FHFA Instructs Fannie, Freddie To Count Crypto Assets - (Think Lots of Foreclosures)

[Ken M.]

What's Worse Than Paper Dollars Worth Nothing, think Digits In Cyberspace That Can Disappear!

So, if they accept crypto and you miss a few payments, it won't be Loan Mods they are doing, it'll be foreclosures. If crypto goes up, the bank wins to foreclose. 

Hmmm, I'll be watching the crypto markets and as they go up, more foreclosures will be called.

As Mr. Banks says in Mary Poppins, there is money to be made, "Think of all the of the foreclosures"

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As he had hinted on several previous occasions, FHFA Chair Bill Pulte said he had ordered Fannie Mae and Freddie Mac to prepare a proposal to include cryptocurrencies as assets in the risk assessment of single-family mortgage loans.

The order directs Fannie and Freddie to "only consider cryptocurrency assets that can be evidenced and stored on a US-regulated centralized exchange."

While some boutique lenders already allow borrowers to use their crypto as collateral, study and acknowledgement from the FHFA would represent a major step forward for crypto adoption, particularly amid flagging mortgage application numbers.

According to CoinTelegraph, acknowledging crypto officially at the FHFA could open up sizeable federal lending programs for more borrowers. In 2024, the FHA alone issued over 760,000 single-family mortgages worth $230 billion.

Until Jan. 23, 2025, most banks couldn’t offer crypto-backed loans or mortgages due to Staff Accounting Bulletin No. 121, a banking rule from the Securities and Exchange Commission that required financial institutions to count cryptocurrencies as a liability rather than an asset on their balance sheet.