Major US mortgage company, United Wholesale Mortgage, revealed its plans to accept Bitcoin as mortgage payments in its Q2 earnings call. UWM is the second-largest mortgage lender in the United States with a loan volume of $59.2 billion in the first quarter.
By integrating Bitcoin and other cryptocurrencies, it would become the first country-wide mortgage lender to do so. During the earnings call, UWM CEO Mat Ishbia said:
“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.”
The company has not provided details on which cryptocurrency payment service provider it would avail. Ishbia told the newspaper that they are starting with Bitcoin and may later integrate Ethereum and other cryptocurrencies as well. He said:
“We’re going to walk before we run, but at the same time, we are definitely a leader in technology and innovation and we are always trying to be the best and the leader in everything we do.”
He noted in a Twitter post that they have been “evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments”.
There were no such cases of cryptocurrency mortgage payments in the United States before the company’s announcement.
On the other hand, a similar bill has been submitted by the opposition party in Spain to allow payments of mortgages via cryptocurrencies. If passed, the real estate sector would be able to use crypto to invest in mortgage pools as well.
The bill would also allow banks to use blockchain as a system to manage mortgages and insurance. Regarding the tax provisions, cryptocurrency users would be subjected to the same tax regulations as monetary transactions involving the exchange of goods and services.