United Wholesale Mortgage plans to be the first American mortgage lender to allow customers to make their mortgage payments with bitcoin.
In an article on Detroit Free Press, Pontiac-based mortgage lender United Wholesale Mortgage has announced that it has plans to start accepting bitcoin and other cryptocurrencies as mortgage payments by the end of the year.
In an earnings call with Wall Street analysts on Monday, CEO of United Wholesale Mortgage, Mat Ishbia, said on his company’s plan to accept cryptocurrency:
“We’re excited that hopefully (this year) we can actually execute on that before anyone in the country,"
He added that UWM would be looking to accept more than one cryptocurrency, stating:
“I think we’re starting with Bitcoin, but we’re looking at Ethereum and others. We’re going to walk before we run, but at the same time, we are definitely a leader in technology and innovation and we are always trying to be the best and the leader in everything we do."
Ishbia announced his company’s cryptocurrency ambitions during an earnings call on the UWM second quarter financial results, which, even though mortgage volumes were up, had seen decreasing margins – a problem throughout the industry.
Other cryptocurrency companies are looking into the mortgages sector. Canadian-based Digital payments company Mogo announced at the end of March that it would extend its bitcoin cashback rewards program to include mortgages. David Feller, CEO and founder of Mogo stated:
“It’s clear that we’re still in the beginning stages of seeing consumers add bitcoin to their financial portfolios, just as we’re seeing corporations add it to their balance sheets. Given the volatility and speculative nature of bitcoin, there’s an increasing number of Canadians who are looking for ways to participate without risking their own money, and our bitcoin rewards program meets this demand.”
“The residential mortgage market in Canada is a massive market estimated at about $1.7 trillion, and we’re pleased to provide Canadians with a great way to get a mortgage, while also earning bitcoin,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.