United Wholesale Mortgage has become the first national mortgage lending company to say “yes” to cryptocurrency for home loans. People can now purchase their dream homes with digital assets.
United Wholesale Mortgage Will Permit Home Payments in Crypto
Bitcoin and its crypto cousins were initially created as a means of pushing checks, credit cards, and fiat currencies to the side. They were designed to serve as payment methods, though things have ultimately gotten in the way of the journey, starting with their volatility, which has really slowed this goal to a screeching halt in recent years.
Bitcoin and other cryptocurrencies remain extremely vulnerable to price swings, which is why so many companies have refused to accept digital currency-based payments for goods and services in recent years. They are too worried about potentially losing profit, and to an extent, we can’t really blame them.
Let’s assume, for example, that a person walks into a store with $50 worth of bitcoin that they use to purchase various merchandise. The store in question does not transfer that digital currency into fiat right away, resulting in the money sitting in a digital wallet overnight. The next day, the price of bitcoin falls, causing that $50 to drop to about $40. The customer gets to walk away with everything they bought, but the store has ultimately lost money. It’s not entirely fair, and thus many companies do not want to put themselves in revenue-losing positions.
The idea of accepting crypto for home loans is quite risky given that most houses are anywhere between several hundred thousand to several million dollars. What if United Wholesale Mortgage accepts a crypto offer on a house and processes everything only to see that the crypto in question has gone down in price once it’s been accepted?
United Wholesale Mortgage isn’t concerning itself with this scenario and is trying to view the big picture. The company believes that digital currencies are the way of the future and will take the financial space in a unique and global direction. CEO Mat Ishbia stated in a recent interview:
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 quarter three, we can actually execute on that before anyone in the country because we are a leader in technology and innovation.
Starting with BTC
Regarding what cryptocurrencies will be accepted, Ishbia said:
I think we’re starting with bitcoin, but we’re looking at Ethereum and others. We’re going to walk before we run, but at the same time, we are certainly a leader in technology and innovation, and we are always trying to be the best and the leader in everything we do. That’s the plan.