A major breakthrough could reshape the US real estate market as the Federal Housing Finance Agency (FHFA) requires Fannie Mae and Freddie Mac to consider cryptocurrencies as assets for mortgage applications.
FHFA Director William Pulte announced the major policy shift on Wednesday, requiring two government-sponsored businesses to prepare to accept cryptocurrencies as valid assets for home loan approvals.
FHFA's move fits Trump administration ambitions
The FHFA’s “Consideration of Cryptocurrencies as Assets in Risk Assessment” directive requires construction mortgage companies to propose the use of cryptocurrencies as reserves in single-family home loans.
According to a public statement on the X platform, the FHFA sees the decision as a step towards innovation and in line with the Trump administration’s ambition to make the United States a global cryptocurrency hub.
“After careful consideration and in line with President Trump’s vision to make the United States the cryptocurrency capital of the world, today I directed Fannie Mae and Freddie Mac to prepare to include cryptocurrencies as eligible collateral for mortgages.”
Counters.
The directive also stipulates that only cryptocurrencies that “can be proven and stored on a centralized exchange regulated in the United States, in compliance with all relevant laws” will be considered.
“Each business is required to self-assess and implement additional risk mitigation measures, including adjustments to offset market volatility, ensuring that cryptocurrency reserves have a reasonable risk-adjusted basis,” the official directive reads.
Cryptocurrency Community Receives FHFA Directive Positively
The directive comes at a time when the US housing market has seen a decline in mortgage lending due to affordability issues and rising interest rates.
The decision also comes after the U.S. Securities and Exchange Commission rescinded Staff Accounting Notice 121, which created barriers for banks to hold crypto assets on their balance sheets.
Proponents, especially cryptocurrency enthusiasts, say it will open up home ownership to a new group of people whose wealth is built on digital assets.
“A huge step forward for crypto legitimization – if digital assets qualify for mortgages, it will unlock home loans for a new group of adults and drive the integration of crypto with traditional finance,” Alva wrote on the X platform.
“This could change the way financial institutions value digital assets, but implementation details will determine the real-world impact.”
Alva.
They also emphasize the transparency of blockchain technology that can create a clear transaction trail for lenders.
While this is a major step, Fannie Mae and Freddie Mac must submit detailed proposals to their boards for approval before sending them to FHFA for review and adoption.
“The directive is effective immediately and should be implemented to the greatest extent possible,” FHFA said.
Since taking over as FHFA’s director in March, appointed by President Trump, Pulte has been steering the agency toward a more crypto-friendly policy. FHFA manages over $8.5 trillion in mortgage funds.
Source: https://tintucbitcoin.com/fhfa-yeu-cau-nghien-cuu-tien-dien-tu/
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