In Bulletin 2021-36 Freddie Mac addresses cryptocurrency in the mortgage qualification process. Freddie Mac indicated that it is providing guidance “[d]ue to the high level of uncertainty associated with cryptocurrency.”
Freddie Mac advises that the Seller/Servicer Guide is updated to include the following guidance:
- Income paid to the borrower in cryptocurrency may not be used to qualify for the mortgage.
- For income types that require evidence of sufficient remaining assets to establish likely continuance (e.g., retirement account distributions, trust income and dividend and interest income, etc.), those assets may not be in the form of cryptocurrency.
- Cryptocurrency may not be included in the calculation of assets as a basis for repayment of obligations.
- Monthly payments on debts secured by cryptocurrency must be included in the borrower’s debt payment-to-income ratio and are not subject to the guide provisions regarding installment debts secured by financial assets.
- Cryptocurrency must be exchanged for U.S. dollars if it will be needed for the mortgage transaction (i.e., any funds required to be paid by the borrower and borrower reserves).
Freddie Mac notes that it “will continue to monitor cryptocurrency developments and may update these requirements as appropriate in the future.”