Latest news with #WilliamJ.Pulte
USA Today
06-07-2025
- Business
- USA Today
Bitcoin just became a path to homeownership. Here's how
Due to the rising cost of housing in America, many young people now think they might not ever be able to afford a new house. But don't worry, Bitcoin (CRYPTO: BTC) could change all that and make home ownership a reality. At the end of June, the U.S. Federal Housing Finance Agency issued a new directive, instructing both Fannie Mae and Freddie Mac to count Bitcoin as an asset on single-family home mortgage applications. Previously, mortgage applicants had to convert any Bitcoin holdings into U.S. dollars if they wanted their crypto to count. Given Bitcoin's rapid price appreciation over the past decade, this move could end up being a real game-changer. Here's why. The price of housing is out of control Most people agree that the American dream of buying a new home is currently out of reach. Prices for homes have been soaring, and higher interest rates have put mortgage payments out of reach for many would-be home buyers. There's plenty of evidence to support this. In July 2024, a CNN survey reported that 86% of all renters said they would like to buy a home but can't afford one. And 54% of those said that it was "unlikely" that they would ever be able to. The problem is even more profound for young would-be homeowners, who now face a slowing economy and nagging thoughts that AI could be coming for their jobs. How are they ever possibly going to be able to afford a new house? Bitcoin as a hedge against inflation And that's where Bitcoin comes into the picture. If you think the prices of new homes are soaring, then what about the price of Bitcoin? In 2022, the price of Bitcoin was $17,000. Today, the price of Bitcoin is $107,000. If you had purchased Bitcoin in 2012, when it was trading for less than $100, you'd be able to afford just about any type of home you could imagine today. A new 30-second ad from Coinbase Global makes this point perfectly. The Coinbase ad shows a beautiful, two-story, pastel blue suburban home with a manicured lawn — the stuff that homeowner dreams are made of. A voice intones: "In 2012, you'd need 30,000 Bitcoin to buy this house... A decade later, it would only take you 20 Bitcoin... And, today, it could be yours for 5." But the real kicker comes at the end of the ad: "If home prices keep falling in Bitcoin, why do they keep rising in dollars?" That, in a nutshell, is why investing in Bitcoin could help you afford your next house. Bitcoin is a disinflationary asset and a potential hedge against inflation. Best of all, Bitcoin is widely available to everyone. You don't need to be an accredited investor and you don't need millions of dollars. In fact, most cryptocurrency exchanges will let you start buying Bitcoin with just a few bucks. How will the new rules work? The U.S. government is thinking out of the box on this one. According to William J. Pulte, Director of the U.S. Federal Housing Finance Agency, this new thinking about Bitcoin is part of a bigger vision by the Trump administration to make America the "crypto capital of the world." And what better way to do that than by making the American dream of home ownership a reality again? Right now, it's just a directive, instructing Fannie Mae and Freddie Mac to get busy on this. According to the text of this directive, it will apply to all crypto "evidenced and stored on a U.S.-regulated centralized exchange." And it will give Fannie Mae and Freddie Mac a bit of wiggle room when it comes to adjusting for risk, volatility and overall market conditions. One big winner in all of this could be centralized cryptocurrency exchanges such as Coinbase. It's still early, but it looks like you won't be able to list Bitcoin as an asset on a mortgage application if you have it stored anywhere else. So, for example, you won't be able to count your Bitcoin if you have it in cold storage on a hardware device hidden under your bed. Also, the directive doesn't mention spot Bitcoin ETFs, so it will be interesting to see what develops here. With these ETFs, Bitcoin is held only "indirectly," not "directly." So will this Bitcoin count also? If it doesn't, it's easy to envision a scenario in which people stop buying the spot Bitcoin ETFs and shift to buying Bitcoin on Coinbase. Get ready to buy a new home with Bitcoin The really exciting part about all this is that many top investors now expect Bitcoin to hit $1 million within the next five years. For example, Cathie Wood of Ark Invest thinks Bitcoin will hit $1.48 million by the year 2030. Given Bitcoin's current price of $107,000, that's a more than 10x increase within a very short period of time. With those types of gains, you could be well on your way to home ownership in just a few years. Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Bitcoin right now? Offer from the Motley Fool: Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $713,547!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $966,931!* Now, it's worth notingStock Advisor's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks »
NBC News
26-06-2025
- Business
- NBC News
Trump administration moves to count crypto as a federal mortgage asset
