Homeowners are set to have another option when it comes to paying their mortgage, with United Wholesale Mortgage, the second-largest mortgage lender in the US, announcing plans to start accepting cryptocurrencies, more specifically Bitcoin, for home loan payments.
The news is a first for the mortgage industry in the US. The announcement comes barely weeks after the mortgage lending giant made its public debut, back in January.
Accepting Bitcoin In Q3
United Wholesale Mortgage plans to start accepting Bitcoin by the third quarter of the financial year and is also considering adding other cryptocurrencies such as Ethereum. Mat Ishbia, CEO of United Wholesale Mortgage, stated,
“We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments. That’s something that we’ve been working on, and we’re excited that hopefully, in Q3, we can actually execute on that before anyone in the country because we are a leader in technology and innovation. We are evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments.”
United Wholesale Mortgage is the second-largest mortgage lender in the US after Quicken. The mortgage giant works solely through wholesale channels, employing a fleet of brokers that connect clients to home loans based on their individual requirements.
Exploring Cryptocurrencies Amid Heightened Scrutiny
United Wholesale Mortgage is exploring the cryptocurrency space at a time when cryptocurrencies are under increased scrutiny in the US. The $1 Trillion infrastructure bill contains several measures and revamped tax rules that aim to increase tax compliance regarding cryptocurrencies and crypto-assets.
Increasingly Under Fire
Cryptocurrencies have come increasingly under fire by the government, with plans to step up tax enforcement around cryptocurrencies as a way to raise additional funds for the infrastructure bill. Cryptocurrency exchanges will have to provide all relevant details about cryptocurrency transactions that are equal to or more than $10,000 to the IRS. The Securities and Exchange Commission Chairman and Gary Gensler, and Federal Reserve Chair Jerome Powell have all talked about the regulation of cryptocurrencies.
It is also unclear where or how United Wholesale Mortgage will hold the Bitcoin that it accepts as mortgage payment or convert the crypto into fiat currency when completing the transaction.