The US housing sector may be moving toward recognizing crypto in mortgage underwriting, but Redfin’s chief economist urges caution.
Daryl Fairweather warned that crypto poses risks traditional finance models may not fully capture, pointing to volatility, custody concerns, and cyber threats. “There are unknown risks in crypto that maybe will not be fully accounted for,” she said.
Her comments follow a new directive from the Federal Housing Finance Agency (FHFA), which ordered Fannie Mae and Freddie Mac to study whether digital assets held on US-regulated exchanges could be factored into mortgage risk assessments.
The review is in early stages and doesn’t change existing rules, but it signals a meaningful step in the government’s consideration of crypto within the housing finance system.
Currently, borrowers must liquidate crypto months in advance to use it in mortgage applications. If future rules allow it to count as reserves without conversion, long-time holders could retain their assets and still qualify.
The directive applies only to crypto on centralized, US-regulated exchanges, excluding private wallets and offshore holdings. Any formal change would still require approval from both Fannie and Freddie boards and the FHFA.