In a landmark shift for the U.S. housing finance system, the Federal Housing Finance Agency has issued a directive ordering Fannie Mae and Freddie Mac to formally consider cryptocurrency as an asset in single-family mortgage loan risk assessments. The move, signed by FHFA Director William J. Pulte on Wednesday, signals a new era of crypto integration into traditional financial infrastructure — this time within the core of American home lending. The order directs both housing finance giants to develop proposals that include digital assets — without requiring borrowers to liquidate them into U.S. dollars prior to a loan closing. Pulte said in a post on X that the move aligns with President Donald Trump 's vision 'to make the United States the crypto capital of the world.' Historically, cryptocurrency has been excluded from underwriting frameworks due to volatility, regulatory uncertainty, and the inability to easily verify reserves. This directive changes that. The decision comes at a time of increasing institutional embrace of crypto across banking, payments, and federal policy. 'Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets,' the order states, acknowledging crypto's growing role in household financial portfolios. The directive restricts consideration to digital assets that are stored on U.S.-regulated, centralized exchanges and can be clearly evidenced. It also requires Fannie Mae and Freddie Mac to develop internal adjustments to account for crypto's market volatility and ensure that any risk-weighted reserves comprised of crypto do not compromise underwriting standards. Under the directive, both enterprises must submit their assessment proposals to the boards of directors for approval and then to the FHFA for final review. Fannie Mae and Freddie Mac were put under government control in September 2008 as entities that are known as government-sponsored enterprises, or GSEs.
Forbes
26-06-2025
- Business
- Forbes
Mortgage Rule Change Adds Crypto. What Homebuyers Should Know
AUSTIN, TEXAS - A home available for sale as a new FHFA directive allows borrowers to use Bitcoin ... More and other approved cryptocurrencies as mortgage reserves, signaling a major shift in U.S. housing policy and crypto adoption. (Photo by) Crypto to Count in Mortgage Approvals Under New Federal Housing Rule In a seismic shift for U.S. housing policy, the Federal Housing Finance Agency has ordered Fannie Mae and Freddie Mac to find ways to treat cryptocurrency as a legitimate reserve asset in mortgage risk assessments. Signed June 25, 2025, by FHFA Director William J. Pulte, the order means that Bitcoin and a short list of compliant crypto holdings could soon help borrowers qualify for conventional home loans, without converting their assets into dollars. Pulte made the announcement on X, saying he has "ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage." The move aligns with President Donald Trump's push to make America 'the crypto capital of the world.' Under the directive, the mortgage giants must develop internal frameworks to evaluate crypto held on U.S.-regulated exchanges, factor in volatility, and submit final proposals to their boards and the FHFA for approval. Fannie and Freddie's Crypto Shift Could Change Mortgage Standards Nationwide Fannie Mae and Freddie Mac, which back more than half of all U.S. mortgages, do more than support lending. They set standards that the entire housing market follows. When their credit criteria change, private lenders take notice. After the 2008 financial crisis, both were placed under federal conservatorship to stabilize the housing system. Now, they are helping to redefine it. This decision resolves a long-standing paradox for crypto holders. Previously, anyone hoping to use digital assets toward a down payment or reserve requirement had to sell first and pay capital gains tax. The new guidance allows borrowers to retain qualifying crypto, avoid triggering a tax bill, and still meet mortgage underwriting criteria. With 64.9% Market Share, Bitcoin Cements Itself as Crypto's Most Trusted Asset A full list of qualifying digital assets has not yet been released, though Bitcoin is expected to be included. Bitcoin now accounts for 64.9 percent of the entire crypto market. This level of dominance signals that Bitcoin is seen as the most trusted and proven digital asset, offering more stability than any other token. It also reflects the emergence of a deep, maturing asset class that traditional lenders may now begin to treat more like cash or Treasuries. Mortgage Policy Lets Buyers Use Crypto Without Triggering Taxes With the potential for crypto assets to guide loan decisions, there are practical benefits for certain borrowers. Recognizing crypto as a reserve asset could lower barriers for first-time and lower-income homebuyers. Currently, using digital assets toward mortgage qualifications often requires selling, which results in capital gains taxes. The new approach allows borrowers to retain qualifying crypto and potentially avoid tax consequences. It may also improve approval odds, as reserve assets are considered a compensating factor in underwriting. Applicants with limited income but sufficient crypto holdings could present a stronger financial position. Additionally, the change may reduce the need for some households to tap home equity to acquire digital assets, instead allowing existing crypto holdings to support home purchases. Fannie Mae Research Highlights Crypto's Potential to Ease Home Buying Barriers Allowing crypto to count toward mortgage underwriting could expand access to homeownership, particularly for younger and more diverse populations, who are more likely to hold digital assets. Current guidelines often require liquidation of crypto to meet reserve or down-payment requirements, resulting in taxable events and reduced exposure to a historically high-performing asset. Fannie Mae research states that down-payment constraints remain a leading barrier for Black and Latino borrowers, and revised policies could help address this gap. Bitcoin's historical volatility has declined as the asset has matured and its market capitalization has increased. Similar to gold's early behavior, Bitcoin experienced high volatility during its early years but has shown a downward trend in price fluctuations over time. Only Exchange-Held Crypto Qualifies Under New Mortgage Guidelines Based on Pulte's letter, only crypto held at U.S.