BeelineCrypto/BLNE

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Prospective American homebuyers may soon have the option of using their cryptocurrency holdings to bolster their mortgage applications, the head of the Federal Housing Finance Agency which supervises housing leaders Fannie Mae and Freddie Mac, recently announced.

In a statement on social media, Bill Pulte said, "After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage."

As reported by Samantha Delouya for CNN on June 25, the move marks a significant shift for Fannie Mae and Freddie Mac, which are under federal oversight and back over half of the mortgages in the U.S.

Under President Joe Biden's tenure, both organizations had advised against using income received in cryptocurrency to qualify for a mortgage, citing "the high level of uncertainty associated with cryptocurrency," Delouya wrote.

During President Donald Trump’s initial term, he expressed considerable skepticism towards cryptocurrencies, but his stance has since shifted. He now supports digital currencies, even launching a Trump-branded digital token and investing in a crypto initiative named World Liberty Financial through his family.

Pulte's new directive could be advantageous for homebuyers who prefer not to convert their digital currencies into U.S. dollars when applying for federally supported home loans, the CNN article noted.

This policy change comes amidst rising national home prices, which hit a record peak in May, and persistently high average mortgage rates. Last month, Trump proposed plans to privatize Fannie and Freddie, potentially ending their nearly two-decade-long federal conservatorship. This move is central to the U.S. housing finance system as it provides liquidity to the mortgage market by purchasing mortgages from lenders and repackaging them for investors.

However, experts cautioned that privatizing these entities could increase borrowing costs for homebuyers, as lenders might seek higher rates to offset the absence of a federal bailout guarantee, similar to the one during the 2008 financial crisis, Delouya wrote. It remains to be seen how incorporating cryptocurrencies as a valid asset class for mortgage applications might impact investor perceptions of risk, especially if Fannie and Freddie were to become public entities.

Pulte has instructed Fannie Mae and Freddie Mac to draft proposals on accepting cryptocurrencies as assets in mortgage processes. These proposals will require approval from both the board of directors and the FHFA before implementation. In his directive, Pulte emphasized that both entities should "consider additional risk mitigants per their own assessment, including adjustments for market volatility," according to Delouya.

Beeline Subsidiary Completes Crypto Real Estate Transaction

Beeline Holdings Inc., a rapidly expanding digital mortgage platform designed to streamline the journey to homeownership, announced that its subsidiary, Beeline Title Holdings, Inc. ("Beeline Title"), is actually integrating cryptocurrency into transactions.

It announced on June 25 that it had successfully completed one of the first residential real estate transactions funded by the sale of a cryptocurrency token secured by real property.

The transaction is a significant advancement in the integration of blockchain technology within real estate financing, merging decentralized finance with conventional title and escrow services.

"Several mortgage lenders are already developing funding models that involve the conversion of cryptocurrencies to U.S. dollars at closing," said Beeline Chief Executive Officer Nick Liuzza. "But for these models to function at scale, you need a title company that not only understands blockchain transactions — but has the infrastructure to disburse and reconcile them in compliance with federal and state regulations."

This pioneering cryptocurrency-facilitated transaction by Beeline Title sets the stage for a more extensive deployment. Beeline Loans, Inc., another subsidiary, is poised to introduce a Fractional Sale of equity product leveraging the crypto ecosystem in early August 2025, with Beeline Title handling the title and closing services for each deal — unless borrowers choose an alternative title company. Crucially, Beeline Title said it will make this platform available to all mortgage lenders, offering them a tested solution for the reconciliation, compliance, and disbursement of cryptocurrency token transactions.

Liuzza added, "Our team built Linear Title, one of the largest privately held title agencies in the U.S., prior to merging with Real Matters and going public on the TSX. Through 2019, we closed over one million title transactions across all 50 states, and this new platform is an extension of that expertise — tailored to the next generation of mortgage transactions."

As the adoption of cryptocurrency continues to grow and becomes subject to federal and state regulation, Beeline is positioning itself as a frontrunner in this rapidly evolving ecosystem, providing reliable infrastructure to assist lenders in scaling into a future where crypto and compliance are seamlessly integrated.

Quick Liquidity for Homeowners

Earlier this month, Beeline announced another innovative home equity product that allows homeowners to convert part of their home equity into cash without incurring new debt or monthly payments.

Beeline said it is partnering with RealCo to create stablecoins, a type of digital currency designed to have a stable value, to purchase equity from homeowners in need of liquidity. Beeline will handle customer outreach and service provision, while Beeline Title will manage the title and escrow services.

"Provided there's equity in the home, RealCo will mint coins at closing, which may then be converted into U.S. dollars," Liuzza explained. "This model enables us to provide homeowners with liquidity quickly, with an unprecedented model. The stablecoin mechanism becomes the catalyst for funding, and the stablecoin is secured by property recorded 1:1 in the blockchain and in the public record."

Beeline emphasizes that this transaction is not a loan but a novel financial arrangement that allows the company to "generate consistent revenue in any rate environment." According to a company statement, "The company expects this to drive faster percentage-based revenue growth than traditional mortgage lenders, and with the fees, it expects to be well-positioned to reach operational profitability beginning in Q4 2025."

The Catalyst: A Volatile Housing Market

Over the past few years, homebuyers have faced a volatile housing market characterized by escalating home prices and persistent high mortgage rates, reported Caitlin Cahalan for The Street on June 29. This has led many young Americans to postpone their dreams of homeownership, hoping for a future dip in prices, while others have abandoned the idea altogether.

Despite the uncertainty brought on by Covid in 2020 and 2021, mortgage rates plummeted to historic lows below 3%, enticing many to seize the opportunity for more affordable home buying. However, the initial pandemic-driven surge in housing demand drove up prices, and the subsequent inflation spike in 2022 further elevated housing costs. With mortgage rates now approaching 7%, the optimism for a robust summer market has diminished.

Today, affordability remains a critical concern for homebuyers, particularly as mortgage rates see-saw, Cahalan wrote. The forecast for the upcoming months remains murky, with experts predicting that buyers may continue to exercise caution, despite having more room to negotiate. According to Berkshire Hathaway HomeServices, buyer demand is expected to keep adjusting in response to the fluctuating mortgage rates. The consistent factor is the pursuit of more affordable housing options as living costs escalate — with many buyers waiting out the market for better conditions.

Inflation remains high following its surge in 2022, complicating Americans' efforts to manage everyday expenses while saving for significant financial goals, the article noted. A majority of potential homebuyers identify accumulating enough for a down payment as a major hurdle to owning a home. To find more affordable housing, 29% are open to downsizing, and 24% consider relocating out of state as viable options.

Ownership and Share Structure

According to Refinitiv, 25% of Beeline Holdings is owned by insiders and management and 3% is held by institutions. The rest is retail.

Top shareholders include the CEO Liuzza with 22.63%, Director Joseph Freedman with 1.37%, and Head of Investor Relations Geoffery Gwin with 0.79%.

Its market cap is US$12.47 million with 9.3 million shares outstanding. It trades in a 52-week range of US$0.62 and US$29.80.