for mortgage collateral.
Coolioho on
Is this primarily a risk of the lonee or the bank? If it is the former we are effed, if it is the latter this will never become successful
5 Comments
Submission statement: this article is relevant because collateralized loans using highly risky assets is noteworthy financial news, especially since this is being backed by government backed corporations and could have implications for the mortgage security markets and home ownership in the U.S.
Relevant, and definitely not super concerning, quotes
> To use the product, a borrower must have a Coinbase account and would take out a regular mortgage with Better as well as a second loan, backed by either bitcoin or USD Coin. The second loan would fund the down payment on the first loan.
>
> Both loans are held by Better, and the crypto assets, once pledged, cannot be traded. Even if the value of the crypto falls, nothing changes on the loans, as long as the borrower keeps making the monthly payments.
>
> …
>
> In general, however, the backing by Fannie Mae, whose conservator, the Federal Housing Finance Agency, has been increasingly bullish on cryptocurrency, seems to open the door for more products like this one.
>
> “I don’t see how the entire real estate industry will not be on the blockchain within 10 years,” said Tony Giordano, a real estate agent specializing in cryptocurrency
Early 2000s MBS bubble, we are so back
Send the asteroids man
Someday I will be able to use a Truth Social post by Donnie saying the market will go up for mortgage collateral.
Is this primarily a risk of the lonee or the bank? If it is the former we are effed, if it is the latter this will never become successful