US Mortgage Lender UWM Will No Longer Accept Bitcoin Payments

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United Wholesale Mortgage (UWM) – one of the largest providers of mortgage loans in the United States – has decided to no longer allow its customers to settle their payments in cryptocurrency, citing “regulatory uncertainty” in the industry.

Change of heart

In August, Michigan-based wholesale lender United Wholesale Mortgage announced that customers can pay home loans in Bitcoin and thus became the first major U.S. mortgage lender to adopt digital assets as a payment method. Later, he also added Ethereum and Dogecoin as options.

“We were proud to be the first mortgage lender to successfully pilot this technology and further demonstrate that it innovates over the long term,” said Mat Ishbia – President and CEO of UWM – at the time.

According to a CNBC report, however, UWM suspended its cryptocurrency offering after just two months. Ishbia revealed that during this period, customer demand was not at the necessary level as there was only one mortgage payment in September and another five in October settled in crypto:

“There wasn’t enough demand at the end of the day to really push the boundaries.”

The lack of a regulatory framework for cryptocurrencies is another reason the firm has stopped accepting them as a means of payment.

“Due to the current combination of additional costs and regulatory uncertainty in the crypto space, we have concluded that we are not going to expand beyond the pilot at this time,” Ishbia said.

Subsequently, the executive assured that his company would follow developments in the space of digital assets. If crypto “becomes more mainstream,” UWM could provide such a payment method again because they “know how to do it now,” he concluded.

Mat Ishbia, Source: uwm.com Is Crypto Legislation Urgent?

While many experts have urged U.S. financial watchdogs to implement regulations on the digital asset industry, some felt the situation should stay as it is.

This is the opinion of Elon Musk, for example. Last month, Tesla’s CEO advised the U.S. government not to regulate cryptocurrencies, otherwise the authorities could hamper their development. He went further, saying that doing nothing would be the best case:

“I would say, don’t do anything. I would actually say, let it fly.

As the crypto community awaits more regulatory developments from various watchdogs, U.S. officials have provided encouraging news. Fed Chairman Jerome Powell and SEC Chief Gary Gensler recently reassured that the country does not intend to ban digital assets, only to regulate them.

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