The director of the Federal Housing Finance Agency (FHFA), Bill Pulte, announced on X (formerly Twitter) this afternoon that the GSE – The GSES of Mortgage Fannie Mae and Freddie Mac – will soon begin to consider cryptocurrency as an asset for unifamilial loans.
By displaying a screenshot of its official directive, Pulte wrote that “after significant studies”, the choice was made “to count the cryptocurrency as an asset for a mortgage”.
“Will be one of the best things I do in the office,” Pulte wrote in a follow -up article.
Cryptocurrency, digital assets which are generally exchanged by decentralized networks, are generally not supported by governments or banks. Supporters of technology praise its decentralized nature and their potential to create efficiency in transactions, while criticism highlights a lack of regulation or inherent value as leading to scams and volatility.
In order for the crypto to be considered by Fannie and Freddie in loans, it must be stored on a “centralized exchange regulated by the United States subject to all applicable laws”, according to the order.
In order, Pulte has said that FHFA “has now determined that taking into account the borrower’s additional assets in the assessment of unifamilial mortgage risks of companies can allow companies to assess the full spectrum of information on available assets to facilitate the sustainable property of household borrowers.”
The order is in force immediately and “should be implemented as soon as reasonably practical”. Crypto does not need to be converted into dollars to be considered an asset, depending on the order, a change compared to previous directives.
The way in which the consideration of the cryptographic assets of Fannie and Freddie will affect the housing markets is not clear. A 2024 study by Pew Research revealed that 17% of adults had already owned or exchanged cryptocurrencies, with a slightly higher percentage of the higher income population or commercial assets.
The National Association of Real Estate Agents (NAR) wrote optimistic about the potential of Crypto technology in 2023. But he also warned against risks, noting that the crypto “could depreciate value between the contract and the dates of settlement” during a home transaction.
More specifically, NAR urged the agents registered to request proof of cash proof to demonstrate that buyers “could finish the purchase without cryptocurrency if necessary”.
Crypto parts are widely known for their volatility, values fluctuating massively in hours or even minutes, and new parts created regularly with little surveillance or regulation. The same research study Pew revealed that 63% of Americans have “little or no confidence” that cryptocurrencies are currently reliable and safe.
President Donald Trump, however, made crypto an objective of his second term, ordering Creation of a “strategic reserve” of Bitcoin (the original part of the crypto) and launch of its own coin in defense of the defenders of government ethics, underlined These pro-Crypto policies could benefit Trump financially.
Pulte, on Twitter, thanked Trump for having “made the United States the world capital of cryptography!”
“In addition, each company is responsible for considering additional risk attenuations according to their own assessment, including market volatility adjustments and the guarantee of sufficient adjustments based on risks to the share of reserves composed of cryptocurrency,” said the order.
According to order, Fannie and Freddie are intended to “prepare a proposal” on the way in which they will consider the crypto.
It is a story in development. Stay listening to Rismedia for updates.
