The Federal Housing Finance Agency (FHFA) has issued a monumental policy change by directing Fannie Mae and Freddie Mac to start accepting cryptocurrencies, including Bitcoin, as an aspect in mortgage assets assessment. It is the first instance that such digital currencies as Bitcoin will be officially accepted as mortgage qualifications in the U.S. amid the then-ongoing housing finance.
As stated by the director of the FHFA, Bill Pulte, the order aims to enhance the status of the United States as a global leader in adopting crypto. According to this new direction, Fannie Mae and Freddie Mac will be required to formulate strategies that permit the authenticated cryptocurrency balances to be allocated to the reserve of a borrower when getting home loans.
It will also eliminate the need for borrowers to exchange their Bitcoin for U.S. dollars so as to satisfy the reserves. But the cryptocurrencies should be kept on the U.S. governed centralized exchanges like coinbase and Kraken. Applicants shall also present verifiable ownership and safekeeping evidence.
The FHFA has pointed out that any crypto assets used in the mortgage must meet U.S. law, including the know your customer policies and the anti-money laundering statutes. Other risks that Fannie Mae and Freddie Mac have to contend with before the agency’s last approval is given include price volatility and liquidity.
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This development marks a turning point in how digital assets are treated in traditional finance. According to Strategy co-founder Michael Saylor, Bitcoin’s acceptance as a reserve asset in the housing sector is a defining moment for its institutional adoption.
Bitwise CEO Hunter Horsley also highlighted the importance of this move, calling Bitcoin “pristine collateral” now eligible in the U.S. mortgage process. The migration of Bitcoin into mortgage lending shows that there is a mainstream change in acknowledging crypto as a mainstream financial system.
With FHFA, Fannie Mae, and Freddie Mac plans moving forward, Bitcoin is set to have a significant impact on mortgage qualification in the future. The shift would enable crypto investors to enjoy new ways into homeownership and boost the presence of digital assets as the backbone of the American economy.
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