Fannie Mae Moves Toward Counting Crypto as Mortgage Reserves

FHFA Director Bill Pulte has directed Fannie Mae and Freddie Mac to draft proposals that would allow borrowers' cryptocurrency holdings to be counted as mortgage reserves without first converting them into U.S. dollars. The instruction would represent a significant shift from current underwriting practices, which typically require applicants to liquidate crypto assets before they can be recognized in loan decisions. Because Fannie Mae and Freddie Mac back more than half of U.S. mortgages, any change could ripple across underwriting standards for a large share of the housing market. According to the Wall Street Journal, eligibility would be limited to crypto held on U.S.-regulated exchanges such as Coinbase. Lenders would also be expected to apply discounted or otherwise adjusted valuations to reflect price volatility, a central concern for regulators and lawmakers. Supporters say the move could expand access to homeownership for borrowers who are asset-rich but cash-poor, letting them rely on holdings such as Bitcoin and Ethereum without triggering taxable sales. Private lenders have already begun offering similar options. Newrez and Rate have introduced nonagency mortgage products that accept crypto for qualification, including Bitcoin and Ethereum, as well as SEC-approved spot ETFs and stablecoins. The policy is likely to face political scrutiny. Democratic lawmakers have warned that volatile digital assets could introduce new risks to the broader housing finance system. Senator Cynthia Lummis has introduced the 21st Century Mortgage Act to codify the FHFA directive into law. The push also aligns with wider political goals, including President Donald Trump' stated aim of positioning the U.S. as a global crypto hub. With the crypto market valued at roughly $2.4 trillion and adoption rising among younger investors, incorporating digital assets into mortgage underwriting may increasingly look like a matter of timing rather than possibility.