21st Century Mortgage Act of 2025

This legislation mandates that government-sponsored enterprises, specifically Fannie Mae and Freddie Mac , incorporate digital assets into their risk assessments for single-family mortgage loans. It defines a "digital asset" as a digital representation of value on a cryptographically-secured distributed ledger, excluding non-fungible assets. Under this bill, borrowers may include their digital asset holdings in their financial reserves for mortgage applications, provided these assets are held in a qualified custodial arrangement and do not need to be converted to U.S. dollars. To mitigate potential risks, the enterprises must apply appropriate adjustments for the market volatility and liquidity of digital assets, along with their concentration within a borrower's reserves, and periodically review these adjustments. Any new or substantially revised methodology for assessing digital assets requires approval from the enterprise's board of directors and review by the Director of the Federal Housing Finance Agency .