United Wholesale Mortgage will no longer accept cryptocurrencies
The country’s second largest mortgage lender – United Wholesale Mortgage – is reversing its plan to accept cryptocurrency.
Despite being “the first mortgage lender to successfully pilot this technology” over the past two months, UWM does not plan to continue offering cryptocurrencies as a payment option due to rising costs and volatility.
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“Due to the current combination of incremental costs and regulatory uncertainty in the crypto space, we have concluded that we will not proceed from a pilot at this time,” CEO Matt Ishbia said in a statement on Thursday.
As recently as August, Ishbia discussed its plans to accept bitcoin and other cryptocurrencies as payment as early as the third quarter during an interview. Stuart Varney “Varney & Company”.
Second largest US mortgage lender is accepting bitcoin: ‘We’re just offering options’
At the time, Ishbia said that UWM was not only going to accept bitcoin, but was also exploring the possibility of accepting Ethereum and other cryptocurrencies.
UWM began piloting the technology to see if it was a “faster, easier and cheaper solution”.
The mortgage lender accepted its first cryptocurrency mortgage payment in September, followed by five more cryptocurrency mortgage payments from borrowers in October.
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The transaction – not just for UWM but for the industry as a whole – was used as a “model for consumers to better assess cryptocurrency payment scaling,” according to UWM.
Even though UWM is not continuing with its prior plans, the company said that this “testing and learning process” will prepare UWM to make it available when cryptocurrency transactions are something that moves the organization forward.
UWM also said that it will continue to monitor the use of cryptocurrencies, blockchain technology, and opportunities for future use.
Granthshala Business’ Talia Kaplan contributed to this report.