An Crypto mortgage policy initiative faces an increasing opposition, while legislators warn against possible shocks for the real estate financing system.
In short
- Five American senators asked for answers to FHFA concerning a new policy to count Crypto assets in mortgage requests.
- Legislators warn that the inclusion of volatile digital assets in real estate financing could reintroduce systemic risks observed during old banking crises.
- FHFA defends this measure as limited in its scope, but criticisms question governance, ethics and lack of transparency as to risks.
Senators sound the alarm
Five American senators, Jeffrey Merkley, Elizabeth Warren, Chris Van Hollen, Mazie Hirono and Bernie Sanders, sent an official letter to the director of the Federal Housing Finance Agency (FHFA), William Pulte, expressing their concern about a new policy allowing non -converted cryptocurrency Mortgage credit.
The letter of July 24 requires complete documentation and complete transparency concerning a Directive of June 25 which ordered Fannie MAE and Freddie Mac to start evaluating the crypto assets verified held on regulated platforms in the United States as eligible reservations in mortgage requests for individual dwellings.
Risk for real estate market stability
Legislators believe that This directive could reintroduce vulnerabilities Recalling the regional banking crises of 2023, where exposure to the crypto has contributed to systemic instability. They ask the FHFA to communicate:
- A complete risk assessment of policy
- The approval calendar and the governance process
- The criteria used to determine which cryptocurrencies are eligible
- All internal or external meetings on the subject, including participants
- Ethical guarantees to prevent conflicts of interest
In particular, the senators highlighted the double role of Pulte as director of the FHFA and president of the Boards of Business Directors, suggesting that this structure compromises internal surveillance. They also noted that Pulte's husband would allegedly hold up to up to $ 2 million in cryptographic active ingredients, and asked if he had sought ethical advice or taken measures to divest himself.
Limited scope, important issues
While the FHFA stressed that the directive only applies to the centralized grant regulated scholarships in the United States, legislators remain skeptical. Policy could create a precedent by integrating volatile digital assets into the American real estate market, which is worth $ 12,000 billion.
Crypto defenders argue that this measure could modernize the subscription practices and expand real estate opportunities for native individuals of the crypto. They note that the crypto is increasingly an essential part of the balance sheets of young investors and deserves to be recognized in financial products such as mortgages.
However, the senators insist that any policy linked to the crypto is the subject of a “rigorous and independent analysis” before being implemented, in particular when it touches one of the most sensitive sectors of the economy.
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