Second-Biggest Mortgage Provider in US Stops Accepting Crypto Payments

United Wholesale Mortgage’s announcement comes only about six weeks after it said it would begin offering a crypto payment option via a pilot program.

Oct 14, 2021 at 10:37 p.m. UTC
Updated Oct 15, 2021 at 1:37 p.m. UTC

United Wholesale Mortgage, the second-largest mortgage lender in the U.S., has stopped accepting cryptocurrency for home loans, the company said on Thursday.

  • In August, the company said it would start offering the crypto payment option via a pilot program to gauge demand for this service. It was the first mortgage lender to do so.
  • “As we said last quarter, we were going to look into accepting cryptocurrency and test it to see if it’s a faster, easier and cheaper solution,” the company’s CEO, Mat Ishbia, said in a press release. “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.”
  • The Pontiac, Mich.-based company began trading on the New York Stock Exchange in January after a merger with Gores Holdings IV, a special purpose acquisition company (SPAC) at a $16.1 billion valuation for the combined entity.
  • United Wholesale Mortgage tried bitcoin, ether and dogecoin and worked with a number of different borrowers to evaluate the crypto lending process, according to CNBC. The network reported that only six homeowners participated in the program.

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