United Wholesale Mortgage Company in the US has revealed its proposal through which the lending company wishes to accept Bitcoin as a mode of payment. The company plans to receive mortgage installments from its customers even in the form of Bitcoin if they so desire. However, crypto integration is proposed to take effect at the start of October 2021. It is likely that the company might also induct Ethereum along with Bitcoin as an alternate payment option.
United Wholesale Mortgage (UWM) is one of the leading mortgage companies in the US. It is currently ranked at number 2 in the US
The company has made an announcement in which UWM has revealed its wish to integrate Bitcoin for the purpose of payment. It has been informed that possibly the integration of Bitcoin will take effect in the month of October 2021. Upon integration of Bitcoin, the company will examine the feedback on the basis of which further integrations of other coins can be undertaken. For instance, the company revealed that if the initiative of Bitcoin integration goes well, then it would like to add Ethereum alongside Bitcoin.
Mat Ishbia, UWM’s CEO, commented that they have thoroughly examined the feasibility of introducing crypto as a payment mechanism. He told that it is the wish of UWM to become the first mortgage company in the US accepting Bitcoin as payment.
He also told that decision for adopting Bitcoin was a thoughtful decision. Since UWM is the second-biggest mortgage company in the US therefore it has millions of clients who have obtained mortgage loans. Within these customers, UWM has crypto owners and they have been requesting UWM to allow them to pay in crypto.
The business model of UWM is not the same as that of a usual mortgage company. Though UWM provides mortgage facilities by extending loans and receive documents in return, it doesn’t get involved directly. Instead, it has engaged brokers which work directly under the instructions of UWM. These brokerage companies then engage with the mortgage seekers, prepare their cases and then put them up with UWM. However, the installments of the mortgage facilities are directly deposited by the mortgagees with UWM.
With UWM entering the crypto market, it is likely that other companies of its kind too will step in. Crypto adoption by mortgage lending companies is a great convenience for customers who want to utilize their crypto funds. There are definitely benefits for both sides i.e. the lender as well as the mortgagee. While crypto values are skyrocketing, the customers and UWM will be able to earn profits over and above their due payments.
This also shows how quickly crypto is getting into the mainstream financial system in the US. Yet, the only thing which could affect this adoption is the possibility of crypto regulation.