FHFA Orders Fannie Mae Freddie Mac to Include Crypto in Mortgage Risk Assessments from June 2025

Fannie Mae and Freddie Mac, under the guidance of the Federal Housing Finance Agency (FHFA), have announced a significant policy change that will include cryptocurrency holdings in mortgage risk assessments starting from June 2025. This shift is a direct response to the FHFA's crypto-friendly stance, which aims to integrate digital assets into traditional financial systems.

FHFA Director William J. Pulte has ordered Fannie Mae and Freddie Mac to adapt their policies to consider cryptocurrency holdings regulated by U.S. exchanges. This marks a departure from traditional asset assessments and reflects the evolving norms in the financial sector. According to Pulte, this move is in line with the vision to make the United States a global leader in cryptocurrency adoption. Cryptocurrencies such as BTC, ETH, and SOL will now be counted as assets for mortgage risk assessments, influencing how borrowers' creditworthiness is evaluated.

The immediate effects of this policy change include a broadened asset pool for borrowers. The recognition of crypto in mortgage risk assessments could encourage wider adoption of digital assets, linking them more closely to traditional financing. This directive may also increase regulatory scrutiny but promises greater market liquidity. Centralized exchange listings become crucial for crypto's relevance in mortgages, and observers are awaiting further tests of this integration's financial impact.

Implementation of this policy could incentivize high-net-worth individuals to move their assets into U.S. exchanges, focusing on compliance. The adoption of cryptocurrency in traditional finance continues to evolve, setting new precedents for asset recognition in major markets. The FHFA's directive to Fannie Mae and Freddie Mac to explore the inclusion of cryptocurrencies as assets in mortgage loan risk assessments signifies a notable shift in how these evaluations are conducted. This move aligns with the broader trend of increasing acceptance of digital assets in mainstream financial sectors.

The FHFA, which has overseen Fannie Mae and Freddie Mac since 2008, aims to enhance the stability and liquidity of the U.S. housing market by incorporating cryptocurrencies into the mortgage assessment process. The directive specifies that only cryptocurrencies stored on U.S.-regulated centralized exchanges and compliant with all applicable laws will be considered. This ensures that the inclusion of digital assets in mortgage assessments is conducted within a regulated framework, mitigating potential risks associated with the volatile nature of cryptocurrencies.

The recognition of cryptocurrencies as collateral in the mortgage process reflects a growing trend of mainstream acceptance of digital assets. This development is part of a broader effort to integrate cryptocurrencies into traditional financial systems, providing new opportunities for borrowers and lenders alike. The move by the FHFA is expected to encourage further innovation in the housing market, as more financial institutions explore the use of digital assets in their operations.

The directive also requires Fannie Mae and Freddie Mac to develop methodologies for valuing cryptocurrencies, applying haircuts, and adjusting for daily price fluctuations. This comprehensive approach ensures that the inclusion of digital assets in mortgage assessments is conducted in a manner that maintains the stability and integrity of the housing market. The FHFA's order is a significant step towards recognizing the potential of cryptocurrencies as a viable asset class in the mortgage industry, paving the way for further integration of digital assets into traditional financial systems.