FHFA Directs Fannie, Freddie to Explore Crypto Mortgages

While this FHFA directive does not allow crypto to qualify for mortgage payments, it mandates the government-sponsored enterprises to treat crypto similarly to stocks or bonds for reserve purposes. LendFriend Mortgage already offers crypto-backed mortgages, enabling borrowers to use Bitcoin or Ethereum as collateral or for asset qualification without triggering a tax event.

The newly signed Genius Act officially recognizes crypto in the U.S. financial system, making digital asset homeownership more practical. This institutional recognition is expected to standardize underwriting, increase liquidity, and potentially lower rates for crypto-backed loans, encouraging more investors into the asset class.

Despite current higher interest rates, typically 0.5-1% more than conventional mortgages, and volatility risks, the market anticipates more fintech innovation and mainstream lender participation from entities like Chase or Wells Fargo by 2027.