First Fannie Mae-Backed Mortgage Secured by Bitcoin Completed
Coinbase announced that a Michigan couple closed on the first-ever conventional, Fannie Mae-backed mortgage secured by Bitcoin as collateral, in partnership with mortgage lender Better. The borrowers pledged Bitcoin for their down payment, enabling them to retain their crypto assets while accessing homeownership. The product, initially announced in March, will roll out to qualified borrowers nationwide and also support Circle's USDC stablecoin. It avoids margin calls or liquidations from daily market drops, but a 60-day delinquency could trigger liquidation of pledged crypto. The development follows a policy shift by FHFA director Bill Pulte, who directed the agency to recognize crypto held on centralized exchanges as collateral. Critics like Senator Elizabeth Warren have raised concerns about risks to consumers and financial markets.
Key facts
- First Fannie Mae-backed mortgage using Bitcoin as collateral for down payment closed.
- Product avoids margin calls from daily price swings; liquidation only after 60-day delinquency.
- Policy shift by FHFA director Bill Pulte enabled recognition of centralized exchange-held crypto.
- Senator Elizabeth Warren criticized the move, citing risks to consumers and markets.