TLDR

FHFA approves crypto for mortgage risk checks.

Borrowers can use crypto without converting it.

Trump backs wider crypto adoption in housing.

Fannie and Freddie now recognize digital assets.

Crypto wallets can help secure home loans.

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to include crypto in their mortgage risk assessments. This directive represents a significant policy adjustment aimed at broadening asset recognition for home loan applicants. The decision aligns with U.S. President Donald Trump’s broader agenda to promote crypto across federal institutions.

The U.S. Federal Housing Finance Agency (FHFA) has ordered Fannie Mae and Freddie Mac to begin treating cryptocurrency as an asset in mortgage risk assessments.

This allows crypto to be considered without conversion to USD, provided it’s held on a regulated U.S. exchange. pic.twitter.com/uRnV9W6POA

— Satoshi Club (@esatoshiclub) June 25, 2025

Fannie Mae and Freddie Mac will treat crypto holdings as part of borrower reserves when evaluating loan eligibility. This change eliminates the need for applicants to convert digital assets into U.S. dollars. The move is expected to support wider access to housing credit through more inclusive asset evaluations.

The FHFA suggested this approach will allow lenders to consider a fuller financial picture when assessing single-family mortgage applicants. Both GSEs remain under FHFA supervision following the 2008 financial crisis. They currently guarantee over half of the mortgage loans in the United States.

Crypto Holdings Count as Reserve Assets for Borrowers

Under the new FHFA policy, crypto can be used as a reserve asset. The directive provides new flexibility for borrowers who maintain substantial crypto positions but lack traditional liquid assets. Borrowers will not be required to sell or convert their crypto holdings to qualify for home loans.

Digital asset volatility remains a concern, yet the directive signals trust in regulated exchanges and verified account balances. FHFA has not disclosed which cryptocurrencies will qualify, but market-leading assets such as Bitcoin and Ether are expected to be included. These assets must be held on platforms that meet U.S. regulatory standards.

The directive could open new opportunities for crypto holders seeking mortgages without compromising long-term investment positions. This mirrors practices already seen in crypto-backed lending.

Policy Aligns with Trump Administration’s Crypto Vision

The directive follows recent moves by the Trump administration to expand crypto’s role in U.S. economic policy. President Trump has publicly supported digital asset integration across banking, housing and financial markets. His administration has backed several crypto-friendly regulatory appointments and initiatives.

FHFA Director William Pulte said the new rule supports sustainable home ownership and reflects the need for updated financial risk models. The agency emphasized the importance of recognizing emerging asset classes, including crypto. While crypto markets remain volatile, the directive indicates strong federal confidence in the asset class.

Fannie Mae and Freddie Mac will begin adjusting internal systems to incorporate crypto-based risk metrics. This will include new protocols for validating wallet balances and assessing liquidity levels of crypto assets. Full implementation timelines have not been disclosed but are expected to roll out in stages.

The move by FHFA mirrors growing institutional use of crypto for collateralized financial products. JPMorgan is developing crypto-collateral services for select clients, while firms like Circle and Coinbase are integrating stablecoins into futures markets. These shifts support broader market acceptance and utility of crypto in established finance.

The post FHFA Orders Fannie Mae and Freddie Mac to Recognize Crypto in Mortgage Assessments appeared first on CoinCentral.

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Filed under: News - @ June 25, 2025 9:27 pm