Weiss analyst cites the risk of the current uncertain macroeconomic situation and the sharp fall in the crypto prices this year.
Some market players are offering 100 percent crypto-backed loans without any down payment.
Popular rating agency Weiss Ratings has warned investors to remain careful with crypto-backed mortgage loans owing to the current economic situation in the U.S. This comes as there’s been a growing number of players offering crypto-backed mortgage loans in the market.
In the report, Weiss analyst Jon D. Markman talks about a Miami-based digital banking firm Milo. The firms recently rolled out 30-year mortgages backed by digital assets such as Bitcoin (BTC), Ethereum (ETH), or stablecoins as collateral.
Interestingly, Milo doesn’t ask for any kind of down payment and offers the loan at a very attractive interest of 3.95 percent to 5.95 percent. In the report, Markman writes:
The product seems to be like a win-win, assuming real estate and crypto prices keep rising
