The Federal Housing Finance Agency (FHFA) has ordered Fannie Mae and Freddie Mac to consider cryptocurrency as an asset for some mortgage loans. This development could significantly impact the mortgage lending market in the U.S.
Cryptocurrency and Mortgages: FHFA's New Decision
FHFA, led by William J. Pulte, in a letter dated June 25, directed Fannie Mae and Freddie Mac to prepare a proposal for utilizing cryptocurrency in assessing mortgage risks. This decision opens new opportunities for homebuyers interested in using crypto for mortgage applications.
How Cryptocurrencies Will Be Used
Pulte noted that crypto assets used in mortgage applications do not need to be converted to fiat beforehand. FHFA also stipulated that only cryptocurrencies that can be evidenced and stored on a U.S.-regulated centralized exchange, subject to all applicable laws, should be considered.
Crypto Economic Policy under Trump Administration
This directive is part of the broader strategy of the Trump administration aimed at fostering a more crypto-friendly environment in the U.S. Previously, Trump promised to make the U.S. the 'crypto capital' of the world, issuing several executive orders and appointing crypto-friendly regulators.
Thus, the FHFA's new policy may shift the landscape of mortgage borrowing, allowing buyers to utilize cryptocurrency, which could facilitate the integration of digital assets into traditional finance.
