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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.