FHFA Tells Fannie & Freddie: Add Bitcoin to the Mortgage Toolkit

  • If regulators greenlight the proposals, the 90-year-old US mortgage machine will hinge, in part, on the price swings of digital money—an experiment that could redraw the fault lines between Main Street lending and Wall Street risk.

In an unprecedented policy shift, the Federal Housing Finance Agency on Wednesday ordered government-sponsored enterprises Fannie Mae and Freddie Mac to draw up plans for treating regulated cryptocurrency holdings as eligible reserves in single-family mortgage underwriting.

The decision, signed by FHFA Director William Pulte, instructs the enterprises “to consider cryptocurrency as an asset for reserves… without conversion to US dollars,” provided the coins are “evidenced and stored on a US-regulated centralized exchange” and subject to haircuts for volatility.

The order must clear each government sponsored enterprise’s board and then return to the FHFA for final approval.

Pulte amplified the directive on X, saying he had “ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage,” framing the move as part of President Donald Trump’s bid to make the United States “the crypto capital of the world.”  

The two GSEs currently back about half of America’s $13 trillion residential mortgage market, so admitting crypto-denominated reserves could meaningfully expand borrower eligibility even as it exposes the housing system to sharply different risk dynamics. 

Bitcoin’s 30-day historical volatility frequently runs four to five times that of the S&P 500, with spikes above 70% annualized during stress periods. The directive tackles these risk factors by demanding “additional risk-based adjustments” to any crypto component of borrower reserves.

The mandate also lands amid a fast-tracked push to end Fannie and Freddie’s 17-year conservatorship, raising partisan questions over whether pairing privatization with digital-asset adoption steadies or destabilizes an already fragile housing market.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Second Bitcoin ETF To Hit Market This Morning Via Evolve ETFs

A day after the launch of the first bitcoin ETF, the Purpose Bitcoin ETF (TSX:...

Friday, February 19, 2021, 08:22:35 AM

What Pushes The SEC For A Possible Bitcoin ETF? – The Daily Dive

On this Daily Dive episode, Cassandra chats with one of our regular guests Mike McGlone,...

Monday, October 18, 2021, 01:30:00 PM

Binance Resumes Bitcoin Withdrawals, Adjusts Fees To Prevent Future Congestion

Binance has resumed bitcoin withdrawals following a second pause, as the Bitcoin network experiences extraordinary...

Monday, May 8, 2023, 08:04:15 AM

When Will Spot Bitcoin ETF Finally Take Its Spot?

The price of Bitcoin has experienced a notable surge in 2023, with investors eagerly anticipating...

Saturday, December 30, 2023, 09:55:02 AM

First US Bitcoin ETF to Make NYSE Debut on Tuesday

The price of bitcoin was sent higher on Monday, after the SEC officially greenlighted the...

Monday, October 18, 2021, 04:58:00 PM