Particle.news
Download on the App Store
12 ARTICLES
·
yesterday

FHFA Directs Fannie, Freddie to Integrate Crypto Into Mortgage Risk Assessments

Both firms must soon submit FHFA-approved guidelines for using verified crypto holdings as mortgage collateral

FILE- This April 21, 2018, file photo shows the Fannie Mae headquarters building in Washington. (AP Photo/J. David Ake, File)
Fannie Mae headquarters is seen in Washington, DC, U.S. on February 21, 2014. REUTERS/Kevin Lamarque/File Photo
FILE - This July 13, 2008, file photo, shows the Freddie Mac headquarters in McLean, Va. (AP Photo/Pablo Martinez Monsivais, File)

Overview

  • FHFA Director William Pulte ordered Fannie Mae and Freddie Mac to draft proposals that include cryptocurrency holdings in single-family mortgage risk assessments without requiring borrowers to liquidate assets into dollars.
  • Only crypto assets evidenced on U.S.-regulated, centralized exchanges will qualify under the directive.
  • Proposed guidelines must outline risk-mitigation measures for crypto’s price volatility and be filed with the FHFA “as soon as reasonably practical” for approval.
  • The decision reflects President Donald Trump’s push to establish the U.S. as the “crypto capital of the world” and aims to expand homeownership access for qualified borrowers.
  • Bitcoin’s price climbed above $107,000 after the announcement as industry participants praised the move and others cautioned against centralized custody limitations.