#ETHBreaks3700 The US Federal Housing Finance Agency (FHFA) is exploring the inclusion of cryptocurrencies in single-family mortgage risk assessments. This move could allow long-term crypto holders to use their digital assets to qualify for mortgages without having to liquidate them. Here's what's happening¹ ²:
- *Key Points:*
- *FHFA's Directive*: The agency has issued a directive to study how cryptocurrencies can be factored into mortgage risk assessments for single-family homes.
- *Potential Impact*: This could reshape the US housing credit landscape and provide more flexibility for homebuyers with significant digital asset holdings.
- *Expert Opinions*: Some experts advocate for a framework that supports innovation, allowing both self-custodied and custodial holdings with volatility-adjusted valuation models.
- *Implementation:*
- *Timeline*: The FHFA's consideration of crypto assets in mortgage assessments is ongoing, with potential implementation in the future.
- *Guidelines*: The agency may apply valuation discounts (haircuts) to account for crypto volatility and limit crypto's share of total reserves using a risk-based tiered approach.
- *Implications:*
- *Increased Accessibility*: This move could make it easier for crypto holders to use their assets for mortgage applications.
- *Modernizing Housing Finance*: The FHFA's directive has the potential to modernize housing finance and integrate digital assets into traditional financial systems.
Some notable details about the FHFA's consideration of crypto assets include.
- *Bitcoin Focus*: Bitcoin is a primary focus of the policy.
- *Regulatory Guidance*: The announcement follows US regulatory guidance changes.
- *Fannie Mae and Freddie Mac*: The FHFA has directed these entities to recognize cryptocurrency as an asset in their assessments of single-family mortgage loan risks.$BTC
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