Coinbase, Better make token-backed mortgages available to members

Coinbase and Better made their token-backed conforming mortgage generally available to Coinbase One members. The expanded offer became available on Aug. 12. Eligible borrowers can pledge crypto as collateral in the homeownership process. The first lien is structured as a standard conforming mortgage under Fannie Mae guidelines. Approved Coinbase One members can receive a lender credit equal to 1% of the mortgage value. The credit is capped at $10,000. The credit applies to standard mortgages, home equity lines of credit and refinances. Better applies the credit against closing costs and reflects it on the borrower's closing disclosure. The companies opened a waitlist in June. The waitlist represented more than $260 million in projected loan volume before general availability. The companies said 76% of respondents were already Coinbase One users. The companies said 60% of respondents planned to buy a home within six months. The product supports bitcoin and USDC as collateral for the down payment. Better Mortgage Chief Technology Officer Ziggy Jonsson said the partnership aims to expand access to homeownership by allowing members to pledge crypto without selling their holdings. Better has funded more than $110 billion in loans to date. Better said 41% of its pre-approved customers qualify based on income and credit but lack enough cash for a traditional down payment.