Rate has launched RateFi, a new mortgage product that enables qualified borrowers to use verified cryptocurrency holdings for income and asset qualification. This program allows individuals to leverage their digital assets without needing to liquidate them for the qualification process.
Key details of RateFi include:
Key takeaways
- Rate launched RateFi, a mortgage product that lets borrowers use verified cryptocurrency holdings toward income and asset qualification.
- Borrowers do not need to sell their crypto to qualify, though assets earmarked for down payments or closing costs must still be converted to conventional currency.
- The product sits within established non-QM structures and applies standard AML and KYC verification.
- Kate Amor, head of enterprise products, said digital assets are real assets that mortgage lending has treated as invisible.
- Rate describes it as among the first institutional-grade crypto mortgage programmes from an independent mortgage bank, and as the first phase of a wider digital asset lending strategy.
- Asset Use: Verified cryptocurrency can count towards income and asset qualification.
- Liquidation Requirement: While crypto can be used for qualification without selling, assets designated for down payments or closing costs must be converted to traditional currency.
- Compliance: RateFi operates within established non-QM structures and incorporates standard Anti-Money Laundering (AML) and Know Your Customer (KYC) verification processes, ensuring institutional-grade compliance.
Kate Amor, executive vice president and head of enterprise products at Rate, stated, “Digital assets are real assets, yet mortgage lending has treated them as invisible. RateFi changes that.” She added that the product applies common sense underwriting to modern financial realities, allowing qualified borrowers to use crypto without selling it or employing gimmicks, all while adhering to established lending standards. RateFi represents the initial phase of a broader digital asset lending strategy for the company.
According to Rate, RateFi is among the first institutional-grade mortgage programs offered by an independent mortgage bank, designed for scalability. Shant Banosian, president of Rate, highlighted that the program integrates into their existing platform, providing the necessary underwriting, pricing, and operational support without adding complexity for loan officers.
Research from Rate indicates that digital asset holders seek practical methods to utilize their existing wealth without triggering liquidation events or incurring unnecessary tax consequences. Banosian noted that RateFi expands the range of borrowers loan officers can assist, strengthening the company’s ability to serve contemporary clients.
Frequently asked questions
What is a non-QM mortgage?
A loan that falls outside the Qualified Mortgage standards, typically used where a borrower's income or assets do not fit conventional documentation. It is the existing framework RateFi operates within rather than a new category.
Why does not having to sell matter?
Selling crypto to qualify triggers a taxable event and forfeits any future appreciation. Rate's research found holders specifically wanted to use their wealth without forcing a liquidation or an unnecessary tax bill.
How does this affect loan officers?
President Shant Banosian said the programme runs on the existing platform with underwriting, pricing and operational support already in place, so it widens the pool of eligible borrowers without adding complexity to the officer's workflow.
