Fannie Mae raises interest rates: Cryptocurrencies allowed in the mortgage market!

Fannie Mae raises interest rates: Cryptocurrencies allowed in the mortgage market!

Fannie Mae, one of the largest institutions in the real estate financing sector, has revised its interest rate forecasts upwards. Rates on 30-year mortgages have been raised from 6.1% to 6.5%, tightening conditions for potential homebuyers. In this context, the sales forecasts for real estate were also revised downwards. The total number of homes sold will fall from 4.92 million to 4.82 million units, while existing single-family home sales will fall from 4.24 million to 4.14 million. These developments could have a significant impact on real estate markets, as increased interest rates and reduced sales forecasts indicate stagnant demand. boerse-express.com reports.

Amid these changes, Fannie Mae and Freddie Mac establish the U.S. Financial Technology, LLC. This new company will manage a large portfolio of mortgage-backed securities valued at $6.5 trillion. A notable aspect of this creation is that the securitization technology they are developing will not only be used for internal purposes, but can also be sold to other financial institutions. This could lead to a change in the financial technology industry and expand the business model of these companies.

Cryptocurrencies as collateral

Another innovative step is the Federal Housing Finance Agency (FHFA) asking Fannie Mae to develop proposals for considering cryptocurrencies when applying for mortgages. This would allow cryptocurrencies to be used as collateral without having to be exchanged for US dollars. However, these cryptocurrencies must be held on regulated US exchanges to ensure compliance.

According to the new guidelines, it is now possible to accept virtual currencies converted into US dollars for down payments, closing costs and financial reserves. However, borrowers must provide documented evidence that the exchanged virtual currency has actually been converted into US dollars and the funds are held in a regulated financial institution. Verification of funds exchanged is required, and large deposits can also come from virtual currency.

Important requirements for borrowers

However, there are restrictions regarding the use of cryptocurrencies as part of a mortgage loan. Virtual currencies may not be used for the down payment in the purchase contract (earnest money). Lenders are required to obtain sufficient documentation to confirm that the funds actually come from the borrower's virtual currency account. These strict requirements are intended to ensure that all financial resources are transparent and traceable and ultimately contribute to the stability of the mortgage market.

The developments surrounding Fannie Mae and the integration of cryptocurrencies show significant progress in adapting the financing landscape to modern trends. At a time when the real estate market is under pressure, these innovative approaches could make all the difference in supporting both borrowers and investors. Fannie Mae provides detailed information on this on its website.