What's happened
The Federal Housing Finance Agency, led by William Pulte, has ordered Fannie Mae and Freddie Mac to consider cryptocurrency as an asset in mortgage lending assessments. This change aims to broaden the criteria for evaluating borrowers' creditworthiness without requiring crypto to be converted to dollars.
What's behind the headline?
Implications of the FHFA's Directive
- Broader Asset Recognition: By allowing cryptocurrencies to be counted as assets, the FHFA is acknowledging the increasing role of digital currencies in personal finance.
- Market Impact: This policy could lead to a surge in home loan applications from crypto holders, potentially stabilizing the housing market by increasing liquidity.
- Risk Considerations: While this move may benefit borrowers, it also introduces volatility risks for lenders, as crypto values can fluctuate significantly.
- Regulatory Framework: The requirement that only cryptocurrencies stored on U.S.-regulated exchanges be considered ensures compliance with existing laws, but may limit the types of crypto assets eligible for consideration.
- Future of Mortgage Lending: This shift could signal a broader trend in the financial industry, where digital assets become more integrated into traditional lending practices, reshaping the landscape of mortgage finance.
What the papers say
According to AP News, William Pulte emphasized that the FHFA's order is effective immediately, stating that banks should not require crypto assets to be converted to U.S. dollars for mortgage assessments. This sentiment is echoed by Business Insider UK, which highlights the potential for this policy to 'forever change' the mortgage lending landscape. The Independent notes that the FHFA's directive aims to expand how banks evaluate borrowers' creditworthiness, reflecting the growing popularity of cryptocurrencies as alternative investments. Bloomberg succinctly captures Pulte's announcement, reinforcing the urgency of this policy shift.
How we got here
This directive follows a growing recognition of cryptocurrencies as viable assets. The FHFA's move aligns with the Trump administration's pro-crypto stance, aiming to facilitate home ownership by expanding asset evaluations for potential borrowers.
Go deeper
- How will this affect homebuyers with crypto?
- What risks do lenders face with this new policy?
- Are there other countries considering similar measures?
Common question
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How Will Fannie Mae and Freddie Mac Integrate Crypto into Mortgage Assessments?
On June 25, 2025, a significant shift occurred in the mortgage industry as Fannie Mae and Freddie Mac were directed to consider cryptocurrency as an asset in mortgage evaluations. This change raises many questions about its implications for homebuyers and the broader financial landscape. Below, we explore key questions surrounding this new policy.
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How Will Crypto Assets Affect Mortgage Lending?
The recent directive from the Federal Housing Finance Agency (FHFA) to include cryptocurrency in mortgage assessments is set to transform the lending landscape. This change raises several questions about how crypto assets will impact mortgage lending and what it means for potential borrowers. Below, we explore common queries surrounding this significant policy shift.
More on these topics
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The Federal National Mortgage Association, commonly known as Fannie Mae, is a United States government-sponsored enterprise and, since 1968, a publicly traded company.
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The Federal Home Loan Mortgage Corporation, known as Freddie Mac, is a public government-sponsored enterprise, headquartered in Tysons Corner, Virginia.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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The Federal Housing Finance Agency (FHFA) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), and the...