00:00 Speaker A
41% of our customers have the money to pay the monthly payment on their mortgage. I mean, they’re renting right now. They’re already paying someone else’s their landlord’s mortgage. and they’ve got the credit scores, but they don’t have the down payment to fund the mortgage. and the industry uses a very narrow definition of what qualifies for a down payment up to now. 5 trillion of checking and savings accounts, but consumers have 35 trillion invested in stocks, bonds and digital assets. and this innovation unlocks all of that as being eligible for a down payment.
00:36 Speaker B
Does the person, does the couple, person, whatever they, whoever they may be, do they have to put cash down?
00:43 Speaker A
They showed up to the closing table and they didn’t write a check or send a wire. All they did was pledged their Bitcoin in their Coinbase account to the better wallet in Coinbase custody and that was it.
01:00 Speaker B
How do you make money and how does Coinbase make money?
01:03 Speaker A
Uh, we make money because uh we make the interest rate on the mortgage and we make the gain on sale when we securitize that mortgage with Fannie May. Um, the benefit for Coinbase is they make money on Coinbase custody and they provide value to the consumer. Coinbase has been an amazing partner. What’s more interesting is if you’re a Coinbase one member for this couple, they bought a $500,000 house in Ann Over, Michigan. They got $5,000 towards closing credits from better on the mortgage. so they showed up to closing table with nothing no check to write.
01:46 Speaker B
What would you say to those that this that would say that this fuels some of the activity we saw in 2000, 2008. People are going to take out too much home because they have digital assets in an account somewhere and they can’t really afford the home to begin with.
02:00 Speaker A
That’s not actually true anymore because what happened after the financial crisis is there was a rule put in called the ability to repay rule. and that for the first time put in debt to income ratios as part of the monthly uh payment and for the calculation of a mortgage. So this couple, they’ve got great credit, they had plenty of uh savings, they didn’t want to liquidate that savings, pay capital gains and then lose that upside to buy a home and now they didn’t have to do that. and so they’re in this house for $2,400 a month for a $500,000 house. Um, amazing.
02:40 Speaker B
What happens to that payment? You uh Bitcoin has fallen through a trap door. I mean it’s having a horrible few months. What happens to that payment uh if their holdings go down in value?
02:51 Speaker A
Nothing.
02:52 Speaker B
Nothing.
02:52 Speaker A
It’s nothing. No margin calls, no market value triggers. This is a 30-year mortgage. As long as you pay that mortgage on time, you get to have keep your crypto, you get to keep your digital assets and you get to keep the house.