-regulated exchanges will qualify under the new guidelines. This approach simplifies know-your-customer compliance but excludes borrowers who self-custody their assets on hardware wallets, which is a common practice among crypto users. While it may be possible to temporarily transfer assets to approved custodians to meet underwriting requirements, doing so introduces additional steps and complexity for borrowers. Investors in mortgage-backed securities will likely need to determine the updated risk profile digital assets present. Credit rating agencies, which are not under direct federal oversight, may review the performance of crypto-backed mortgages before deciding on their eligibility for inclusion in government-backed mortgage pools. The outcome may influence the timeline and extent of adoption within the broader housing finance system. Crypto Lenders See Momentum as FHFA Opens Door to Digital Assets Milo, a Miami-based fintech that has issued over $65 million in crypto-backed mortgages, responded to the order on X, saying, 'If the FHFA embraces this path, it could mark a major shift in how modern wealth is recognized in mortgage lending.' The company offers up to 100 percent financing without liquidating Bitcoin or Ether. Until Fannie Mae and Freddie Mac officially adopt their own standards, specialty lenders like Milo act as a simulation for broader implementation. Trump's Crypto Agenda Raises Questions for Mortgage Policy and Market Stability The proposed order underscores a broader shift in how crypto is treated under federal policy since President Trump began his second term. In January 2025, President Trump appointed Pulte as director of the FHFA, aligning housing oversight with the administration's focus on digital assets. Initiatives like the Strategic Bitcoin Reserve and pledges to make 'America the crypto capital of the world' signal a deeper integration of crypto into traditional finance. Extending that approach to mortgage lending brings it into a sector that touches nearly every American household. President Trump has also engaged personally in crypto markets through branded NFTs and public support for specific digital assets. His involvement has prompted scrutiny over whether political appointments and regulatory moves could influence projects with which he or his associates are connected. Plenty of Unanswered Questions With Proposed Mortgage Rules Several questions remain regarding if, and how, the policy changes will be implemented. Bitcoin is expected to qualify, but it is unclear whether stablecoins that aim to maintain dollar parity will be included. Additional considerations include whether self-custodied wallets will be allowed or if only assets held on regulated platforms will qualify. Advocacy groups continue to raise this issue in policy discussions. It is also unclear whether income from staking or mining will be counted in the future. The current order applies only to reserves and does not address income calculations used in loan underwriting. Weighing the Risks and Benefits of Crypto-Backed Mortgages Allowing crypto to count toward mortgage reserves could offer several benefits. Borrowers may avoid triggering capital-gains taxes by holding rather than liquidating digital assets. The policy could also expand credit access for younger and more diverse households that primarily hold crypto. It aligns U.S. housing finance with broader digital-asset adoption and may encourage fintech innovation while supporting domestic tech talent. There are plenty of risks to consider as well. Because crypto prices can change quickly, the value of a borrower's reserves could drop, making the loan riskier. Verifying the value and ownership of digital assets may be difficult, especially with concerns about fraud. Investors who buy mortgage-backed securities might require higher returns to account for this added risk. Bottom Line The FHFA's order does not designate crypto as legal tender or guarantee broad access to home loans for digital asset holders. However, it formally recognizes that certain cryptocurrencies can play a role in mortgage reserve calculations. By allowing borrowers to include Bitcoin and other eligible digital assets, the agency has introduced a new consideration into housing finance and regulatory frameworks. The impact of this policy will depend on how it performs in practice. If effective, it may expand access to homeownership for individuals holding appreciated crypto assets without converting them to cash. If challenges emerge, the outcome could affect the stability of the government-sponsored enterprises involved. The program will serve as a test of how digital asset holdings interact with traditional mortgage standards.
