In Bulletin 2021-36 Freddie Mac addresses cryptocurrency in the mortgage qualification process. Freddie Mac has indicated that he provides advice”[d]due to the high level of uncertainty associated with cryptocurrency.
Freddie Mac advises that the Seller/Repairer Guide is updated to include the following tips:
- Income paid to the borrower in cryptocurrency cannot be used to qualify for the mortgage.
- For types of income that require proof of sufficient remaining assets to establish probable continuance (e.g. distributions from retirement accounts, trust income, and dividend and interest income, etc.), these assets may not be in the form of cryptocurrency.
- Cryptocurrency cannot be included in the calculation of assets as a basis for bond redemption.
- Monthly payments on debt secured by cryptocurrency must be included in the debt payment to income ratio of the borrower and are not subject to the provisions of the guide regarding installment debt secured by financial assets.
- The cryptocurrency must be exchanged for US dollars if it will be needed for the mortgage transaction (i.e. all funds to be paid by the borrower and the borrower’s reserves).
Freddie Mac notes that it “will continue to monitor cryptocurrency developments and may update these requirements as appropriate in the future.”