In a significant move for the U.S. housing finance system, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to formally consider cryptocurrency as an asset in single-family mortgage loan risk assessments. This directive, signed by FHFA Director William J. Pulte, signals a new era of crypto integration into traditional financial infrastructure. Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that were put under government control in September 2008. These entities play a vital role in the housing market.
The order directs both housing finance giants to develop proposals that include digital assets, without requiring borrowers to liquidate them into U.S. dollars prior to a loan closing. According to a post by Director Pulte on X, this move aligns with a vision to position the United States as a prominent global hub for cryptocurrency innovation. Historically, cryptocurrency has been excluded from underwriting frameworks due to volatility, regulatory uncertainty, and the inability to easily verify reserves. This directive aims to change that.
The decision arrives amid increasing institutional acceptance of crypto across banking, payments, and federal policy. The FHFA acknowledges crypto’s growing role in household financial portfolios, stating that it’s an emerging asset class potentially offering wealth-building opportunities outside traditional markets. The directive restricts consideration to digital assets stored on U.S.-regulated, centralized exchanges where reserves can be clearly evidenced.
Fannie Mae and Freddie Mac must develop internal adjustments to account for crypto’s market volatility. They will have to ensure that any risk-weighted reserves comprised of crypto do not compromise underwriting standards. Under the directive, both enterprises must submit their assessment proposals to their boards of directors for approval, followed by submission to the FHFA for final review.
