Redfin economist urges caution as government considers crypto-backed mortgage assessments

Daryl Fairweather, Redfin’s chief economist, warns against incorporating cryptocurrencies into mortgage assessments due to inherent risks like volatility and cyber threats. The proposed inclusion of crypto holdings in evaluations by the US government is still under study.

Currently, borrowers need to liquidate their crypto assets prior to applying for a mortgage. The Federal Housing Finance Agency’s directive for Fannie Mae and Freddie Mac to consider crypto could lead to significant changes if approved.