Federal Housing Finance Agency: crypto to be counted as mortgage collateral – Ledger Insights
The Director of the US Federal Housing Finance Agency (FHFA) has ordered that Fannie Mae and Freddie Mac consider the cryptocurrency assets of borrowers for the purposes of collateral on single home mortgage loans. The two government sponsored enterprises buy mortgages from lenders and repackage them in mortgage backed securities that carry a government guarantee.
In the order posted on social media, FHFA Director William J. Pulte said that the enterprises should consider valuation adjustments to account for crypto volatility and other risks, and also take account of the proportion crypto makes of total reserves. Only crypto held at US regulated centralized exchanges will be counted. He expects to receive proposals from the two…
