US Housing Head Directs Fannie Mae and Freddie Mac to Gear Up for Crypto Evaluation in Mortgages

The U.S. Housing Authority Chief has instructed Fannie Mae and Freddie Mac, the government-sponsored mortgage giants, to begin preparing for the assessment of digital assets, such as cryptocurrencies, in mortgage transactions. This development signifies a significant stride towards integrating cryptocurrencies into the conventional housing finance system. The institutions are expected to develop frameworks to evaluate the risks and rewards of using cryptocurrencies as part of the mortgage underwriting process. This includes examining the volatility of cryptocurrency values and their potential impact on borrowers’ ability to repay their loans. The intention behind this measure is to ensure the protection of both consumers and lenders in the increasingly evolving crypto landscape. Deliberate consideration will be given to how these digital assets will be handled within the framework of existing regulations, focusing on transparency and accountability for all parties involved.