Five US Senate Democrats have investigated the head of the country’s Housing Finance Agency on the project to consider how the crypto can be counted in the process of approval for some mortgages.
The Senators, led by Jeff Merkley, sent a letter to the Federal Housing Finance Agency (FHFA) director William Pulte on Friday stating to explain his plan “so that the potential risks and benefits of your order and the US housing market and its financial system for the financial system.”
Senators Elizabeth Warren, Chris Van Hallon, Mazi Herono and Bernie Sanders also signed the letter, seeking a response from August 7.
Last month, Palta ordered home mortgage buyers Fanny Mai and Freddie Mac to prepare how they could consider crypto holding in their risk assessment for a family mortgage loan, without converting Crypto into a US dollar.
The FHFA has supervised the Federal Home Loan mortgage corporation, the Federal National Martia Association, and the Federal National Martia Association since 2008. The two were kept under the government’s watch after the 2008 financial crisis due to the elimination of the sub -primary mortgage market.
Home buyers raised more concerns than Crypto’s risks
Senators said the plot plan “could introduce unnecessary risks to consumers and raise serious concerns about safety and health for US housing and financial markets.”
Under the current policy, he said that Fanny Mai, Freddie Mac, or any other issuer for the federal -backed mortgage mortgage, does not allow lenders to consider the crypto in determining mortgages unless it is converted into US dollars.
Senators added that Crypto has historically seen high volatility and liquidity cranes, and has been broadcasting that lenders who use crypto -use are “a growing risk that they will not get out of the crypto position and may not be able to change the cost of cash.”
“Crypto also pose more risk of losses caused by scams, cyber hacks, or physical theft, which houses owners at risk of losing their crypto assets with little hope of recovery,” Senators said.
Democrats say the order may have a dispute of interests
Senators added that they are also worried about how the FHFA, Fanny Mai and Freddie McCarepto’s people will stop the interests of the interests, “which can urgently affect their proposals,” which includes President Donald Trump and his family.
Trump is deeply included in the crypto industry, including tokens, a stebcon, crypto mining business and a trade platform with various memeocons and non -fungal tokens.
Senators also took the purpose of the return, saying financial revelations show that its spouse occupied Crypto up to 2 million Million, which “raises additional concerns about your potential conflicts.”
He added that there is a “serious controversy” because the order of the plot has said that Fanny Mai and Freddy Mac will have to get approval from their respective boards before moving forward with changes, but the plot is the chair of the board of each organization, which they have also accused of stacking with “industry allies”.
Senators want further clarification on order
Senators also claimed that the ruling of the plot was confusing and that there was no information on how Fanny Mai and Freddy Mac would prepare a proposal, assess the risks and benefits of the FHFA, or how the agency would submit feedback.
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“In view of the FHFA’s previous failures in proper monitoring of crypto -related activity, the clarification on this order is especially important,” he added.
The group also noted that Fanny Mai found in 2021 that the use of crypto and stubborn for reserves, payments or suicide attacks was the “minimum appeal request” in the industry.
He asked Plta to answer several questions, how would the sharing of communication on Crypto, the process of order approval and among others, would benefit from the conflicts of interests.
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