Second-largest U.S. mortgage lender will accept payment in bitcoin

Discussion in 'Crypto Assets' started by johnarb, Aug 20, 2021.

  1. johnarb

    johnarb

    https://www.cnbc.com/2021/08/19/uni...will-accept-bitcoin-other-cryptocurrency.html

    Second-largest U.S. mortgage lender will accept payment in bitcoin
    PUBLISHED THU, AUG 19 20216:58 PM EDT

    MacKenzie Sigalos@KENZIESIGALOS
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    KEY POINTS
    • United Wholesale Mortgage announced plans this week to accept cryptocurrency for home loans, in an apparent first for the national mortgage industry.
    • The company hopes to start accepting bitcoin in Q3, and it is currently weighing other digital currencies like ether.
    In this article

    [​IMG]

    Tony Andrews | Twenty20
    Starting later this year, U.S. homebuyers will have the option to pay for their mortgage in bitcoin.

    United Wholesale Mortgage, which made its public debut in January via a special purpose acquisition (SPAC) merger, announced plans this week to accept cryptocurrency for home loans, in what is being billed as afirst for the national mortgage industry.

    “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,” CEO Mat Ishbia said in the company’s second quarter earnings call on Monday.

    “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.”

    The Michigan-based mortgage company confirmed to CNBC that it’s aiming to start by accepting bitcoin, though UWM is in the process of evaluating ether and other cryptocurrencies as well.

    “We are evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments,” said Ishbia in a tweet via the company’s account.

    UWM – the nation’s second-biggest mortgage lender after Quicken, the Detroit-based lending giant owned by Rocket Companies – works solely through wholesale channels, meaning that the company employs a fleet of brokers who then connect clients to home loans.

    The push into decentralized digital money comes at a time of heightened scrutiny of crypto from all sides in the U.S.

    Revamped crypto tax rules are a part of the $1 trillion infrastructure bill, and financial authorities like Treasury Secretary Janet Yellen, SEC Chair Gary Gensler, and Fed Chief Jerome Powell have all spoken recently on the topic of whether to regulate cryptocurrency.

    It is unclear is whether UWM will hold the cryptocurrency it accepts or convert it to fiat at the point of transaction. The company did not immediately get back to CNBC with that information.
     
  2. Is it a "big deal" to accept BTC for home payment? Couldn't the coiner convert his coin to $USD and pay for the house??
     
  3. Baron

    Baron Administrator

    It's so amazing to see all these banks and financial institutions jumping on the bitcoin train all after they were so negative on BTC just one year ago. It's like they woke up from some foggy haze and now "get it" all of a sudden.

    But with that said, I don't know why anyone on earth would want to take their $1 Million dollars in bitcoin and sell it to pay off a mortgage. It's like saying "I'm going to take my $1 Million in BTC that's been appreciating 200% a year and then use it to pay off the $700k
    mortgage on my house that's costing me 3% interest per year, and then the other $300k goes to the IRS."
     
    Last edited: Aug 20, 2021
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  4. Baron

    Baron Administrator

    Sure, he could convert his BTC to USD, and then wire the USD to the bank for the payoff, but why do it that way if you could just send the BTC direct to the bank and the payoff happen within an hour?
     
    johnarb likes this.
  5. True that, but it's just a convenience. That shouldn't sway the home purchase decision.
     
  6. destriero

    destriero

    They had a shit quarter and are trying to boost the shares prior to 10b5 sales.
     
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  7. johnarb

    johnarb

    Nah, it's not a big deal that UWM will be accepting bitcoin for payments. It's a marketing ploy (for UWM), imho. and I do not think many bitcoiners will take advantage of this payment option due to tax implications and reporting burden

    But, make no mistake, the message of continued adoption is a big deal. CNBC headline, after all

    PayPal, Visa, Mastercard, Square, Apple Pay (via Coinbase integration) and Google Pay (via Coinbase as well) are big deals for payments utilizing bitcoin and cryptos

    Remember, each and every news is an important message. Adoption. Acceptance. We have over 50 million people in the US who own bitcoin/cryptos, but many ETers are still waiting for this tulip and bubble to pop and never recover

    JP Morgan, Morgan Stanley, State Street, Wells Fargo, Goldman Sachs, Fidelity, Bank of New York and other big banks are offering bitcoin to their HNW clients

    Adoption. Bitcoin/cryptos adoption is expected to be 1B users in the next few years. If you're not interested in the technology, think of what the price will be when that adoption is realized
     
    Baron likes this.
  8. Even the Federal Government. They recognize it as a source of tax revenue.
     
  9. johnarb

    johnarb

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  10. The message is clear: Bitcoin is for real and is being accepted in various industries and countries. This step by United Wholesale Mortgage is going to add more value to bitcoin's price and its blockchain technology. People who call it a scam or ponzi scheme, it's time they realize BTC’s potential.
     
    #10     Sep 7, 2021
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