More
than
10%
of
Americans
hold
digital
assets,
with
some
maintaining
six-
and
seven-figure
portfolios,
according
to
Rate’s
press
release.
But
despite
that
growth,
mortgage
lenders
have
generally
required
borrowers
to
liquidate
cryptocurrency
holdings,
potentially
triggering

tax
consequences,
or
to
use
pledged-loan
structures
that
can
limit
control
over
the
assets.

RateFi
is
designed
to
allow
borrowers
to
use
verified,
nonliquidated
cryptocurrency
as
qualifying
income
and
reserves
within
existing
mortgage
frameworks.

“Digital
assets
are
real
assets,
yet
mortgage
lending
has
treated
them
as
invisible,”

Kate
Amor,
executive
vice
president
and
head
of
enterprise
products
at
Rate,
said
in
a
statement.
“RateFi
changes
that.
We
built
this
product
to
apply
common-sense

underwriting
to
a
modern
financial
reality,
allowing
qualified
borrowers
to
use
their
crypto
without
selling
it,
without
gimmicks,
and
without
stepping
outside
established
lending
standards.
RateFi
represents
the
first
phase
of
a
broader
digital
asset
lending
strategy
the
company
plans
to
expand
over
time.

“As
the
definition
of
wealth
evolves,
lending
needs
to
evolve
with
it.
RateFi
is
the
first
step
in
Rate’s
broader
digital
asset
lending
roadmap,”
Amor
added.
“RateFi
expands
access
responsibly
to
meet
crypto-wealthy
borrowers
where
they
are
today,
while
still
maintaining
the
same
disciplined
credit
standards
that
define
our
Rate
portfolio
product
suite.”

The
program
operates
within
existing

non-QM
structures
and
applies
standard

anti-money
laundering
and
know-your-customer
verification
processes,
the
company
said.

“Crypto
lending
gets
a
lot
of
headlines,”
said

Shant
Banosian,
president
of
Rate.
“But
this
business
is
about
closing
loans
consistently,
compliantly,
and
at
scale.
RateFi
runs
within
our
existing
platform,
providing
the
underwriting,
pricing,
and
operational
support
our
loan
officers
rely
on
every
day.
It
gives
them
another
way
to
say
yes
to
qualified
borrowers
without
adding
complexity.

“Digital
assets
represent
real
wealth,”
Banosian
added.
“RateFi
expands
who
our
loan
officers
can
help
and
strengthens
our
ability
to
serve
today’s
borrower,
without
adding
friction
to
the
process.”

RateFi’s
launch
comes
at
a
time
when
cryptocurrency
is
increasingly
becoming
accepted
by
lenders.
Last
month,

Newfi
Lending

announced
that
it’s
allowing
real
estate
investors
to
use
cryptocurrency
assets
to
meet
reserve
requirements
for
debt-service-coverage
ratio
(DSCR)
loans.

Newrez
also
recently

announced
that,
starting
in
February,
it
would
let
borrowers
use
eligible
cryptocurrency
assets
for
mortgage
qualification,
without
requiring
liquidation,
across
its
Smart
Series
loan
product
suite.

“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,”
said
Leslie
Gillin,
Newrez’s
chief
commercial
officer.