Fannie Mae and Freddie Mac update their asset models, and the U.S. adopts Crypto Assets to address mortgage loan risks.

Gate News bot reports that according to CryptoSlate, the director of the Federal Housing Finance Agency (FHFA), Willian J. Pulte, ordered on June 25 that Fannie Mae and Freddie Mac must consider Crypto Assets reserves as eligible assets when assessing single-family mortgage loan risks, and the order is effective immediately.

The two government-supported enterprises must draft a plan that outlines how to identify the borrower's Crypto Assets holdings without first converting the Crypto Assets into US dollars.

The directive signed by Purt requires each enterprise to limit the scope of recognition to the Crypto Assets in wallets controlled by centralized exchanges regulated by the United States.

The command also requires companies to increase risk mitigation measures that consider market volatility and maintain a reserve ratio that reflects the share of digital asset collateral.

In addition, each company must obtain board approval before submitting a complete proposal for review by the Federal Housing Finance Agency (FHFA) regulator.

This command takes effect immediately. Fannie Mae and Freddie Mac purchased and securitized most eligible U.S. residential mortgages. Their risk models determine how much capital they must hold to withstand potential credit losses.

According to the directive text, by allowing Crypto Assets reserves to enter these models, Pulte aims to expand the asset information available for underwriting and "provide sustainable home ownership for reputable borrowers."

The directive requires each company to formulate an assessment that incorporates Crypto Assets reserves into its existing loan risk framework. The assessment must describe how the company will value the Crypto Assets, how discounts will be applied, and how adjustments will be made based on daily price fluctuations.

The directive also requires an analysis of the interaction between the Crypto Assets reserves and the assets and liabilities of other borrowers. After approval by the board, each enterprise must submit the proposal to the Federal Housing Finance Agency (FHFA) for signature before it can be implemented.

By exercising the power to issue binding directives that change the underwriting or capital standards, Pulte accelerated a process that would otherwise require rule-making or legislative action.

This command will not change the loan limits or document requirements for eligible loans, but will expand the categories of qualified reserves.