The Federal Housing Finance Agency (FHFA) has issued a new order requiring Freddie Mac and Fannie Mae to consider cryptocurrency assets in mortgage evaluations.
New FHFA Directive
The FHFA has issued Decision No. 2025-360, mandating Freddie Mac and Fannie Mae to develop frameworks for evaluating crypto assets, such as Bitcoin and stablecoins, when assessing borrower eligibility for mortgages. This marks a significant shift from the long-standing practice requiring crypto-to-cash conversion.
Reactions to the Decision
FHFA Director William Pulte announced the decision in line with President Donald Trump's vision. Redfin economist Daryl Fairweather noted that this decision is a win for crypto holders and modernizes lending, particularly benefiting younger, crypto-savvy buyers.
Potential Risks and Impact
Despite positive expectations, the volatility of crypto assets remains a concern. The FHFA is requiring revised risk models due to daily price fluctuations. Freddie Mac and Fannie Mae are expected to submit proposals soon, with implementation timelines still under review. If adopted, this move could significantly reshape the $11 trillion U.S. housing market.
The incorporation of cryptocurrencies into mortgage processes may represent a significant step toward their broader acceptance within the U.S. financial system.
