Big Short? The Federal Housing Finance Agency of the United States has listed Crypto Assets as risk collateral for mortgages.

The Federal Housing Finance Agency ( (FHFA) ordered on Wednesday that the two federally regulated mortgage companies, Fannie Mae ) and Freddie Mac, may consider Crypto Assets as reserve assets and include them in the risk assessment criteria for lending. This federal-level order, which takes effect immediately, allows cash-strapped Crypto Assets holders the opportunity to qualify for home loans and fulfill their dream of homeownership.

William Pulte, the director of the Federal Housing Finance Agency, stated on social media that mortgage companies need to be prepared to treat Crypto Assets as collateral for loans. He mentioned that this executive order aligns with Trump's vision of making the United States the world capital of Crypto Assets. William Pulte's order did not specifically indicate which Crypto Assets could be considered as assets; however, it is worth noting that the official document from the Federal Housing Finance Agency emphasizes the need to begin implementation as soon as possible.

Summary of the Executive Order of the Federal Housing Finance Agency (FHFA)

Given the critical role that Fannie Mae and Freddie Mac play in the U.S. residential mortgage secondary market, the FHFA has issued a new executive directive requiring the inclusion of Crypto Assets in the acceptable asset categories for risk assessment of single-family residential loans, promoting long-term home ownership,

The FHFA pointed out that crypto assets, as an emerging asset class, have the potential to provide wealth accumulation opportunities outside of the stock and bond markets. It indicates that Fannie Mae and Freddie Mac need to be prepared to incorporate compliant crypto assets into their reserve asset categories and must also conduct risk assessment and management for crypto assets, submitting them for review to the FHFA. The order takes effect immediately, emphasizing the need for prompt execution.

Is the era of the housing subprime mortgage short selling coming again?

The character Michael Burry, the prototype of the movie "The Big Short," accurately predicted that the U.S. real estate market would inevitably crash. In 2008, the U.S. experienced a chain reaction due to subprime mortgages and events like Lehman Brothers, severely impacting the global real estate industry. At that time, banks, in order to facilitate real estate transactions, loosened their lending standards, allowing many borrowers with poor credit or lacking the ability to buy homes to obtain guarantees from banks and mortgage companies. Lehman Brothers even packaged these mortgages into bond products, which were sold to investors by bank financial advisors. When subprime borrowers in the secondary market could not pay their mortgage loans, major banks in the U.S. faced the risk of bankruptcy due to uncollectible debts. These banks, deemed too big to fail, eventually had no choice but to rely on government intervention for rescue. The U.S. government allowed the Federal Housing Finance Agency to take over the regulation of mortgage companies to save the banks. Since then, Fannie Mae and Freddie Mac have been directly controlled by the U.S. federal government. These two enterprises provide guarantees for more than half of the mortgage loans in the U.S., making them key players in the mortgage market.

The volatility of Crypto Assets is extremely high, and it is curious how banks and mortgage companies assess the "value" of this emerging asset. For those without a house, owning Crypto Assets presents a great opportunity to buy a home, but if they cannot afford the mortgage, there is still a significant risk of facing liquidation and bankruptcy.

Thank you, Donald! Should those who can't afford a house be grateful to Trump, the former real estate tycoon? Lost in thought.

This article Big Short? The United States Federal Housing Finance Agency lists crypto assets as risk collateral for mortgages, first appearing in Chain News ABMedia.