Latest news with #WilliamPulte
Straits Times
7 hours ago
- Business
- Straits Times
Trump administration moves to count crypto in federal housing loan assessments
US regulator has ordered federal housing giants to consider cryptocurrency as an asset for single-family mortgage loan risk assessments. PHOTO: REUTERS NEW YORK - The US regulator overseeing Fannie Mae and Freddie Mac on June 25 ordered the federal housing giants to consider cryptocurrency as an asset for single-family mortgage loan risk assessments, a move that could potentially open the door to borrowers using crypto investments to qualify for home loans. William Pulte, the director of the Federal Housing Finance Agency (FHFA), said in a social media post that he had ordered Fannie and Freddie to 'prepare their businesses to count cryptocurrency as an asset for mortgage,' which he said would be in line with President Donald Trump's vision of making the United States 'the crypto capital of the world.' The FHFA oversees Fannie Mae and Freddie Mac, which have operated under US government control since 2008 after suffering heavy losses during the subprime mortgage crisis. They guarantee over half of the nation's mortgages. Cryptocurrencies are known for being highly volatile and are often subject to wild price swings, sometimes for no clear reason. In February, Bitcoin – the largest cryptocurrency – suffered its biggest weekly fall in two years, dropping 16 per cent, although it has since recovered. Mr Trump has sought to overhaul US cryptocurrency policy after courting cash from the industry on the campaign trail. He has appointed industry-friendly regulators and has hosted industry leaders at the White House. Cryptocurrencies have reacted favourably, with Bitcoin reaching all-time highs this year. In a directive signed on June 25, Mr Pulte said that considering additional borrower assets – such as cryptocurrencies – could enable Fannie and Freddie to assess the full financial picture of a borrower and could 'facilitate sustainable homeownership to creditworthy borrowers.' Mr Pulte's order did not specify which cryptocurrencies Fannie and Freddie should consider. Only digital assets held on US-regulated, centralised exchanges will qualify under the new guidance. Fannie and Freddie must design safeguards to account for crypto's volatility and submit their plans to the FHFA. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
8 hours ago
- Business
Fannie Mae, Freddie Mac ordered to consider crypto as an asset when buying mortgages
The head of the federal government agency that oversees Fannie Mae and Freddie Mac wants the mortgage giants to consider accepting a homebuyer's cryptocurrency holdings in their criteria for buying mortgages from banks. William Pulte, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie, ordered the agencies Wednesday to prepare a proposal for consideration of crypto as an asset for reserves when they assess risks in single-family home loans. Pulte also instructed the agencies that their mortgage risk assessments should not require cryptocurrency assets to be converted to U.S. dollars. And only crypto assets that 'can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws' are to be considered by the agencies in their proposal, Pulte wrote in a written order, effective immediately. Pulte was sworn in as the head of FHFA in March. Public records show that as of January 2025, Pulte's spouse owned between $500,000 and $1 million of bitcoin and a similar amount of Solana's SOL token. Banks seeking to make mortgages that qualify for purchase by Fannie and Freddie have not typically considered a borrower's crypto holdings until they were sold, or converted, to dollars. The policy is meant to encourage banks to expand how they gauge borrowers' creditworthiness, in hopes that more aspiring homebuyers can qualify for a home loan. It also recognizes that cryptocurrencies have grown in popularity as an alternative to traditional investments, such as bonds and stocks. The agencies have to come up with their proposals 'as soon as reasonably practical,' according to the order. Fannie and Freddie, which have been under government control since the Great Recession, buy mortgages that meet their risk criteria from banks, which helps provide liquidity for the housing market. The two firms guarantee roughly half of the $12 trillion U.S. home loan market and are a bedrock of the U.S. economy.
Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
FHFA's Pulte Orders Fannie, Freddie to Consider Crypto as Mortgage Asset
Federal Housing Finance Agency Director William Pulte told Fannie Mae FNMA 0.50%increase; green up pointing triangle and Freddie Mac FMCC 0.73%increase; green up pointing triangle to prepare their businesses for counting cryptocurrency as an asset on mortgage applications. Pulte said in a social media post Wednesday the move was 'in keeping with President Trump's vision to make the United States the crypto capital of the world.' In his order, he said crypto is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets.
The Hill
10 hours ago
- Business
- The Hill
Fannie Mae, Freddie Mac ordered to consider crypto as an asset when buying mortgages
The head of the federal government agency that oversees Fannie Mae and Freddie Mac wants the mortgage giants to consider accepting a homebuyer's cryptocurrency holdings in their criteria for buying mortgages from banks. William Pulte, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie, ordered the agencies Wednesday to prepare a proposal for consideration of crypto as an asset for reserves when they assess risks in single-family home loans. Pulte also instructed the agencies that their mortgage risk assessments should not require cryptocurrency assets to be converted to U.S. dollars. And only crypto assets that 'can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws' are to be considered by the agencies in their proposal, Pulte wrote in a written order, effective immediately. Pulte was sworn in as the head of FHFA in March. Public records show that as of January 2025, Pulte's spouse owned between $500,000 and $1 million of bitcoin and a similar amount of Solana's SOL token. Banks seeking to make mortgages that qualify for purchase by Fannie and Freddie have not typically considered a borrower's crypto holdings until they were sold, or converted, to dollars. The policy is meant to encourage banks to expand how they gauge borrowers' creditworthiness, in hopes that more aspiring homebuyers can qualify for a home loan. It also recognizes that cryptocurrencies have grown in popularity as an alternative to traditional investments, such as bonds and stocks. The agencies have to come up with their proposals 'as soon as reasonably practical,' according to the order. Fannie and Freddie, which have been under government control since the Great Recession, buy mortgages that meet their risk criteria from banks, which helps provide liquidity for the housing market. The two firms guarantee roughly half of the $12 trillion U.S. home loan market and are a bedrock of the U.S. economy.
CTV News
10 hours ago
- Business
- CTV News
Fannie Mae, Freddie Mac ordered to consider crypto as an asset when buying mortgages
The head of the U.S. federal government agency that oversees Fannie Mae and Freddie Mac wants the mortgage giants to consider accepting a homebuyer's cryptocurrency holdings in their criteria for buying mortgages from banks. William Pulte, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie, ordered the agencies Wednesday to prepare a proposal for consideration of crypto as an asset for reserves when they assess risks in single-family home loans. Pulte also instructed the agencies that their mortgage risk assessments should not require cryptocurrency assets to be converted to U.S. dollars. And only crypto assets that 'can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws' are to be considered by the agencies in their proposal, Pulte wrote in a written order, effective immediately. Pulte was sworn in as the head of FHFA in March. Public records show that as of January 2025, Pulte's spouse owned between US$500,000 and US$1 million of bitcoin and a similar amount of Solana's SOL token. Banks seeking to make mortgages that qualify for purchase by Fannie and Freddie have not typically considered a borrower's crypto holdings until they were sold, or converted, to dollars. The policy is meant to encourage banks to expand how they gauge borrowers' creditworthiness, in hopes that more aspiring homebuyers can qualify for a home loan. It also recognizes that cryptocurrencies have grown in popularity as an alternative to traditional investments, such as bonds and stocks. The agencies have to come up with their proposals 'as soon as reasonably practical,' according to the order. Fannie and Freddie, which have been under government control since the Great Recession, buy mortgages that meet their risk criteria from banks, which helps provide liquidity for the housing market. The two firms guarantee roughly half of the US$12 trillion U.S. home loan market and are a bedrock of the U.S. economy. --- Alex Veiga, The Associated Press
