The latest reports state that one of the biggest wholesale and purchase lenders in the United States, United Wholesale Mortgage (UWM), is abandoning Bitcoin (BTC) payment plans after running a market test.
UWM had previously said that it planned to test Ether and Bitcoin for mortgage payments in August 2021. On October 14, UWM officially announced that it had successfully done its first-ever crypto mortgage pilot. The firm accepted five cryptocurrency payments in October and one in September.
But, UWM did not disclose more information about its test. Also, it never specified what cryptos were part of the pilot or which companies helped in the test process. UWM CEO Mat Ishbia stated:
Buy Bitcoin Now“We’re proud to be the first mortgage lender to successfully pilot this technology and further demonstrate that we’re innovating for the long term.”
Although the company managed to run the test successfully, it has decided to stay away from Bitcoin payments. While offering the reason behind its decision to stay away, UWM cited associated issues including regulation:
“Due to the current combination of incremental costs and regulatory uncertainty in the Crypto space we’ve concluded we aren’t going to extend beyond a pilot at this time.”
UWM Concludes Crypto Payments Pilot
The mortgage company noted that the pilot process helped it learn about the world of crypto payment transactions. Also, it prepared the firm to make it available:
“once cryptocurrency transactions become something that will propel the organization forward.”
The company said that the lender would keep monitoring developments that happen in the blockchain and crypto sector for possible future use. UWM, the second-biggest mortgage lender in the US, published its plans to experiment with crypto mortgage payments in August.
At the time, the mortgage lender aimed to test mortgage payments in cryptos like Ether and Bitcoin. The firm announced its plans in partnership with UWM’s Q2 financial results. The company posted nearly $140 million in net profits. At the time of publication, UWM has not released its Q3 results.
