The U.S. Federal Housing Finance Agency (FHFA) is exploring the possibility of factoring cryptocurrency holdings such as Bitcoin into mortgage eligibility assessments. This would mark a significant shift by recognizing digital assets in traditional financial frameworks.
Cryptocurrency as a Fourth ‘C’?
FHFA Director Bill Pulte recently revealed plans on X (formerly Twitter) to study how crypto holdings could influence mortgage qualifications. While exact mechanisms remain unclear, the move hints at including crypto alongside the classic “three C’s” of underwriting: Credit, Capacity, and Collateral.
Currently, entities like Fannie Mae and Freddie Mac require crypto to be converted to fiat and deposited in regulated institutions. If crypto is formally added as a fourth ‘C’, it could simplify the process for those with significant digital wealth, potentially eliminating the need to convert assets into cash.
Industry Voices Join the Conversation
The crypto and fintech community responded with interest. Michael Saylor of Strategy unveiled a Bitcoin credit model that factors in variables such as price volatility, loan term, and projected returns to calculate credit risk. Meanwhile, Coinbase CLO Paul Grewal chimed in with a dry-humored take: “Crypto as mortgage security. Probably nothing.”
This evolving discussion suggests digital assets may soon have a more secure footing in the U.S. housing market.
