Mortgage the future, literally, with Bitcoin

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It is well known that, depending on the use case, cryptos are making strides in mainstream commerce. On the retail side of the equation, we’ve seen announcements from companies like PayPal and Tesla that they have brought or will bring acceptance of bitcoin into the mix.

PayPal, for example, said crypto could be spent around the world by tens of millions of merchants.

See Also: PayPal Becomes Latest Big Tech Company To Jump On Crypto Band

And, as of this week, we were seeing indications that bitcoin would be accepted, at least in some quarters, for payments related to some of the more expensive items: namely mortgages.

As reported by media outlets, including CoinDesk, United Wholesale Mortgage will look to accept crypto for payments, with the goal of having this feature in place by the end of the year. On a conference call with analysts discussing second quarter results, management said the company would be the first mortgage lender in the country to start accepting crypto for mortgage payments.

Walk before you run

Separately, in an interview with the Detroit Free Press, CEO Mat Ishbia gave a few more details on the roadmap that may be ahead. I think we were starting with bitcoin, but looking at Ethereum and others, ”Ishbia said. “We were going to walk before we run, that’s the plan. Obviously, there is no guarantee that some details were still working.

The plans were announced in a quarter that saw mortgage volume for the company at $ 59.2 billion in the quarter.

The mechanics of bitcoin mortgage payments have not yet been disclosed. Could this be a process where bitcoin is converted to fiat, which is then used to make a payment? Is there an option to choose to make a transaction / payment using traditional bank accounts one month and then revert to bitcoin payment the following month? Would the mortgage lender keep bitcoins on their own balance sheet if a transaction were to be settled directly into that crypto? All of these questions, of course, relate to how stakeholders would explain the volatility inherent in cryptos themselves, how they affect the value of a transaction, and the impact on a lender’s balance sheet.

There is at least precedent for the use of cryptos in the mortgage business. As reported earlier this month, the Partido Popular (PP), a Spanish political party, introduced a bill that would, among other things, allow consumers to pay their mortgages with crypto. Additionally, investors could use crypto when investing in mortgage pools.

The reports come as consumers increasingly look to use crypto in their daily spending. Up to 60% of consumers surveyed by PYMNTS recently want to make purchases using cryptocurrencies, and more than half of those surveyed would like to use digital offers to make large purchases rather than just cash out their holdings.

See also: Report: Almost 60% of Consumers Want to Buy Stuff with Crypto

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NEW PYMNTS DATA: 58% OF MULTINATIONAL COMPANIES USE CRYPTO-CURRENCY

By the way: Despite price volatility and regulatory uncertainty, a new study from PYMNTS shows that 58% of multinational companies are already using at least one form of cryptocurrency, especially when transferring funds across borders. The new Cryptocurrency, Blockchain and Global Business survey, a PYMNTS and Circle collaboration, polling 500 executives examines the potential and pitfalls that crypto faces as it becomes part of the mainstream financial sector.

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