[Surprising news!] Could a home loan be taken out with Bitcoin? A big step forward in the US!
Hello everyone! I'm John, also known as Blockchain Brother.
What would you think if your crypto assets (digital assets exchanged over the internet) such as Bitcoin were officially recognized as "savings" when buying a house? You might think, "That's just a dream, right?" But, big news has come out of the US that brings that future much closer!
Today, I'll explain this groundbreaking news in a way that's easy for everyone to understand!
What happened? A revolution in American mortgages!
The news this time was from the United StatesFHFA (Federal Housing Finance Agency)This is an announcement from a government agency that oversees the entire mortgage market in the United States.
The FHFA has taken legal action against two of the biggest companies in the U.S. mortgage industry:Fannie MaeとFreddie MacThese two companies play a role like the "heart of mortgages," purchasing mortgages lent by banks and other institutions and continuing to supply money to the market.
So what were those instructions?
"When screening for a mortgage, make sure to properly recognize applicants' crypto assets, such as Bitcoin, as assets."
That's what it was!
To be more specific, when taking out a mortgage, there is an examination to see if it is okay to lend money to this person. At that time, it is very important to consider how much savings and assets (technically called "reserves") the applicant has. This is to see whether the applicant has enough savings to repay the loan even if they lose their job.
Until now, the assets that were recognized were mainly bank deposits and stocks. However, with the latest directive,"Crypto assets whose origins can be properly verified"If so, it will be considered as personal asset, just like bank deposits, etc. This is really amazing!
Why is this "great news"? Three points to consider!
You may be thinking, "Oh, that's just an American thing," but this is an event that has huge implications for the future of blockchain and crypto assets. I've summarized it in three points.
- Point 1: Proof that cryptocurrencies are recognized as "real assets"
Until now, crypto assets have often been seen as having unstable values or being suspicious. However, they have now been officially recognized as "assets" in the very conservative financial sector that is so closely related to people's lives - American mortgages. This means that crypto assets have taken a step towards becoming a socially trusted asset class, just like stocks and real estate. - Point 2: This may encourage more people to own crypto assets
For many people, buying a home is the biggest purchase they will make in their life. If the cryptocurrency they own can be used to apply for a loan, more people may think, "I might as well get some Bitcoin." In this way, cryptocurrency will become more familiar to them, and its popularity may accelerate. - Point 3: Potential to expand beyond home loans
Once a precedent is set in the large area of home loans, this trend may spread to other financial services, such as car loans or education loans. We can look forward to a future in which crypto assets are used not just for investment and payments, but in a variety of areas that support our lives.
However, don't forget to take note of some points!
Of course, this news is a great step forward, but there are some caveats.
First of all, this instruction does not mean that you will be able to pay your mortgage directly with Bitcoin."Proof of assets"This means that it can be used as a.
The article also mentioned the word "properly documented." This means that you need to be able to properly prove how you obtained the cryptocurrency and that it is clean money that has not been involved in money laundering (the act of hiding money obtained through crime, etc.). It doesn't mean that anyone can use any cryptocurrency.
John's comment
Wow, I feel like we've finally come this far. When I first got interested in blockchain, Bitcoin was still called a "suspicious digital currency." It's really moving that now it's recognized as an "asset" in the public mortgage screening process in the United States. I think this is a big step toward crypto assets becoming a part of our lives, not something special.
This article is based on the following original articles and is summarized from the author's perspective:
FHFA Orders to Recognize Bitcoin And Other Cryptos in
Mortgage Assessments