Several US Democratic Senators Oppose Including Cryptocurrency in Residential Mortgage Assets

According to a report by Jinse Finance, the U.S. Federal Housing Finance Agency (FHFA) has recently issued a directive to explore how cryptocurrencies could be incorporated into single-family residential mortgage risk assessments. U.S. Senator Lummis has also introduced new legislation requiring cryptocurrencies to be included as mortgage assets. In response, several Democratic senators, including Warren and Van Hollen, have voiced their opposition. They argue that under current policies, neither corporate lenders nor any other federally supported, guaranteed, or insured mortgage channels are permitted to consider cryptocurrencies when determining a borrower's ability to repay a mortgage, unless the cryptocurrency has been converted into U.S. dollars and is accompanied by the appropriate documentation. Including unconverted cryptocurrency assets in such assessments could pose risks to the stability of the real estate market and the financial system.