The Federal Housing Finance Agency (FHFA) is investigating whether holdings of digital assets such as Bitcoin should be considered in the mortgage application process.
FHFA Director Bill Prute announced the initiative via X on July 24th, noting that agents are beginning a review process to determine how cryptography is used in mortgage valuations.
According to him:
“We will study usage (o)f cryptocurrency holdings as it relates to mortgage eligibility.”
FHFA regulates the US housing finance system. He oversees major institutions such as Fannie Mae, Freddie Mac and the Federal Mortgage Bank.
Traditionally, mortgage underwriters have accepted collateral including applicant savings, retirement accounts and publicly traded securities. However, cryptocurrencies have long been ruled out due to market volatility and lack of clarity in regulations.
This development could significantly change the unwillingness of underwriters as emerging industries could be perceived as a viable financial instrument for housing financing.
In particular, the planned review lies in a broad wave of openness to US code regulations, particularly under the administration of President Donald Trump.
How Crypto rebuilds US mortgage qualifications
Although FHFA has yet to reveal how to evaluate the crypto mortgage process, Michael Saylor’s company Strategy (formerly MicroStrategy) has developed a Bitcoin credit framework that assesses risk using BTC prices, volatility, loan duration, and projected returns.
This model is designed to help institutions assess the strength of borrowers when digital assets are involved.
Industry players welcomed the move, noting that many digital asset holders face hurdles when applying for mortgages.
Tristan Yver, co-founder of Backpack Crypto Exchange, said Crypto holders often need to convert their possessions into Fiat and funds into traditional bank accounts before lenders have approved them.
He said the process has slowed funding and forced many long-term holders to leave the crypto position prematurely.
Anthony Apollo, who heads Wyoming’s stable token committee, looked back on these practices from major financial institutions.
For example, JPMorgan shared that it must be converted into a bank account and seasoned for several months before it was considered in a mortgage assessment.
