The U.S. Federal Housing Finance Agency (FHFA) Explores Incorporating Cryptocurrency into Residential Mortgage Risk Assessments
On July 20 (UTC+8), July 19, the Federal Housing Finance Agency (FHFA) recently issued a directive exploring the inclusion of cryptocurrencies in the risk assessment of single-family mortgage loans. This move may allow long-term cryptocurrency holders to use their digital assets when applying for a mortgage without liquidation. The directive emphasizes that assets must be verified and stored through a U.S.-regulated centralized exchange, but does not mandate custody on the exchange. Self-custodied assets are considered the cornerstone of the crypto system due to their transparency, security, and lower counterparty risk. Experts are calling for a reasonable framework that supports both self-custodied and custodied assets, with appropriate valuation discounts for volatility, to drive the modernization of housing finance. [MetaEra]
The U.S. Federal Housing Finance Agency (FHFA) Explores Incorporating Cryptocurrency into Residential Mortgage Risk Assessments
On July 20 (UTC+8), July 19, the Federal Housing Finance Agency (FHFA) recently issued a directive exploring the inclusion of cryptocurrencies in the risk assessment of single-family mortgage loans. This move may allow long-term cryptocurrency holders to use their digital assets when applying for a mortgage without liquidation. The directive emphasizes that assets must be verified and stored through a U.S.-regulated centralized exchange, but does not mandate custody on the exchange. Self-custodied assets are considered the cornerstone of the crypto system due to their transparency, security, and lower counterparty risk. Experts are calling for a reasonable framework that supports both self-custodied and custodied assets, with appropriate valuation discounts for volatility, to drive the modernization of housing finance. [MetaEra]
