FHFA Orders Fannie Mae, Freddie Mac to Include Crypto in Mortgages

FHFA Mandates Crypto as Mortgage Assets

The FHFA, led by Director Bill Pulte, has mandated that both Fannie Mae and Freddie Mac count certain cryptocurrency assets when assessing mortgage applications. Bill Pulte’s interest in cryptocurrencies is well-documented, including significant holdings in Bitcoin and Solana. The order aligns with efforts to position the United States as a leader in crypto adoption. Only cryptocurrencies held on U.S.-regulated centralized exchanges are eligible under this policy.

Potential Surge in Mortgage Applications

The immediate effect could see an increase in qualified mortgage applicants who hold substantial crypto assets. Crypto market participants are expected to pay close attention to the policy’s roll-out. The directive is part of a broader initiative to integrate cryptocurrencies into traditional financial systems, which should affect capital flows and transaction volumes. Analysts believe this move could nudge more investors and institutions towards regulated crypto exchanges.

Historical Shift in Asset Evaluation

Historically, Fannie Mae and Freddie Mac have only considered cash assets held in traditional banks. Cryptocurrencies were excluded from mortgage calculations. Similar actions in other sectors have shown that regulatory acceptance can push market acceptance. Experts speculate the policy could trigger a greater institutional acceptance of cryptocurrencies, considering the scale of mortgage markets.

The full consequences remain to be seen as the implementation progresses, but industry watchers are closely monitoring for signs of increased liquidity and asset flow into the U.S. housing sector.