U.S. Mortgage Giants Directed to Consider Crypto Assets in Loan Approvals

The Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to develop proposals for including cryptocurrency holdings in single-family mortgage risk assessments. This marks a significant shift in how borrower reserves may be evaluated, potentially allowing crypto assets to be considered without first converting them to fiat.

FHFA Director William J. Pulte emphasized the need for sound underwriting practices and safeguards against market volatility. Only cryptocurrencies held on regulated U.S. exchanges will be eligible, excluding self-custodied assets. The MOVE aligns with broader efforts to position the U.S. as a leader in digital asset adoption.

Critics argue the policy's limitations may curb its impact, but proponents see it as a milestone for institutional crypto integration. The directive requires board-approved proposals from both institutions before implementation.