FHFA Plans to Investigate Cryptocurrency Asset Utilization for Mortgage Eligibility Standards in the United States
Taking crypto mainstream: FHFA ponders making digital assets part of mortgage eligibility
The U.S. Federal Housing Finance Agency (FHFA) is on the verge of revolutionizing the way financial institutions assess borrower's creditworthiness. FHFA Director, William Pulte, announced on X that the agency will investigate whether cryptocurrencies like Bitcoin and stablecoins could be included in the asset base for determining mortgage eligibility.
In a tweet, Pulte confirmed, "We're pouring over the usage of crypto holdings as it relates to qualifying for mortgages."
This potential shift could have significant implications, especially if cryptocurrency becomes an integral part of the mortgage underwriting process. The FHFA governs government-sponsored entities such as Fannie Mae and Freddie Mac, key players in the U.S. mortgage market.
Previously, banks faced limitations in offering crypto-backed loans due to the U.S. Securities and Exchange Commission (SEC) guidance, known as SAB 121. However, this rule was rescinded in January 2025, paving the way for expanded crypto integration into financial services, including mortgage lending.
Crypto-backed mortgages are already available through niche financial companies, but they cater primarily to high-net-worth individuals and tech-savvy investors. These offerings usually involve securing loans in fiat currency while pledging digital assets as collateral, subject to stringent requirements and the risk of margin calls if asset values decline.
If the FHFA steers ahead with a plan to include digital currencies in mortgage assessments, these services may become more accessible and could be offered by traditional banking institutions.
The potential inclusion of crypto holdings in mortgage evaluations could have far-reaching consequences for both borrowers and lenders. A report released in late 2024 highlighted an emerging trend of low-income households using profits from cryptocurrency investments to settle mortgage debts. The same report noted an increase in borrowing in areas with high digital currency adoption, suggesting that digital assets are being adopted as a financial tool across various socioeconomic groups.
The FHFA has not yet decided on a timeline for implementing changes or specified eligible cryptocurrencies. However, the agency's openness to exploring such a notion signifies a growing acceptance of digital assets in regulatory circles. Future discussions are expected to focus on risk assessment, asset volatility, and standardized guidelines for valuation. Whether this leads to the emergence of crypto-integrated mortgage products from major U.S. banks remains to be seen, but the dialogue suggests an evolving view of what constitutes viable wealth in modern finance.
[1] Fed Turns Attention to Home Buyers used to Making Money in Memes[2] FHFA to Consider Crypto as Eligible Asset for Mortgage Underwriting[3] FHFA Takes the Plunge towards Crypto-Mortgages: A Regulatory Analysis[4] Cryptocurrency: FHFA Exploring its Inclusion in Mortgage Evaluations[5] The Road to Crypto-Mortgages: FHFA Issues Directive for Study on Mortgage Eligibility and Crypto Holdings
- The potential inclusion of cryptocurrencies in mortgage evaluations could open up opportunities for ordinary finance-savvy individuals to invest in cryptocurrency and use it as a means to secure mortgages.
- With the FHFA considering cryptocurrencies as eligible assets for mortgage underwriting, there may be a surge in investing in digital assets as a method to build wealth and qualify for traditional mortgage loans.
