The Federal Housing Finance Agency (FHFA) in the U.S. is investigating the potential inclusion of cryptocurrency holdings in mortgage qualification processes. FHFA Director William Pulte announced this initiative, indicating a study on how cryptocurrencies could impact mortgage eligibility. The FHFA regulates government-sponsored enterprises like Fannie Mae and Freddie Mac. If approved, borrowers might be able to use Bitcoin, stablecoins, and other digital assets as qualifying assets, significantly integrating cryptocurrencies into traditional finance. Previously, major banks faced restrictions on offering crypto-backed loans due to SEC guidance that classified crypto assets as liabilities. However, this guidance was rescinded on January 23, 2023, paving the way for new financial products. While specialized companies currently offer crypto-backed mortgages, traditional banks may soon follow suit. A report from late 2024 highlighted that many lower-income households are leveraging cryptocurrency gains to pay off mortgages, with some high-net-worth individuals using crypto-backed loans to acquire real estate without liquidating their assets. Read more AI-generated news on: https://app.chaingpt.org/news

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