Fannie Mae and Freddie Mac Ordered to Consider Crypto as Asset for Mortgages

Fannie Mae and Freddie Mac have been ordered to consider cryptocurrency as an asset for single-family mortgage loan risk assessments.

U.S. Federal Housing FHFA Director William J. Pulte said in a Wednesday (June 25) post on X that he ordered the organizations to do so.

“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage,” Pulte said in the post.

In the order attached to the post, Pulte said he ordered the change because cryptocurrency may offer an opportunity to build wealth outside of the stock and bond markets, cryptocurrency has not typically been considered in the mortgage risk assessment process, and the consideration of additional borrower assets in that process “may enable the Enterprises to assess the full spectrum of asset information available for reserves and to facilitate sustainable homeownership to creditworthy borrowers.”

The order directs Fannie Mae and Freddie Mac to each prepare a proposal for making this change to their single-family mortgage loan risk assessments, consider only cryptocurrency assets that are stored on a U.S.-regulated centralized exchange, and consider additional risk mitigators.

“Prior to implementing any changes, each Enterprise must submit and receive approval from its Board of Directors prior to submitting to U.S. Federal Housing FHFA for review,” the order said.

Pulte said in a Monday (June 23) post on X that his department would review whether crypto holdings should affect Americans’ mortgage applications.

Currently, Fannie Mae and Freddie Mac require that virtual currency only be used for “closing and reserves if it has been exchanged into U.S. dollars and is held in a U.S.- or state-regulated financial institution. There must be sufficient documentation to verify that the funds originated from the borrower’s cryptocurrency account.”

Bitcoin and bitcoin funds are increasingly being used as a form of collateral in loans issued by big banks — used as inputs to determine applicants’ net worth and liquidity, and by extension, loan terms, PYMNTS reported June 17.