Cryptocurrencies to Be Counted as Assets in U.S. Home Loan Risk Assessments

According to Cointelegraph, the government-sponsored enterprises Fannie Mae and Freddie Mac are set to include cryptocurrencies in their risk assessments for single-family home loans. This move signifies a notable shift towards the mainstream acceptance of digital assets under U.S. President Donald Trump's administration. The directive was announced by William J. Pulte, the director of the Federal Housing Finance Agency (FHFA), which oversees both Fannie Mae and Freddie Mac. The FHFA has been regulating these enterprises since 2008, following their placement under government conservatorship after the financial crisis. Pulte stated that the decision to incorporate cryptocurrencies into mortgage risk assessments was made "after significant studying" and aligns with President Trump's objective to position the United States as a global leader in cryptocurrency. This development allows cryptocurrencies to be recognized as reserve assets for loan borrowers without the need to convert them into U.S. dollars, a requirement that was previously in place. Fannie Mae and Freddie Mac have been pivotal in the U.S. housing market since the subprime mortgage crisis, providing liquidity and stability by purchasing mortgages from lenders. This enables lenders to issue more loans, thereby supporting the housing market. The inclusion of cryptocurrencies in risk assessments is expected to further enhance their role in the market. As this is a developing story, additional information will be provided as it becomes available.