Fannie Mae adds virtual currency requirements to Selling Guide
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Regulatory Updates
Wednesday, May 18, 2022
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In SEL-2022-04, Fannie Mae added requirements on the use of virtual currency, effective immediately.
It established the following requirements for virtual currency:
- Income paid in the form of virtual currency may not be considered when qualifying a borrower.
- Assets used to establish continuance for certain income types cannot be in the form of virtual currency.
- The purchase price of the property and any earnest money deposit may not be designated in virtual currency.
- The payment used as rental income must be in U.S. dollars.
- Payment on any installment debt secured by virtual currency must be included in the debt-to-income ratio calculation.
It further stated that virtual currency that has been exchanged into U.S. dollars is acceptable for the down payment, closing costs, and financial reserves, provided there is documented evidence that the virtual currency was exchanged into U.S. dollars and is held in a U.S. or state regulated financial institution, and the funds are verified in U.S. dollars prior to the loan closing.
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