{"id":441050,"date":"2022-05-03T07:42:31","date_gmt":"2022-05-03T04:42:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/weiss-ratings-issues-warning-over-crypto-mortgage-risks\/"},"modified":"2022-05-03T07:42:31","modified_gmt":"2022-05-03T04:42:31","slug":"weiss-ratings-issues-warning-over-crypto-mortgage-risks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/weiss-ratings-issues-warning-over-crypto-mortgage-risks\/","title":{"rendered":"# Weiss Ratings issues warning over crypto mortgage risks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2dca885c185\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2dca885c185\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/weiss-ratings-issues-warning-over-crypto-mortgage-risks\/#%E2%80%9D_Weiss_Ratings_issues_warning_over_crypto_mortgage_risks_%E2%80%9C\" >&#8221; Weiss Ratings issues warning over crypto mortgage risks &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Weiss_Ratings_issues_warning_over_crypto_mortgage_risks_%E2%80%9C\"><\/span>&#8221; Weiss Ratings issues warning over crypto mortgage risks &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNDYwNGZjYWUtNDY1Ni00NDk1LTgwZDUtMTdkNzY4NjI4YjNkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Florida-based ratings and research firm Weiss Ratings has fired out a warning over the risks of crypto mortgages amid the current economic climate in the United States. <\/p>\n<p>The company paid particular focus to Milo, a digital banking startup from Miami that offers 30-year mortgages backed by Bitcoin (BTC), Ethereum (ETH), or stablecoins as collateral. The firm requires zero down payments, and its loan rates vary between 3.95% and 5.95%.<\/p>\n<p>In the May 3 report, Weiss analyst Jon D. Markman <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/weissratings.com\/en\/pivotal-point\/crypto-backed-mortgages-spell-risk\">urged<\/a> caution with such mortgages, citing the poor performance of stocks and crypto this year, a U.S. housing bubble, rising interest rates, and the Federal Reserve&#8217;s upcoming policy changes. <\/p>\n<blockquote><p>\u201cThe product seems to be like a win-win, assuming real estate and crypto prices keep rising &#8230; except there are signs both bets are unlikely to be winners in the near term. Bitcoin is off by 40% since it reached $66,000 in November 2021.\u201d<\/p><\/blockquote>\n<p>\u201cAnd U.S. property prices now face headwinds from a change in Fed policy and rising mortgage rates,\u201d he added.<\/p>\n<p>Markman did conclude that not all crypto risk is bad, but it could be in the property sector, before adding \u201cno matter what the markets are doing, the potential to succeed in cryptocurrencies is real.\u201d<\/p>\n<p>Many crypto and stock investors have been negatively anticipating the potential market impacts of serious interest rate hikes this year as the Fed aims to reel in inflation. <\/p>\n<p>With both markets suffering from a lackluster performance due to a myriad of factors, macro analysts such as Alex Krueger have boldly suggested that the Fed\u2019s latest announcements set for this week \u201cwill determine the fate of the market\u201d moving forward. <\/p>\n<p>Removing the housing market from the equation, if the price of BTC or ETH were to plunge significantly over the next few months, there does <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be a fair amount of wiggle room for Milo users, however. <\/p>\n<p>According to the mortgage terms and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/help.milocredit.com\/en\/articles\/5915506-what-happens-if-my-cryptocurrency-goes-down-in-value\">conditions<\/a>, the price of the collateralized crypto assets \u201ccan dip in value with zero consequence as long as it doesn&#8217;t dip to 35% of the total loan amount.\u201d To avoid liquidation, users must top up their collateral within 48 hours of hitting the minimum percentage. While stablecoins could also be utilized in times of market volatility. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin \u2018bear market\u2019 may take BTC price to $25K, says trader with stocks due capitulation<\/em><\/strong><\/p>\n<p>Milo raised $17 million worth of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">Series<\/a> A funding in March and has plans to develop its mortgage products to meet larger demand, along with upping its headcount. <\/p>\n<p>However, Markman also raised concerns that Milo\u2019s \u201clarger plan is to pool crypto-backed home loans and offer them as bonds to asset managers and insurance companies,\u201d likening it to behavior that resulted in the 2009 housing market crash. <\/p>\n<blockquote><p>\u201cIt&#8217;s an interesting strategy \u2026 but given current market conditions, investors should be skeptical, especially with financial stocks. All of this should sound familiar. Pooling risky home loans, then selling them to unsuspecting asset managers, was the recipe for the Great Recession of 2009.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/weiss-ratings-issues-warning-over-crypto-mortgage-risks\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Weiss Ratings issues warning over crypto mortgage risks &#8220; Florida-based ratings and research firm Weiss Ratings has fired out a warning over the risks of crypto mortgages amid the current economic climate in the United States. The company paid particular focus to Milo, a digital banking startup from Miami that offers 30-year mortgages backed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":441051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNDYwNGZjYWUtNDY1Ni00NDk1LTgwZDUtMTdkNzY4NjI4YjNkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74891,124302,117,73808,71226,70359],"class_list":["post-441050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-ethereum","tag-housing-loans","tag-business","tag-loans","tag-real-estate","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=441050"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/441051"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=441050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=441050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=441050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}