FHFA Directs Fannie Mae Freddie Mac to Consider Cryptocurrency in Mortgages

The Federal Housing Finance Agency (FHFA) has issued a directive to Fannie Mae and Freddie Mac, instructing them to consider cryptocurrency assets in mortgage assessments. This directive, signed by FHFA Director William J. Pulte on June 25, 2025, marks a significant shift in the U.S. housing finance landscape, as it is the first time digital assets will play a formal role in mortgage qualifications.

The FHFA's initiative to evaluate the usability of cryptocurrencies, such as Bitcoin and stablecoins, in federal mortgages is influenced by the growing ownership of digital assets among Americans. This move aims to potentially alter mortgage frameworks and expand property market access for digital asset holders. Industry leaders, including Pulte and Michael Saylor, CEO of Strategy, are backing this evaluation, which could integrate Bitcoin’s value into home loans.

The inclusion of cryptocurrency holdings in mortgage qualifications could alter the traditional underwriting process, which currently relies on the "three C’s" — Credit, Capacity, and Collateral. By including digital assets as a fourth 'C', the agency aims to recognize the growing importance of cryptocurrencies in personal finance. This recognition could benefit applicants with substantial digital assets, allowing them to utilize these assets in the mortgage process without the need for conversion to cash.

The FHFA oversees key components of the U.S. housing market, including Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Currently, these entities require applicants to convert their crypto assets to U.S. dollars and hold them in a federally or state-regulated institution. The potential inclusion of crypto holdings in mortgage underwriting could streamline this process, making it more accessible for individuals with significant digital asset holdings.

The announcement has sparked discussion within the digital asset community, with industry leaders sharing their perspectives on the potential implications. Michael Saylor proposed a Bitcoin credit model that considers factors such as loan duration, collateral coverage, Bitcoin price, volatility, and outlook for Bitcoin’s average annual return rate to generate statistical Bitcoin risk and credit spreads. This model aims to provide a framework for evaluating the use of Bitcoin in mortgage qualifications.

Paul Grewal, Chief Legal Officer of Coinbase, also weighed in on the development, suggesting that the potential for crypto to be used as mortgage security is a significant step forward. His comment underscores the growing acceptance of digital assets in traditional financial systems.

The FHFA's study on the use of crypto holdings in mortgage qualifications represents a notable development in the integration of digital assets into mainstream finance. As the agency continues to explore this possibility, it could pave the way for a more inclusive and innovative approach to mortgage underwriting, benefiting both applicants and the broader housing market. This engagement with cryptocurrencies may result in new analytical frameworks, altering long-standing financial eligibility criteria and potentially inspiring updated financial regulations.