US Senators urge housing watchdog on crypto inclusion in mortgage approvals

A coalition of Democratic Senators led by Jeff Merkley sent a letter to Federal Housing Finance Agency director William Pulte demanding details on his July order instructing government-sponsored mortgage giants Fannie Mae and Freddie Mac to submit proposals for incorporating borrowers’ crypto holdings into mortgage risk assessments. Co-signers Elizabeth Warren, Bernie Sanders, Chris Van Hollen and Mazie Hirono said the initiative could expose the $12 trillion U.S. housing finance system to the price swings, liquidity crunches and hacking incidents that characterise digital‐asset markets. The lawmakers also flagged potential conflicts because Pulte chairs both GSE boards and his spouse reportedly holds up to $2 million in crypto. They requested documentation of any communications with industry participants, a timeline for public consultation and an explanation of safeguards for consumer protection and systemic stability. Current underwriting rules require liquidation of crypto into U.S. dollars before funds can be counted toward borrower reserves. Housing advocates fear that accepting volatile tokens could inflate debt-to-asset calculations and raise default risks, while crypto lobbyists argue that tokenised reserves improve financial inclusion. The senators asked for responses by August 7, signalling that the issue could become a flash-point in broader debates over the CLARITY, GENIUS and Anti-CBDC bills heading for Senate review later this summer.