Remember 2008? You don't need to make good plans if the taxpayers are assuming all the risk.

Anonymous wrote:Hi I work as a lawyer in mortgages--basically the regulator of Fannie Mae and Freddie Mac said they should consider crypto (certain ones of them e.g. Bitcoin and a few others) as assets when underwriting.

Fannie and Freddie don't lend but they buy loans from the lenders (your bank, your mortgage company, etc.).

Accordingly, Fannie and Freddie set the standard so those standards are passe on the originating institution in their guidelines. Therefore, if F/F say to consider it, your bank will consider it--but only as a reserve asset like they would consider stocks or cash in the bank.

I hope this helps.

Thanks, that's good to know. Bottom line is that crypto assets are now to be treated as legitimate assets just like real estate, stocks, and other financial investments when lenders are evaluating a potential mortgage borrower's financial stability.

Hi I work as a lawyer in mortgages--basically the regulator of Fannie Mae and Freddie Mac said they should consider crypto (certain ones of them e.g. Bitcoin and a few others) as assets when underwriting.

Fannie and Freddie don't lend but they buy loans from the lenders (your bank, your mortgage company, etc.).

Accordingly, Fannie and Freddie set the standard so those standards are passe on the originating institution in their guidelines. Therefore, if F/F say to consider it, your bank will consider it--but only as a reserve asset like they would consider stocks or cash in the bank.

I hope this helps.

I buy bitcoin ETFs, but a large part of me is skeptical about all of it. I think we are headed toward a fiscal meltdown at some point. I wonder if bitcoin will be viewed at that point as a safe haven, inflation proof asset like gold or more of a speculative asset that will be panic sold. Anyway, because I have cognitive dissonance on the issue. That I see it skyrocketing over the last 16 years, but that it could fall apart, I diversify assets. You know you can buy high income dividend or distribution paying ETFs like BTCI or MSTY, which profit off the volatility of crypto/bitcoin and generate insane weekly or monthly distributions? The trade off is nav erosion in most cases, but seriously look into some of these products.

If I understand, OP is asking about the new rule that banks need to also consider crypto holdings in addition to the traditional financial assets of a borrower before making the loan. I confess I am not sure if thr rule is actually active now or just a proposal. But to me would just be another sign the US financial system is going down the drain. Crypto assets are extremely volatile and they can go from a lot to nothing, can be stolen and so on. If we start having banks making mortgage loans to birrowers based on assets that include something like crypto, we are going to end up in another major financial crisis. Happens when you elect president a criminal who only thinks about enriching himself and crypto is bribe paradise

My view: "crypto" is largely full of speculative bubble ponzi schemes. Bitcoin is the only true crypto asset -- there is no second best.

As to where to start learning about it, there are many good YouTube channels and podcasts that can give you the basics of bitcoin. BTC Sessions (YouTube) and The Bitcoin Podcast (Walker), The Bitcoin Way podcast, and the What Bitcoin Did podcast are some of my favorites. Robert Breedlove did a multipart podcast series with Michael Saylor on his podcast What is Money (I think it's like 10 hours).

This video is a nice introduction to the concept of bitcoin: https://youtu.be/YtFOxNbmD38?si=Ypbc9WoKfeY0hnyX

Fidelity has published regular pieces on bitcoin, and some of them give some general background for education on the topic: https://www.fidelitydigitalassets.com/research-and-insights/coin-report-bitcoin-btc

There are some great books out there as well. "The Bitcoin Standard" is one you'll hear frequently; "Broken Money" is another.

There's even a Bitcoin Policy Institute in DC now, and I'm sure they have some information you might learn from: https://www.btcpolicy.org/

I don't tell people to "buy bitcoin" -- I tell people to "learn about bitcoin" ... if you do, you'll be able to decide if you should get some.

I am so interested in this crypto topic

How can banks possibly get comfortable lending against crypto without data to support this?

I don’t understand crypto and how a bank could quickly access this to get repaid.

Yet some banks are considering lending. I personally am trying to educate myself on crypto yet I don’t understand it! Any recommendations on how I can become more well versed? Tutorial for dummy’s?

Thanks