U.S. Senator Cynthia Lummis has introduced a bill that requires federal housing agencies to consider cryptocurrency in mortgage evaluations. This move may change mortgage rules and provide opportunities for young buyers.
21st Century Mortgage Act
On July 29, Senator Cynthia Lummis introduced the 21st Century Mortgage Act, which would require Fannie Mae and Freddie Mac to factor cryptocurrency into single-family mortgage evaluations. The proposal codifies a recent directive from Federal Housing Finance Agency Director William Pulte and formally instructs the two government-sponsored enterprises to consider digital assets held on public blockchains as part of borrowers' financial profiles, without requiring conversion into U.S. dollars.
Response to Youth Housing Crisis
Senator Lummis' push to include crypto in mortgage assessments is a direct response to a generational wealth gap that has left millions of young Americans locked out of homeownership. With U.S. Census Bureau data showing just 36.6% of adults under 35 own homes, the lowest rate since tracking began in 1982, traditional paths to property ownership are failing.
Criticism and Potential Risks
While Lummis frames the move as financial progress, Democratic lawmakers warn that allowing volatile digital assets into mortgage underwriting could pose risks to the stability of the housing market and the financial system.
Senator Lummis' bill raises significant questions regarding the current state of mortgage lending and housing accessibility for young Americans, yet its implementation could involve considerable risks in the market.
