US regulator orders Fannie Mae and Freddie Mac to consider crypto in mortgage applications
The US Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to draw up proposals to consider cryptocurrency as an asset in mortgage risk assessments.
The independent government agency acts as regulator and conservator for the two government-sponsored enterprises, which play a significant role in the US mortgage market. Its order could, in effect, ease the route for aspirant home-owners who own cryptocurrency to get a mortgage and serves as the latest example of US government agencies looking to treat cryptocurrencies as a mainstream financial asset as president Donald Trump pushes pro-crypto policies from the White House.
“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage,” the Washington DC-headquartered agency’s director William J Pulte wrote in an order signed on 25 June.
The order – which should be implemented “as soon as is reasonable practicable” – sees Fannie Mae and Freddie Mac required to prepare proposals for “consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage-loan risk assessments, without conversion of said cryptocurrency to US dollars”.
The assets must be “evidenced and stored on a US-regulated centralised [crypto] exchange” and the agencies “must consider additional risk mitigants per their own assessment, including adjustments for market volatility and ensuring sufficient risk-based adjustments to the share of reserves comprised of cryptocurrency”.
Read more: Trump unveils plan to create ‘Strategic Bitcoin Reserve’ with forfeited crypto
Aiming to help ‘creditworthy borrowers’
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) have been under government control since the 2008 financial crisis. Loan guarantees from Fannie Mae and Freddie Mac reduce risk for lenders.
“Cryptocurrency has not typically been considered in the mortgage risk assessment process for mortgage loans delivered to the Enterprises [Fannie Mae and Freddie Mac], without converting the cryptocurrency to US dollars prior to loan closing,” the FHFA order (officially ‘Decision No. 2025-360’) states.
The order describes cryptocurrency – of which the best-known global example is bitcoin – as an “emerging asset class that may offer an opportunity to build wealth outside stock and bond markets”. It does not name specific cryptocurrencies.
“FHFA has now determined that the consideration of additional borrower assets in the Enterprises’ [Fannie Mae and Freddie Mac] single-family mortgage loan risk assessments may enable the Enterprises to assess the full spectrum of asset information available for reserves and to facilitate sustainable homeownership to creditworthy borrowers.”
Before implementing any changes, Fannie Mae and Freddie Mac must receive board approval “prior to submitting to FHFA for review”.
Trump’s second term as president has led to a growing number of pro-crypto announcements from Washington DC, as well as US states and city leaders. Developments at a federal level include Trump’s appointment of David Sacks as White House artificial intelligence (AI) and crypto ‘czar’; a White House executive order to ‘establish regulatory clarity for digital financial technology’; a new presidential working group on digital asset markets (chaired by Sacks); an executive order to create a ‘Strategic Bitcoin Reserve’ and ‘Digital Asset Stockpile’; and the Department of Justice’s disbandment of its crypto crimes team.
This article was first published on GGF’s sister title Global Government Fintech: US regulator orders Fannie Mae and Freddie Mac to consider crypto in mortgage applics
About Ian Hall
Ian is editor of Global Government Fintech a sister publication to Global Government Forum. Ian also writes for media including City AM and #DisruptionBanking. He is former UK director for the pan-European media network Euractiv (2011-2018), editor of Public Affairs News (2007-2011) and news editor of PR Week (2000-2007). He was shortlisted for ‘Editor of the Year’ at the British Society of Magazine Editors (BSME) Awards in 2010. He began his career in Bulgaria at English-language weekly the Sofia Echo. Ian has an MA in Urban and Regional Change in Europe and a BA in Economics, both from Durham University.
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