Crypto Enters the Mortgage Market: FHFA Orders Fannie and Freddie to Factor Digital Assets

In a groundbreaking move for the U.S. housing finance system, the Federal Housing Finance Agency (FHFA) has issued a directive requiring Fannie Mae and Freddie Mac to include cryptocurrency in single-family mortgage loan risk assessments.

The directive, signed Wednesday by FHFA Director William J. Pulte, marks a significant step toward integrating digital assets into the core of traditional American home lending. For the first time, crypto holdings can be factored into mortgage underwriting — without requiring borrowers to convert them to U.S. dollars before closing.

Pulte announced the decision on X, stating that the move aligns with former President Donald Trump’s vision “to make the United States the crypto capital of the world.”

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Previously, digital assets were excluded from underwriting criteria due to concerns over volatility, regulatory ambiguity, and the challenges in verifying crypto holdings. This new directive seeks to change that.

It arrives amid a growing wave of institutional adoption of cryptocurrency across the financial sector, including in banking, payments, and federal policy initiatives. The order notes: “Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets.”

The FHFA’s directive limits recognition to digital assets held on centralized, U.S.-regulated exchanges and that can be verifiably documented. It also requires both GSEs to develop mechanisms for adjusting risk assessments in light of crypto’s price volatility and to ensure that crypto-based reserves don’t weaken overall underwriting standards.

Fannie Mae and Freddie Mac must present their respective proposals to their boards of directors, followed by submission to the FHFA for final review and approval.

The two entities, classified as government-sponsored enterprises (GSEs), have been under federal conservatorship since September 2008.