Redfin’s chief economist expresses caution regarding the incorporation of crypto holdings in mortgage evaluations, highlighting potential risks and volatility concerns.
Redfin chief economist Daryl Fairweather has raised concerns about the inclusion of crypto holdings in mortgage risk assessments. The US government is considering counting digital asset holdings for mortgage applicants, following a directive for Fannie Mae and Freddie Mac to study this possibility. Fairweather warned that the volatility and custody issues associated with crypto may not be adequately captured in traditional financial models. Currently, borrowers must liquidate their crypto assets months in advance to use them for mortgage applications. The review is in early stages and applies only to crypto on US-regulated exchanges, excluding private wallets and offshore holdings.