Just a week ago, Federal Housing Finance Agency (FHFA) Director Bill Pulte issued a directive for Fannie Mae and Freddie Mac to begin preparing their businesses for the use of cryptocurrency in single-family mortgages. In response, originators are weighing the potential hurdles for offering crypto-backed loans.

Despite crypto’s promise, its extreme volatility poses risks, including margin calls if asset values drop. The FHFA‘s directive provides few details on how Fannie and Freddie will integrate crypto into risk models, underwrite loans or price collateral.

Phil Crescenzo, the Southeast division vice president for Nation One Mortgage Corp., details ⇒

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