FHFA Explores Cryptocurrency for Mortgages
The U.S. Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to assess the potential of including cryptocurrency as an asset in the reserves for single-family mortgage risk assessments. This directive, announced by FHFA Director William Pulte, is part of a broader initiative led by the Trump administration to position the United States as a leader in the cryptocurrency space. Fannie Mae and Freddie Mac serve to ensure liquidity and stability in the mortgage market by purchasing loans from lenders. The move signifies a significant shift in how these agencies might handle mortgage risk by potentially recognizing cryptocurrencies as valuable assets.
FAQ
❓ Why is cryptocurrency being considered for mortgages?
The FHFA aims to modernize mortgage risk assessment and align with U.S. crypto leadership ambitions.
❓ What roles do Fannie Mae and Freddie Mac play?
They provide liquidity and stability in the mortgage market by purchasing loans from lenders.
❓ Who is leading this initiative?
The directive comes from FHFA Director William Pulte under the Trump administration.