FHFA Orders Fannie and Freddie to Prepare for Crypto Asset Inclusion in Mortgage Evaluations

In a historic policy shift, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to consider cryptocurrency holdings in single-family mortgage loan risk assessments. The move could allow borrowers to leverage digital assets without converting them to U.S. dollars — marking a significant expansion in the recognition of digital finance within the mortgage sector.

Announced on June 25, 2025, through an official order and social media post, FHFA Director William J. Pulte stated that this policy supports President Donald Trump’s goal of making the United States the “crypto capital of the world.” Only assets held and verified on U.S.-regulated centralized exchanges will qualify, subject to market volatility adjustments and board-level approval.

Policy Mechanics and Risk Framework

Under the directive, Fannie Mae and Freddie Mac — government-sponsored enterprises backing over half of all U.S. home loans — must now incorporate cryptocurrency assets into mortgage underwriting models. Borrowers will be able to count verified crypto holdings stored on compliant platforms toward their loan eligibility, removing the need to liquidate them for fiat. The FHFA has not specified which digital assets will be eligible, leaving implementation details to follow.

Recognizing the volatility of crypto markets — illustrated by Bitcoin’s 16% decline in February 2025 — Director Pulte mandated that risk mitigation measures be embedded into underwriting frameworks. These include volatility-adjusted asset valuation and internal board review. Both agencies are required to submit proposals for implementation to the FHFA and their respective boards of directors.

Implications for Borrowers and the Housing Market

The policy arrives as U.S. home prices remain elevated — FHFA data shows a 3.0% year‑over‑year rise through April 2025, with S&P Case‑Shiller reporting a 2.7% annual gain. Median sale prices recently hit a record $396,500. Although growth has slowed, prices continue to hover near peak levels. Mortgage rates also remain elevated, further squeezing affordability.

By recognizing crypto holdings in credit evaluations, the FHFA aims to expand access to financing for individuals whose wealth is increasingly digital.

Many potential borrowers previously faced structural limitations when applying for loans, often needing to exit crypto positions to meet qualification standards. This policy change removes that friction and could better align the lending system with evolving asset ownership trends.

Institutional Risk and Industry Outlook

While the move represents a notable step forward in digital asset integration, it also raises questions about systemic risk — particularly if Fannie Mae and Freddie Mac are eventually privatized. Analysts will closely watch how the agencies implement controls to manage exposure within the bounds of prudent mortgage lending.

The two GSEs are expected to finalize and submit their implementation frameworks in the coming months. With their significant influence over the U.S. mortgage market, their adoption of crypto-inclusive assessments may shape broader lending norms. More broadly, the policy signals increasing acceptance of digital assets as part of the financial toolkit for credit evaluation and wealth management.