The administration of U.S. President Donald Trump is considering allowing Americans to use their cryptocurrency holdings as collateral to secure home mortgages.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Mortgage lenders typically review financial details such as salaries, debt, bank balances, and retirement accounts when determining how risky it is to lend money to a potential homeowner. Until now, cryptocurrency assets have been excluded from consideration in mortgage applications.
For the 15% of Americans who own digital assets such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) that could soon change. A new directive issued by the U.S. Federal Housing Finance Agency has ordered mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) to develop proposals that would allow crypto assets to be considered in risk assessments for single-family homes.
Risky Move?
With interest rates elevated and the U.S. housing market in a prolonged slump, the Trump administration is looking at options to give the residential real estate sector a boost and make it possible for more people to buy a house. The average single-family home price in the U.S. is about $400,000.
The director of the U.S. Federal Housing Finance Agency, Bill Pulte, wrote in a social media post that he has ordered Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a home mortgage. Pulte said the directive is “in keeping with President Trump’s vision to make the United States the crypto capital of the world.”
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 10.69% in the last 12 weeks.
