The US federal home loan regulator is looking into how crypto holdings could help mortgage seekers qualify for home loans. The move comes amid a decline in the number of mortgage applications in recent years as the US experiences a housing crisis.
In a statement on X on June 23, Bill Pulte, head of the Federal Housing Finance Agency (FHFA), said his agency will “study the usage of [sic] cryptocurrency holdings as it relates to qualifying for mortgages.”
Homeownership has remained relatively stable over the last 50 years in the US, with around 62% of the population owning homes. However, the number of new applicants has seen a sharp decline in recent years.
While some boutique lenders already allow borrowers to use their crypto as collateral, study and acknowledgement from the FHFA would represent a major step forward for crypto adoption, particularly amid flagging mortgage application numbers.
FHFA goes pro-crypto on mortgages, while housing rates decline
While scant on details, Pulte’s pro-crypto comments come at a time when the US housing market is experiencing serious difficulties.
The number of mortgage originations — i.e., the process in which a lender works with a borrower to form a mortgage loan — dropped to near record lows in the middle of 2024 and has improved little in the first quarter of 2025. The drop in originations, and particularly in refinancing, has been attributed to several factors.
Firstly, the supply of housing is not growing sufficiently to address demand. Construction is lagging, more housing is being purchased by investors, rather than by would-be homeowners, and elderly homeowners are still living at home rather than moving to senior living accommodations.
Borrowing is also getting more expensive, and many have attributed the slump in originations to the Federal Reserve’s higher interest rates to combat inflation. Pulte has criticized the Fed’s rate policies, going so far as to call for the resignation of Chair Jerome Powell, who will be testifying before Congress on June 26.
Amid these headwinds, Pulte is looking for ways to make borrowing more feasible for homeowners.
FHFA approval could open up lenders to crypto
Acknowledging crypto officially at the FHFA could open up sizeable federal lending programs for more borrowers. In 2024, the FHA alone issued over 760,000 single-family mortgages worth $230 billion.