Federal Regulator Opens Doors to Considering Crypto in Mortgage Applications
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FHFA Director William Pulte directed Fannie Mae and Freddie Mac to draw up suggestions on how lenders could include cryptocurrency holdings when considering a borrowers' assets.Key Takeaways
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The Federal Housing Finance Administration Director William Pulte said in a post that he has instructed Fannie Mae and Freddie Mac to consider cryptocurrencies as part of a mortgage application.
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By allowing cryptocurrencies to count as an asset, borrowers who have crypto holdings could be seen as being in better financial position to pay the mortgage, potentially increasing their chances of getting the loan.
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The order instructed Fannie Mae and Freddie Mac to develop proposals that would allow lenders to consider cryptocurrencies, but it offered few other specific details.
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Learn More Powered by Money.com - Yahoo may earn commission from the links above.Holders of cryptocurrencies may now have an easier time acquiring a mortgage after a key federal regulator made a move that could let lenders consider a homebuyer’s digital holdings during the mortgage application process.
In a social media post Wednesday, Federal Housing Finance Administration Director William Pulte said he has directed Fannie Mae and Freddie Mac to find a way for lenders to consider cryptocurrency holdings when deciding whether a borrower has sufficient assets to obtain a mortgage.
The FHFA oversees Fannie and Freddie, government-sponsored enterprises that guarantee mortgages and purchase home loans on the secondary market. While Fannie Mae and Freddie Mac don’t issue mortgages, they can set rules on what type of mortgages they are willing to buy.
“Today is a historic day in the cryptocurrency industry and the mortgage industry, whereby Fannie Mae and Freddie Mac are now positioned to involve Cryptocurrencies in Mortgages,” Pulte wrote in an X post today.
In a document posted to X, Pulte directed officials at Fannie Mae and Freddie Mac to propose guidelines on how lenders should weigh a mortgage applicant's cryptocurrency holdings when deciding whether to issue a mortgage.
By allowing cryptocurrencies to count as assets, borrowers with crypto holdings could be seen as being in a better financial position to meet their mortgage payments, potentially increasing their chances of getting the loan.
The order doesn’t specify which cryptocurrencies will be accepted, but it did say that cryptocurrency assets must be “evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws.” The order also said Fannie and Freddie can consider other risks to cryptocurrencies, including market volatility.
Pulte said the move was a part of President Donald Trump’s larger vision of making the U.S. the “crypto capital of the world.”
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