As of June 27, 2024, Michael Saylor, Executive Chairman of MicroStrategy, is engaging with U.S. Federal Housing Finance Agency (FHFA) Director William Pulte. This dialogue, as reported by Cryptobriefing, focuses on integrating Bitcoin into mainstream mortgage lending. The FHFA is considering allowing cryptocurrency to be considered in mortgage applications, according to recent reports from CNBC, ABA Banking Journal, and CoinDesk.
Saylor proposes sharing a Bitcoin Credit Model with the FHFA. This model assesses loan risks using Bitcoin-specific metrics. The FHFA's openness to crypto assets marks a shift from previous practices, potentially influencing federal housing agencies like Fannie Mae and Freddie Mac.
Bitcoin-backed mortgages use Bitcoin as collateral, often over-collateralized to manage price volatility. This approach could appeal to crypto-rich individuals. The future of these mortgages depends on the ability of institutions to manage Bitcoin's volatility responsibly.