- The SPAC Company is the first in the sector to start receiving cryptocurrencies.
- In this way, US home buyers will have the option to pay their mortgages in digital currency.
United Wholesale Mortgage (UWM), the second largest mortgage lender in the United States, announced that it is willing to receive payments in Bitcoin (BTC). The US mortgage bank wants to bite into some of the crypto pie, at a time when regulations on cryptocurrency appear to be widening its acceptance in the country.
The UWM announcement is a further boost to BTC, which has been hovering above $ 46,000 since last week. The company plans to accept payments in Bitcoin starting in the third quarter of this year. This could lead to other highly leveraged cryptos like Ethereum as well.
At the end of the year, American home buyers will enjoy the option to pay their mortgages in digital currency as well. United Wholesale Mortgage is a mortgage lender associated with mortgage brokers and financial institutions that offer home purchase loans.
The announcement of the company, which went public in January with the largest SPAC offering in history, was made by its CEO Mat Ishbia on Monday when reporting the company’s second-quarter results.
"We have assessed the viability and we hope to be the first mortgage company in the United States to accept cryptocurrencies to meet mortgage payments,"
"That is something that we have been working on and we are excited that hopefully in the third quarter, we can execute it before anyone else in the country because we are leaders in technology and innovation."
In statements to CNBC, he confirmed that UWM, the second largest lender in the US after Quicken, will accept payments in Bitcoin but is also evaluating accepting other cryptocurrencies, including Ether.
The CEO of UWM said on his Twitter account that the company is always “looking for new technologies to facilitate mortgages for our broker partners and their clients.” He followed this with a tweet from the company’s account that stated,
"We are evaluating the feasibility and requirements to accept cryptocurrencies to meet mortgage payments".
On The Flipside
- We will soon see whether UWM decides to keep BTC as an asset on their balance sheets or immediately switch back to fiat currencies.
Why You Should Care?
The acceptance of BTC by the US mortgage lending giant comes at a time when cryptocurrency faces the biggest regulatory advance in the country; right after its inclusion in the Senate Infrastructure bill.