Study by the Federal Housing Finance Agency (FHFA) if cryptocurrency handling can be considered in mortgage qualifications.
On a Tuesday x PostUS FHFA director William Pulte – appointed by President Donald Trump – the agency said checking cryptocurrencies. “Let’s study the use (of) holding cryptocurrency because it is associated with qualified for mortgages,” he said.
FHFA sets policies for businesses sponsored by the US government, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. If the agency allows lenders to list Bitcoin (Btc), Stablecoins or other tokens as a well -owned owner, this will include the asset class deeply in traditional finances.
Until January 23, most major banks do not offer The loans supported by crypto or mortgage. This limit is due to the US Securities and Exchange Commission’s (SEC) Guide to Accounting Sat 121.
This leads to complications for banks, as capital requirements are linked to the contents of the sheet balance. On January 23, the SEC officially restored this controversial guide, opening the doors to the new Crypto finance integration.
Related: What are the mortgages supported by crypto, and how do they work?
Mortgages supported by crypto
While Mortgages supported by crypto Already, these are specific products offered by specialized companies. Those companies usually allow customers to borrow Fiat Money to buy real estate or for other purposes, in exchange for locking digital assets as collateral, usually with high collateralization requirements.
In this deposition, if the digital assets selected as collateral fall into value, the customer often needs to add more ownership to avoid destroying a margin call. Through new guidance from FHFA, we can see such offerings also from traditional banks, or even completely new types of crypto lending products.
Related: Real-World tokenization can drive homeownership-quarter homes CEO
Crypto as a way to buy real estate
According to a report released in late November 2024, a growing number of low -income homes is Using those obtained from cryptocurrency investment to repay their debts. Researchers have written that “the increase in borrowing is especially noticeable in low-income households in high crypto exposure areas.”
Mauricio Di Bartolomeo, Bitcoin co-founder supported by loan company Ledn, recently told Cointelegraph that some bitcoin holders are using Crypto -supported loans to buy real estate without selling a single Satoshi. He said they are generally highly value individuals who do not meet the traditional criteria for real estate financing.
Magazine: Home loans using crypto as collateral: are the risks beyond reward?
