The US Federal Housing Finance Agency (FHFA) introduces major changes in mortgage lending that could influence the housing market. Now, cryptocurrency can be used as an asset for mortgage applications.
Changes in Mortgage Lending
The FHFA, led by William Pulte, has issued a directive directing Fannie Mae and Freddie Mac to prepare proposals for the acceptance of cryptocurrency as assets for mortgage applications. According to a statement posted on the X platform, the FHFA framed the decision as a step towards innovation and aligning with the Trump administration’s ambitions to make the US the global capital for digital assets. > “After significant studying and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.” > > *Pulte.*
The directive specifies that only cryptocurrencies evidenced and stored on a US-regulated centralized exchange will be considered, and it instructs to assess additional risk mitigants.
Crypto Community's Reaction
The new FHFA initiative comes at a crucial time for the US housing market, which is facing declining mortgage origination and rising interest rates. Crypto enthusiasts welcomed the decision, arguing that it opens up opportunities for a new class of buyers who have amassed wealth in digital assets. “Big move for crypto legitimacy—if digital assets become mortgage-eligible, it could unlock home loans for a new class of buyers and accelerate crypto’s integration with TradFi,” commented an author on the X platform. > > *“This could reshape how financial institutions value digital wealth, but execution details will drive the real impact.”* > > *Author.*
Supporters believe that the transparency of blockchain technology provides a clear “paper trail” for lenders.
The Future of Mortgages with Cryptocurrency
Although the initiative is viewed as a significant step forward, Fannie Mae and Freddie Mac are required to submit comprehensive proposals to their boards for approval before sending them to the FHFA. This order has taken effect immediately and should be implemented as soon as reasonably practical.
Under Pulte's leadership, appointed by President Trump in March this year, the FHFA has begun taking a more crypto-friendly approach, overseeing over $8.5 trillion in mortgage funding.
The opportunity to use cryptocurrency as an asset for mortgage applications could revolutionize the housing market in the US, opening new horizons for buyers and facilitating the integration of digital assets into the financial system.
