The second largest mortgage lender in the country United Wholesale Mortgage is backwards on its plans to accept cryptocurrency.
Despite being the first mortgage lender to successfully pilot this technology over the past two months, UWM doesn’t plan on continuing to offer cryptocurrency as a payment option due to its rising cost and volatility.
Due to the current combination of incremental costs and regulatory uncertainty in the Crypto space we have concluded we aren't going beyond a pilot at this time, CEO Mat Ishbia announced in a statement on Thursday.
At the time, He argued that UWM was not only looking into accepting Bitcoin, but was also interested in accepting Ethereum and other cryptocurrencies as well.
UWM began to pilot the technology to see if it's a quicker, easier and cheaper solution. The mortgage lender accepted its first cryptocurrency payments in September, followed by five more crypto payments from borrowers in October.
The transactions a first not only for UWM but for the entire industry were used as a model to better assess scaling cryptocurrency payments for consumers according to UWM.
Even though UWM has discontinued its prior plans, the company stated that this test-and- learn process will prepare UWM to make it available once cryptocurrency transactions become something that will propel the organization forward. UWM also said that it would continue to monitor cryptocurrency, the use of blockchain technology and opportunities for future use.