Bitcoin Mortgage Payments on Horizon for America’s Second Largest Lender

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United Wholesale Mortgage, the second largest mortgage lender in the United States, has announced plans to allow customers to make payments in bitcoin.

UWM CEO Mat Ishbia told MoneyWise that the company believes accepting cryptocurrency for monthly payments will increase convenience for some of its nearly one million customers.

UWM did not provide details on exactly how customers will make their crypto payments, but the lender hopes to be able to launch the service by the end of September.

In order to accept crypto payments, UWM will need to make some crucial decisions.

First, the price of Bitcoin in US dollars fluctuates every day (and different crypto exchanges often report different exchange rates), so UWM will have to decide who will provide their exchange rate data.

Second, the lender will have to decide whether they will accept the crypto and, if so, how to store it securely. If UWM decides not to accept crypto directly, it will likely select a third-party crypto exchange so that consumers can exchange their bitcoin for dollars.

Using crypto for mortgage payments will not only be complicated for lenders, but potentially for consumers as well.

For those who already hold bitcoin, mortgage payments might be easier to make when the price of bitcoin is high. However, the price of bitcoin has been historically volatile, fluctuating by thousands of dollars month to month and even day to day, which could make crypto unsuitable for paying a fixed monthly expense. like a mortgage.

UWM only plans to accept Bitcoin payments at this time, but is considering accepting Ethereum and other cryptos later.

Crypto mortgage payments are a relatively new idea. Toronto-based mortgage brokerage, Matrix Mortgage Global, announced it was accepting Bitcoin, Ethereum, and a handful of stablecoins in April.

Abroad, a bill drafted by the People’s Party in Spain proposed to legalize crypto payments in the real estate sector and mortgage payments, Cointelegraph reported earlier this month.

For more news, information, and strategy, visit Crypto Channel.

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