United Wholesale Mortgage plans to accept cryptocurrency before the end of this year, saying it wants to be the first lender in the U.S. to do so.
NEW YORK – United Wholesale Mortgage (UWM), the second largest mortgage lender in the U.S., announced it will accept cryptocurrency for home loans by the end of this year. UWM wants to be the first lender to do so in the national mortgage industry.
“We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” said CEO Mat Ishbia during UWM’s second quarter earnings call. “That’s something that we’ve been working on, and we’re excited that hopefully, in (the third quarter), we can actually execute on that before anyone in the country because we are a leader in technology and innovation.”
At first, the company plans to accept bitcoin for home loans, but it’s also evaluating ether and other cryptocurrencies. It hopes to have everything finalized and accept one or more digital currencies by at least the end of the year, the Detroit Free Press reports.
UWM also announced during its earnings call that it had a record volume of mortgage business in the second quarter. At the same time, however, its profits are shrinking, which is impacting other lenders in the mortgage industry due to fluctuations in interest rates.
The company’s net income during the second quarter was $138.7 million, down from $860 million in the first quarter, even as the lender closed on a total of $59.2 billion in mortgages – a company record.
Source: “Second-Largest U.S. Mortgage Lender Will Accept Payment in Bitcoin,” CNBC (Aug. 19, 2021) and “UWM Sees Business Growth, Says It Plans to Start Accepting Bitcoin for Mortgage Payments,” Detroit Free Press
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