October 3, 2022

United States Mortgage Lender UWM Will No Longer Accept Bitcoin Payments

2 min read

United Wholesale Mortgage (UWM) – – a leading home mortgage service provider in the USA – – has actually decided to stop permitting its clients to settle payments in cryptocurrencies, pointing out “regulative uncertainty” in the industry as a factor.

Change of Heart

In August, the Michigan-based wholesale lending institution– United Wholesale Mortgage –– revealed that clients could pay for home loans in Bitcoin and therefore became the first major United States home loan provider to embrace digital properties as a payment approach. In the future, it included Ethereum and Dogecoin as choices, too.

“We’re happy to be the first mortgage loan provider to effectively pilot this innovation and further show that we’re innovating for the long term,” Mat Ishbia – – President and CEO of UWM – – stated back then.

According to a CNBC report, though, UWM has suspended its cryptocurrency offering after just two months. Ishbia revealed that throughout this duration, the consumer demand was not on the required level as there was only one home mortgage payment in September and five more in October settled in crypto:

“There was not enough need at the end of the day to really forge ahead too hard.”

The absence of a regulatory structure on cryptocurrencies is another reason that the company stopped accepting them as a way of payment.

“Due to the existing combination of incremental costs and regulatory unpredictability in the crypto area, we’ve concluded we aren’t going to extend beyond the pilot at this time,” Ishbia stated.

Consequently, the executive ensured that his company will follow the developments in the digital property space. If crypto “ends up being more mainstream,” UWM might once again supply such a payment method as they “know how to do it now,” he concluded.

Mat Ishbia
Mat Ishbia, Source: uwm.com Is Crypto Legislation That Urgent?

While numerous experts prompted the US financial guard dogs to carry out regulations on the digital possession industry, some opined that the scenario must remain the method it is.

Such is Elon Musk’s opinion, for instance. Last month, Tesla’s CEO advised the American government not to control cryptocurrencies as otherwise, the authorities could hamper their development. He went further, stating that doing nothing would be the best-case scenario:

“I would state, do nothing. I would really state, just let it fly.”

While the crypto neighborhood awaits more regulatory developments from various guard dogs, United States authorities have supplied encouraging news. Fed Chair Jerome Powell and SEC chief Gary Gensler recently assured that the nation has no objectives to ban digital possessions, only to control them.