Sponsor
Cynthia M. Lummis
Senator · R-WY
Senator · R-WY
The bill lets crypto holders use qualifying digital assets to qualify for mortgages and creates clearer custody rules and oversight, but it increases exposure to crypto volatility and adds compliance costs that could raise risks and costs for borrowers, lenders, and taxpayers.
Homebuyers with crypto holdings: can count qualifying digital assets toward single‑family mortgage reserves without converting to dollars, potentially improving mortgage eligibility and access to homeownership.
Regulated custodians and lenders: receive clearer, standardized custody definitions and formal FHFA/board review of methodologies, reducing legal and operational uncertainty around acceptable proof of reserves.
Taxpayers and lenders: benefit from required risk‑based adjustments and periodic reviews that aim to account for digital‑asset volatility and liquidity, helping limit exposure from sharp crypto price swings.
Taxpayers, lenders, and middle‑class families: face greater potential mortgage losses if volatile digital assets are overvalued or adjustments understate price swings, increasing financial risk to the mortgage system.
Homeowners and prospective borrowers who rely on crypto: may become more financially fragile if they leverage volatile assets to qualify for mortgages and then see asset values decline.
Homeowners and consumers: could face higher costs if lenders incur added operational and compliance expenses from regulated custody arrangements and FHFA review and pass those costs onto borrowers.
Based on analysis of 2 sections of legislative text.
Allows Fannie Mae and Freddie Mac to count certain borrower-held digital assets held under qualified custodial arrangements as mortgage reserves for single‑family risk assessments, subject to risk adjustments and FHFA review.
Official title: Require government-sponsored enterprises to consider digital assets in a mortgage loan risk assessment.
Introduced July 28, 2025 by Cynthia M. Lummis · Last progress July 28, 2025
Allows Fannie Mae and Freddie Mac to treat certain borrower-held digital assets, when held under a qualified custodial arrangement, as part of borrowers’ reserves for single-family mortgage risk assessment without first converting them to U.S. dollars. The corporations must apply risk‑based adjustments for volatility, liquidity, and concentration, obtain board approval for methodologies, and submit approved approaches to the Federal Housing Finance Agency (FHFA) for review before implementing or materially revising them.