Homebuyers in the United States might soon be able to use crypto assets to strengthen their mortgage applications. Photo by Drew Angerer/Getty Images The new overseer of Fannie Mae and Freddie Mac just made a huge announcement. The companies intend to begin counting cryptocurrency as an asset, bolstering President Donald Trump’s administration plan for the U.S. to become a leader in cryptocurrency. This move represents an historic sea change in the lending policies of these two government-sponsored enterprises (GSEs). In fact, we are now 17 years into their federal conservatorship.
Fannie Mae and Freddie Mac are critical institutions—the backbone, really—of America’s housing finance system. They provide an important countercyclical source of liquidity to the mortgage market. This invaluable support helps lenders provide loans and helps low- and moderate-income homebuyers obtain mortgage financing. Both entities had previously issued guidance stating that income paid in cryptocurrency could not be used to qualify for a mortgage, citing “the high level of uncertainty associated with cryptocurrency.”
Thanks to a new directive from homebuilding legend Pulte, Fannie Mae and Freddie Mac are set to reverse this position.
“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.” – Bill Pulte
Despite this positive turn for potential homebuyers, some experts express concern over the implications of taking Fannie Mae and Freddie Mac public. They caution that this decision will increase homebuyers’ borrowing costs. It would likely lead to a negative outcome where people have less access to affordable financing.
The Trump administration’s sudden interest in cryptocurrency—President Trump famously tweeted in 2019 that he was “not a fan of Bitcoin”—is striking. He has previously engaged in the promotion of digital assets himself, launching his own branded token. At the same time, the Trump family has money tied up in a crypto project called World Liberty Financial.
Housing prices are through the roof, with national home sales at an all-time peak in May. Because of this, a lot of folks are wondering how to approach this difficult market. Pulte has acknowledged that while integrating cryptocurrency into mortgage qualifications represents progress, lenders will need to “consider additional risk mitigants per their own assessment, including adjustments for market volatility.”
Pulte’s portfolio oversees the Federal Housing Finance Agency. No other agency is more perfectly poised to influence the creation and implementation of future policies related to cryptocurrency within the housing space. As these advancements roll out, how they affect homebuyers looking to obtain loans will be watched with great interest by industry participants.