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11h ago

FHFA Orders Fannie Mae and Freddie Mac to Count Crypto in Mortgage Assessments

Agencies must design safeguards for volatile cryptocurrency held on US-regulated exchanges; proposals will need board and FHFA 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

Overview

  • FHFA Director William Pulte issued the directive on June 25 instructing Fannie Mae and Freddie Mac to treat cryptocurrency as an asset in single-family mortgage risk assessments.
  • Borrowers will be able to include crypto holdings in loan applications without converting them to US dollars, provided assets are verifiable and held on regulated centralized exchanges.
  • Fannie Mae and Freddie Mac are tasked with drafting proposals that incorporate risk mitigants such as market-volatility adjustments to protect underwriting standards.
  • Each enterprise must secure approval from its board of directors before submitting the final framework to the FHFA for review and sign-off.
  • The move aligns with President Trump’s agenda to boost cryptocurrency adoption and modernize US housing finance policy.