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23h ago

FHFA Orders Fannie Mae and Freddie Mac to Consider Cryptocurrency for Mortgages

It requires board-approved plans detailing the inclusion of U.S.-regulated crypto assets with volatility controls to be sent to FHFA for approval.

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

  • The FHFA directed Fannie Mae and Freddie Mac to count cryptocurrency holdings as assets in single-family mortgage risk assessments.
  • The order specifies that only digital assets held on U.S.-regulated centralized exchanges qualify and forbids mandatory conversion to U.S. dollars.
  • Both firms must design volatility safeguards and deliver board-approved proposals on crypto inclusion to the FHFA for final review.
  • FHFA Director William Pulte said the move aligns with President Trump’s vision to make the United States the “crypto capital of the world.”
  • The policy aims to broaden credit evaluations and help creditworthy borrowers leverage diverse asset portfolios, including crypto, to secure home loans.