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This is very helpful context, thank you. I should probably have dug a bit deeper into the announcement.
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I just have a (too deep and useless) fascination with mortgage market structure. My phd dissertation was on mortgages.
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Womp womp! There are a couple of major caveats to this announcement!
First, it is inaccurate to say that Fannie Mae backs the loan. This loan is a second lien on a home which has a primary mortgage backed by Fannie Mae. Fannie Mae likely has no involvement with this secondary loan.
Second, this requires heavy overcollateralization. Bitcoin is valued at 40% of market value, which means to borrow $1 you'll need to pledge $2.5 worth of Bitcoin.
In addition to the overcollateralization of your Bitcoin, the loan is also secured by a second-lien on your property. So if you fail to pay the loan, they could potentially go after both your bitcoin and your property.
The main positive would be that the interest rate on this second lien will be the same as for your primary mortgage. This would typically be a better rate than what you would get on traditional second-lien mortgages.
Mostly, it seems like a bad deal for borrowers who have other sources of credit. However, if you have a lot of extra bitcoin doing nothing, but not much cash for a downpayment, this could get you the cash needed at a decent interest rate.