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51 August 2025 J O U R N A L themortgagepoint.com August 2025 » • If accepted, cryptocurrency might be used in loan applications alongside more conventional assets like cash and equities. • The action would signal a significant change in U.S. housing policy with regard to digital assets. • According to its director, the FHFA began reviewing digital asset balanc- es in home loan applications. This might alter the way Freddie Mac and Fannie Mae assess borrower wealth to take bitcoin holdings into account. The idea has generated a lot of atten- tion and discussion among professionals, cryptocurrency fans, and politicians, even though it has the potential to change the home finance market. Michael Saylor, the CEO of Strategy (MicroStrategy), responded to Pulte's X post by offering the company's BTC Credit model as a means of facilitating this change. This well-known methodology calculates Bitcoin's rating, risk, and credit by taking into account factors including volatility, collateral coverage, and loan term. "We have developed a BTC Credit model that we are happy to share. It takes into account Loan Duration, Collateral Coverage, BTC Price, BTC Volatility, and BTC ARR outlook to generate statistical BTC Risk and BTC Credit spreads. Try it now on our web- site," Saylor said in his X post. Another commenter pointed out that under federal lending laws, crypto- currency holdings must already be recognized as valid collateral under the Digital Asset Market Clarity Act of 2025 (H.R. 3633). It does, however, forbid dis- crimination against digital commodities in the underwriting of mortgages. "While innovation is critical, the real risk lies in D.C. bureaucrats layering redundant 'risk assessments' that duplicate existing fraud safeguards," noted the user, adding "the market's adapting faster than regulators—let's streamline, not suffocate progress with more studies." Critics alert the Director to the possibility of a housing bubble similar to the one that occurred in 2008, when the exposure of Fannie Mae and Freddie Mac to subprime loans required a government rescue. The historical comparison encourages caution because there is currently no peer-reviewed re- search to substantiate this anxiety with crypto-backed mortgages. Implementing Crypto Mortgage Apps & the "Three C's" According to Pulte, the agency is currently investigating the possibility of incorporating cryptocurrency into mort- gage applications, namely as a compo- nent of the asset evaluation procedure. The "three C's"—Credit, Capacity, and Collateral—are traditionally taken into account by underwriters. Financial strength is demonstrated by assets like cash, equities, and retire- ment accounts; however, cryptocurrency has mostly been left out because of its volatility and lack of clarity on regula- tions. Now, in today's markets, that could shift significantly. Candidates with substantial digital holdings may benefit from adding cryp- tocurrency as a "fourth C," particularly if they don't want to unload before closing on a property. The official recognition of cryptocur- rency holdings, particularly Bitcoin or sta- blecoins, as qualified assets might provide access to traditional lending for millions of Americans who have amassed riches through digital means. Lenders frequent- ly demand that assets be converted into fiat and "seasoned" in a bank account for months before they may be considered, even if a borrower has a sizable amount of cryptocurrency holdings. It might be time to update that pol- icy, according to Prashant Jha, a Crypto Journalist based in Delhi, India. The FHFA might assist in updating mortgage guidelines to reflect a shifting financial landscape and increase credit availability for borrowers who are digital natives by treating cryptocurrencies similarly to other liquid assets. The FH- FA's eventual approval of crypto-backed mortgage eligibility would represent a significant reversal of years of institu- tional prudence. Until recently, traditional lenders were concerned about just dealing with cryptocurrency holders. Crypto is now getting closer to being considered like any other asset class as regulatory momentum grows, and digital assets become more widely accepted. However, one thing remains certain: Crypto is no longer being disregarded at the top echelons of American banking, regardless of whether this opens the floodgates or just pushes the system forward. With continual economic shifts and uncertainty surrounding the future of the U.S. housing market, maybe this will allow more potential homebuyers—es- pecially first-timers—more opportunities to qualify for a mortgage, inching closer toward the American Dream. While innovation is critical, the real risk lies in D.C. bureaucrats layering redundant 'risk assessments' that duplicate existing fraud safeguards.