FHFA to Explore Crypto for Mortgage Eligibility
The Federal Housing Finance Agency (FHFA) is studying the inclusion of cryptocurrency holdings in mortgage qualification assessments. FHFA Director William Pulte announced this initiative, which could allow assets like Bitcoin and stablecoins to be considered in traditional finance. Previously, major banks faced limitations on crypto-backed loans due to SEC guidance requiring crypto assets to be disclosed as liabilities. This guidance was rescinded on January 23, enabling potential integration of cryptocurrencies into mortgage lending. Currently, specialized companies offer crypto-backed mortgages, allowing customers to borrow fiat against digital assets as collateral. If the FHFA's study leads to new regulations, traditional banks may also offer these products. A report indicates that lower-income households are increasingly using cryptocurrency gains to pay off mortgages, with high-net-worth individuals utilizing crypto-backed loans for real estate purchases without selling their assets.
