Like many industries and businesses, the real estate industry has been hit with an unprecedented number of barriers amid the COVID-19 pandemic. However, as cryptocurrency adoption intensifies, more companies are starting to accept crypto as payment. Major nationwide mortgage lender United Wholesale Mortgage (UWM) announced that it will start accepting Bitcoin as payment by the end of this year.
With mortgage interest rates at all-time highs and a very thin market, many people wonder if homeownership is still in the cards for them, and rightfully so. For six consecutive years, UWM has been leading the nation as the number one mortgage lender. The company is expanding its payment options to accept Bitcoin and eventually other forms of cryptocurrencies. If these plans follow through, UWM will be the first major nationwide mortgage lender to offer such services.
UWM is excited to offer crypto options for mortgage payments before anyone else in the country.
UWM CEO Mat Ishbia takes pride in expressing that the company is at the forefront of innovation and technology. UWM as a wholesale lender provides a unique experience in offering mortgages. It's working exclusively with independent brokers across the country. UWM helps them provide much better experiences than that of a bank or retail mortgage lenders. UWM's top priority is to educate and promote why brokers are better than banks and to keep its clients satisfied. With many of UWM's clients holding crypto, according to Ishbia, this move seemed to be the natural progression.
In order to stay innovative and follow consumer trends, UWM aims to roll out the form of payment by the end of the third quarter or at the beginning of the fourth quarter. Joining entities like the Dallas Mavericks, AMC Theaters, and Paypal, UWM is following suit and adopting cryptocurrencies despite many people thinking that the mortgage business is far from innovative.
As a publicly traded company, many speculate what this news could impact the price of UWM stock. Although the stock is slightly down, will the news take a bit to settle in?
UWM might be the first mortgage lender to accept crypto, but it isn't the first in the world.
Expanding into international markets, Matrix Mortgage Global in Canada accepts cryptocurrencies as a form of payment. Accepting more than the popularly accepted BTC, Matrix Mortgage Global also takes Bitcoin Cash, Tether, and Ethereum. In utilizing cryptocurrencies as a form of payment, more companies are starting to realize the value of the transparency and efficiency in this form of payment. While regulatory concerns are different in every country, companies are starting to capitalize on the increased adoption of crypto.
UWM isn't concerned with volatility because all BTC will be converted into cash.
One of the biggest hesitations investors and institutions have with cryptocurrency is the volatility since the value is hardly stable. However, UWM doesn't intend to invest in crypto, according to Ishbia. Unlike many other companies that start to adopt cryptocurrencies for their own investing purposes, UWM plans to convert the BTC paid into cash to mitigate the inevitable volatility. Although UWM doesn't plan to invest in digital tokens, it isn't clear how the company will turn the BTC payments into fiat.
To start, UWM only plans to accept BTC as payment but intends to accept other altcoins in the future, like Ethereum and other cryptocurrencies. Having recently made this announcement, there are still unclear aspects regarding the mechanism and logistics of these payments and how users can sign-up for the payment option. With much left to unfold, innovative news of this kind will hopefully shed some light on those looking for home investing and searching for a wholesale lender.