Crypto Assets and Mortgages: Fannie Mae and Freddie Mac to Recognize Cryptocurrency Holdings
FHFA instructs Fannie Mae and Freddie Mac to create frameworks that allow lenders to consider digital assets alongside traditional assets when assessing mortgage risk.
Web3 Wavefronts - Digestible News on Crypto, DeFi and AI · theWeb3.news
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Show Notes
The Trump administration directed the FHFA to have Fannie Mae and Freddie Mac develop frameworks for including crypto assets in mortgage underwriting. The FHFA has instructed Fannie Mae and Freddie Mac to create standards for handling digital assets within their single-family credit models, defining how reserves are verified, liquidity is assessed, and value is discounted. Lenders would then use established risk assessment principles applied to other assets, focusing on documented ownership, stability of value, and ease of liquidation. Lawmakers are engaging with the FHFA director to discuss scope, consumer protection, and oversight. Fannie Mae and Freddie Mac will translate this policy into procedures, defining eligible digital assets, custody standards, reserve documentation, valuation sources, haircuts, and concentration limits, possibly beginning with limited-scope pilots and updated guidance.
Source: https://theweb3.news/policy/crypto-backed-mortgages-trump/
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