FHFA Directs Fannie Mae Freddie Mac to Include Crypto in Loans

• FHFA mandates Fannie Mae and Freddie Mac to include crypto in mortgage risk assessments.
• Only crypto on U.S.-regulated exchanges qualifies with risk adjustments applied.
• Proposals require board approval before FHFA review and implementation.

The U.S. Federal Housing Finance Agency (FHFA) has issued a directive requiring Fannie Mae and Freddie Mac to incorporate cryptocurrency holdings into their risk assessments for certain home loans. This changes how these government-sponsored enterprises (GSEs) evaluate borrower assets for mortgage approval and risk management.

What Does the New FHFA Directive Mandate?

The official order, Decision No. 2025-360, requires the two mortgage giants to treat cryptocurrency as a valid asset for diversifying a borrower’s wealth. Until now, cryptocurrencies have been excluded from mortgage risk assessments because borrowers typically do not convert their digital assets into U.S. dollars before closing loans.

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This directive mandates that Fannie Mae and Freddie Mac, referred to collectively as “the Enterprises,” prepare proposals to consider cryptocurrency as part of borrower reserves in their single-family mortgage loan risk assessments. Additionally, the directive specifies that the Enterprises should count cryptocurrency holdings directly without requiring conversion into U.S. dollars.

Conditions for Using Crypto

The FHFA sets clear guidelines for which cryptocurrencies qualify for consideration. Only assets evidenced on U.S.-regulated centralized exchanges that comply fully with applicable laws will be eligible. Moreover, the Enterprises must incorporate risk mitigants into their assessments. These include adjustments for the known volatility of cryptocurrency markets and appropriate risk-based reductions based on the portion of borrower reserves held in cryptocurrency.

Before any changes are implemented, the Enterprises must submit their proposals to their respective Boards of Directors for approval. Following board approval, the proposals must be forwarded to the FHFA for review and final authorization.

Why Is This a Significant Shift for the Housing Market?

Fannie Mae and Freddie Mac hold big roles in the U.S. housing finance system, ensuring liquidity and stability in the secondary mortgage market. This order seeks to broaden the assessment of borrower assets to support sustainable homeownership by incorporating alternative assets such as cryptocurrency.

Related: Here Are the 3 Biggest Trends Driving Crypto’s Next Chapter

The FHFA’s decision aligns with the broader federal approach to recognizing cryptocurrencies in financial processes. The directive’s issuance cites a commitment consistent with efforts to position the United States as a leading jurisdiction for cryptocurrency development.