Weiss Ratings issues warning over crypto mortgage risks
Weiss analysts are wary of the usage of volatile crypto assets as collateral for long-term property loans.
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 by Bitcoin (BTC), Ether (ETH) or stablecoins as collateral. The firm requires zero down payments and its loan rates vary between 3.95% and 5.95%.
In the Tuesday report, Weiss analyst Jon D. Markman urged 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’s upcoming policy changes.
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