In a groundbreaking shift in the U.S. housing finance system, federal housing finance institutions issued Fannie May and Freddie Mac directives to formally consider cryptocurrencies as assets in the risk assessment of single-family mortgages.
The move, signed on Wednesday by FHFA Director William J. Prute, this time at the heart of American home lending, marks a new era of crypto integration into traditional financial infrastructure.
The order directs both housing finance giants to develop proposals that include digital assets without requiring borrowers to settle in US dollars prior to the loan closure.
Pulte said in a post on X that the move coincides with President Donald Trump’s vision and “making the United States the crypto capital of the world.”
Historically, cryptocurrencies have been excluded from the underwriting framework due to their volatility, regulatory uncertainty, and preparation that cannot be easily verified. This directive changes it.
This decision will be made at the point where we increase the institutional adoption of crypto across banks, payments and federal policies.
“Cryptocurrency is an emerging asset class that may offer opportunities to build wealth outside the stock and bond markets,” the order acknowledges the growing role of crypto in its domestic financial portfolio.
The directive limits consideration of digital assets that can be stored in a US regulated central exchange and could be clearly demonstrated. Additionally, taking into account Crypto’s market volatility, Fannie Mae and Freddie Macs need to develop internal adjustments to ensure that the risk-weighted reserve made up of crypto will not compromise underwriting criteria.
Under the directive, both companies must submit an assessment proposal to the board of directors for approval and to FHFA for final review.
Fannie Mae and Freddie Mac were placed under government control in September 2008 as government sponsored companies or as entities known as GSE.
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