CNBC
25-06-2025
- Business
- CNBC
Trump administration moves to count crypto as a federal mortgage asset
In a landmark shift for the U.S. housing finance system, the Federal Housing Finance Agency has issued a directive ordering Fannie Mae and Freddie Mac to formally consider cryptocurrency as an asset in single-family mortgage loan risk assessments. The move, signed by FHFA Director William J. Pulte on Wednesday, signals a new era of crypto integration into traditional financial infrastructure — this time within the core of American home lending. The order directs both housing finance giants to develop proposals that include digital assets — without requiring borrowers to liquidate them into U.S. dollars prior to a loan closing. Pulte said in a post on X that the move aligns with President Donald Trump's vision "to make the United States the crypto capital of the world." Historically, cryptocurrency has been excluded from underwriting frameworks due to volatility, regulatory uncertainty, and the inability to easily verify reserves. This directive changes that. The decision comes at a time of increasing institutional embrace of crypto across banking, payments, and federal policy. "Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets," the order states, acknowledging crypto's growing role in household financial portfolios. The directive restricts consideration to digital assets that are stored on U.S.-regulated, centralized exchanges and can be clearly evidenced. It also requires Fannie Mae and Freddie Mac to develop internal adjustments to account for crypto's market volatility and ensure that any risk-weighted reserves comprised of crypto do not compromise underwriting standards. Under the directive, both enterprises must submit their assessment proposals to the boards of directors for approval and then to the FHFA for final review. Fannie Mae and Freddie Mac were put under government control in September 2008 as entities that are known as government-sponsored enterprises, or GSEs.
Yahoo
28-05-2025
- Business
- Yahoo
Fannie Mae Launches AI Fraud Detection Technology Partnership with Palantir
Fannie Mae's Crime Detection Unit Will Boost Safety and Soundness and Save Millions by Preventing Future Fraud Losses in U.S. Mortgage Market WASHINGTON, May 28, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced the launch today of its AI-powered Crime Detection Unit in partnership with leading AI software company Palantir. The new partnership will expand Fannie Mae's fraud detection capabilities with leading AI-enabled financial crimes data science and investigations technology. This foundation will power Fannie Mae's Crime Detection Unit, a new platform that the company believes will help detect and prevent mortgage fraud with speed and precision never before seen in the U.S. housing market. Fannie Mae's Crime Detection Unit's capabilities will save the U.S. housing market millions in future fraud losses. Palantir designs and deploys artificial intelligence and machine learning technology used by government agencies and commercial clients. The company's technology provides expansive monitoring for anomalous transactions, activities, and behaviors to help companies detect suspicious activity and trigger investigative action. "No one is above the law. In partnership with Palantir, Fannie Mae's Crime Detection Unit will increase safety and soundness by rooting out bad actors in our housing system. This cutting-edge AI technology will help us find criminals who try to defraud our system," said Fannie Mae Chairman William J. Pulte. "By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable," said Priscilla Almodovar, Fannie Mae's president and chief executive officer. "This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers." Fannie Mae has more than $4.3 trillion in assets and plays a foundational role in the U.S. housing market. The company is the largest holder of residential mortgage debt outstanding in the country, owning or guaranteeing an estimated one in four single-family mortgages and 20 percent of multifamily mortgages in the U.S. "This partnership with Fannie Mae will set off a revolution in how we combat mortgage fraud in this country. We are bringing the fight directly to anyone who attempts to defraud our mortgage system and exploit hardworking Americans," said Alex Karp, co-founder and chief executive officer of Palantir Technologies. This release includes forward-looking statements, including statements about Fannie Mae's and Palantir's plans and expectations with respect to the Crime Detection Unit and the impact of the Crime Detection Unit on Fannie Mae's business and financial results, and on the U.S. housing market. Actual results and events may turn out to be very different from these statements. Factors that may lead to different results and events are discussed in "Forward-Looking Statements" and elsewhere in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2025, and in "Risk Factors," "Forward-Looking Statements" and elsewhere in the company's Form 10-K for the year ended December 31, 2024. The company's forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under the federal securities laws. Follow Fannie Fannie Mae Newsroomhttps:// Fannie Mae Resource Center:1-800-2FANNIE (800-232-6643) View original content to download multimedia: SOURCE Fannie Mae Sign in to access your portfolio
