- The U.S. Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to consider cryptocurrency assets as collateral for single-family home mortgage loans.
- Only cryptocurrency held at U.S.-regulated centralized exchanges will be eligible for consideration as collateral.
- FHFA Director William J. Pulte instructed these agencies to account for crypto price volatility and the portion of reserves held in digital assets.
- Pulte stated the move aligns with efforts to strengthen the United States as a leader in cryptocurrencies, though questions of conflict of interest have emerged.
- This comes as the housing market faces high interest rates and follows similar moves from specialized lenders already offering crypto-based mortgage options.
The U.S. Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to consider borrowers’ cryptocurrency holdings as collateral for single-family home mortgage loans. Both government-backed companies purchase mortgages from lenders and repackage them into federally guaranteed mortgage-backed securities.
In a recent announcement on social media, FHFA Director William J. Pulte said Fannie Mae and Freddie Mac must factor in valuation changes for crypto, reflecting the assets’ volatility and risk. The order states that only digital assets held at U.S.-regulated centralized exchanges qualify, and that the agencies should review what proportion of total reserves comes from cryptocurrencies.
Pulte stated the change supports President Trump’s vision to make the United States the crypto capital of the world. However, according to the Associated Press, his spouse owns between $500,000 and $1 million in both Bitcoin and Solana’s SOL token, raising questions about a potential conflict of interest.
The directive arrives at a time when the housing market is struggling due to rising interest rates, which may see a slight boost from new collateral requirements. During and after the 2008 financial crisis, the FHFA took control of Fannie Mae and Freddie Mac to restore stability, and has since focused on reducing risks and maintaining market stability.
Some critics caution that accepting crypto as collateral could introduce new credit risks due to the unpredictable nature of cryptocurrency prices. For example, bitcoin historically has fallen by 75–80% from peak to trough, with so-called “altcoins” experiencing even greater drops. FHFA acknowledged such risks, especially given the history of mortgage-linked financial crises.
Specialized lenders such as Figure Technologies have already begun offering mortgages backed in part by cryptocurrency assets since 2022. This signals a gradual adaptation within pockets of the industry to digital asset trends, even as traditional regulators remain cautious about stronger links between crypto and mainstream finance.
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