U.S. Housing Regulator to Review Cryptos Role in Mortgage Applications: Potential Impact on Mortgage Market and Financial System
The Federal Housing Finance Agency (FHFA) is considering whether crypto holdings should be considered when Americans apply for a mortgage, according to Director Bill Pulte. The review will examine how assets such as bitcoin (BTC) could be incorporated into the income-and-wealth checks used by Fannie Mae, Freddie Mac, and the 11 regional Federal Home Loan Banks to backstop most U.S. mortgages.
Pulte's comments come as the U.S. becomes increasingly crypto-friendly under President Donald Trump's rule. He was sworn in on March 14 after being nominated by Trump. Public filings show that Pulte owns as much as $1 million in both bitcoin and Solana's SOL, alongside stakes in crypto firm MARA Holdings, air conditioning firms, MrBeast Industries, and Elon Musk's X among others.
Currently, Fannie Mae and Freddie Mac require that cryptocurrency holdings be "exchanged into U.S. dollars and held in a U.S. or state-regulated financial institution" to be considered. The review will determine whether this requirement should be changed to allow for the inclusion of crypto assets in mortgage applications.
The increasing openness to crypto in the U.S. could potentially raise risk levels in traditional finance, according to European regulators. It remains to be seen how the FHFA's review will impact the mortgage market and the broader financial system.
