FHFA Orders Fannie Mae and Freddie Mac to Review Crypto in Mortgage Risk

Highlights:

• FHFA has ordered the two mortgage companies to treat crypto assets as reserves in loan risk evaluations.
• Only crypto held on US-regulated exchanges will qualify as part of borrower reserves in housing loan applications.
• New risk systems will track crypto price changes to protect mortgage lending from sharp market fluctuations.

William Pulte, the director of the U.S. Federal Housing Finance Agency (FHFA), has directed Fannie Mae and Freddie Mac, two government-backed, privately held mortgage companies originally created by the U.S. Congress, to evaluate cryptocurrency holdings in mortgage loan risk assessments. The order, dated June 25, requires both institutions to treat digital assets as part of a borrower’s reserves. However, only cryptocurrencies stored on centralized exchanges regulated in the United States will be eligible for consideration.

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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.

SO ORDERED pic.twitter.com/Tg9ReJQXC3

— Pulte (@pulte) June 25, 2025

Pulte stated that the assets should be considered without needing to convert them into U.S. dollars. This change applies specifically to single-family mortgage loans and aims to expand how borrower financial strength is measured. The FHFA expects this move to reflect current trends, as many Americans now hold significant value in digital currencies.

According to Pulte, the order aligns with former President Donald Trump’s plan to strengthen the United States’ position in digital finance. He said that this directive followed an extensive internal study and review. The shift introduces digital asset evaluation into the core process of mortgage lending.

Crypto in Mortgage Reserves to Be Assessed with Volatility Protections

The FHFA notice directs the two companies to put new systems in place to address the risks presented by the use of crypto when making mortgage evaluations. Fannie Mae and Freddie Mac must now create internal tools to value cryptocurrency reserves while accounting for price volatility. These systems should limit exposure to risk caused by sharp market swings.

As part of the plan, both agencies must measure how much of a borrower’s reserves can safely remain in digital assets. For instance, crypto assets could reduce in value if prices drop significantly. The agencies must verify all holdings through U.S.-regulated platforms before basing valuations.

Pulte explained that the approach offers a more complete financial profile for borrowers while maintaining loan stability. It would be the first instance that these agencies will consider digital assets in mortgage qualifications. In the past, evaluators calculated reserves using only traditional fiat-based assets. FHFA requires both institutions to submit their proposals to their boards of directors for approval. After internal approval, each plan must be reviewed and accepted by the FHFA. The agency has not given any specific timelines that it will use to implementing the plan after approval.

Industry Leaders Respond to Crypto in Mortgage Move

Several voices in the financial and digital asset industries responded to the FHFA’s decision. According to Michael Saylor, the founder of Bitcoin-focused company Strategy, the announcement represented the turning point of digital asset adoption. He mentioned that the mortgage market in the United States tends to dictate the global financial trends.

Congratulations. Future generations will remember this as the moment Bitcoin entered the American dream.

— Michael Saylor (@saylor) June 25, 2025

The change was also welcomed by the real estate blockchain company Propy. The company wrote that this step represents a milestone in crypto integration in real estate. Based on their statement, governmental agencies are now acting due to the explosive increase in ownership of digital assets.

Over the past few months, larger crypto-friendly institutions such as JPMorgan and Coinbase have begun to expand crypto-collateral opportunities. JPMorgan recently allowed certain clients to utilize Bitcoin exchange-traded funds as collateral on loans. Additionally, stablecoin issuer Circle plans to make USDC eligible for futures trading collateral. Some private lenders already offer crypto-backed mortgages using Bitcoin or Ether. The FHFA’s decision signals a shift toward including such models within the formal U.S. housing finance system.

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