Five US Senate Democrats reviewed the country’s financial agency headed housing agency in his plan to consider how crypto would be counted in the approval process for certain mortgages.
Senators, led by Jeff Merkley, have sent Letter Federal Housing Finance Agency (FHFA) director William Pulte on Friday asked him to explain his plan to “fully evaluate the potential risks and benefits of your order and its implications for the US housing market and financial system.”
Senators Elizabeth Warren, Chris Van Hollen, Mazie Hirono and Bernie Sanders also signed the letter, asking Pulte to respond on August 7.
Last month, Pulte ordered mortgage consumers at home Fannie Mae and Freddie Mac at Prepare a proposal In how they can consider crypto handling their risk assessments for family mortgage loans, without converting crypto to the US dollar.
The FHFA has administered Fannie Mae, or the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation, since 2008.
Concerns are raised in crypto risks for home buyers
Senators said Pulte’s plan would “be able to introduce unnecessary risks to consumers and to cause serious safety and well -being for housing and financial markets.”
Under the current policy, they said that Fannie Mae, Freddie Mac, or any other provide for federal-supported mortgages did not allow lenders to consider crypto in mortgage decisions unless it was first converted to the US dollar.
Senators added that the crypto has a history that has seen high volatility and Liquidity crunches.
“Crypto is also subject to higher risks of loss due to scams, cyber hacks, or physical robbery, which can be left by home -owned people with a weak crypto assets with little hope to recover,” senators said.
Democrats said that the adoption can be conflicted with interest
Senators added that they are also concerned about how FHFA, Fannie Mae and Freddie Mac can avoid conflicts of interest for crypto -related “who could influence their proposals,” including President Donald Trump and his family.
Trumpets are deeply involved in the crypto industry, related to a trading platform with a token, a stablecoin, a crypto mining business and various memecoins and invisible tokens.
Senators also aim for Pulte, saying that financial disclosures show her husband holding $ 2 million in crypto, which has “raised additional concerns about your potential conflicts.”
They added that there was “a serious conflict” because Pulte’s order said Fannie Mae and Freddie Mac should get approved from their their boards before moving forward with changes, but Pulte was the leader of the board of each organization, who also accused him of the “Industrial Industry” affiliates.
Senators want more clarity in the adverb -following
Senators also claimed that Pulte’s order was unclear and did not include information about how Fannie Mae and Freddie Mac would develop the FHFA’s assessment of risks and benefits, or how the comment agency would gather.
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“The clarity in this sequence is increasingly critical due to earlier FHFA failures to adequately handle crypto-related activity,” they added, noting the 2023 banking crisis, in which three banks collapsed “in part due to the operation of risks caused by growing cryptocurrency-based businesses.”
The group also mentioned that Fannie Mae Found In 2021 the use of crypto and stablecoins for deposits, payments, or collateral was the “least appealing application” of the blockchain in the industry.
They asked Pulte to respond to a series of questions, including sharing crypto communications, the process for approaching the adversary and how he would return from the conflicts of interest, among others.
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