“We have evaluated the feasibility, and we are looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments.”– Mat Ishbia, CEO of United Wholesale Mortgage.
United Wholesale Mortgage, the second-largest mortgage lender in the US after Quicken, plans to begin accepting Bitcoin (BTC) by the third quarter of the financial year.
The news is a major one for the cryptocurrency space as a whole and a first for the mortgage industry in the United States – the announcement comes barely weeks after the mortgage lending giant made its public debut, back in January.
Bitcoin Payments Planned for Q3
“We are evaluating the feasibility and requirements (in order) to accept cryptocurrency to satisfy mortgage payments. We are 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.”
– Mat Ishbia, CEO of United Wholesale Mortgage
With plans to start accepting BTC by the third quarter of the financial year, United Wholesale Mortgage plans on adding other cryptocurrencies to their holdings, such as Ethereum (ETH) or Litecoin (LTC).
The mortgage giant works solely through wholesale channels, employing a fleet of brokers that connect clients to home loans based on their requirements. It is unclear where or how United Wholesale Mortgage will hold the BTC it accepts as payment upon completing the transaction.
Regulatory Compliance & Government Crackdowns
While cryptocurrencies have been falling victim to increased regulatory scrutiny by various global governing entities in recent months, United Wholesale Mortgage has made its intentions clear. With plans to step up tax enforcement around cryptocurrencies for the infrastructure bill.
Most notably, cryptocurrency exchanges will have to provide all relevant details about all transactions equal to or more than $10,000 to the IRS.
Continuing to explore the cryptocurrency space, taking the diplomatic approach, and looking for solutions to work with regulators says a lot about the confidence of United Wholesale Mortgage’s team behind a likelihood of the future where mortgages become payable with BTC and other digital crypto-assets.
Simply put, cryptocurrencies have come increasingly under fire by the government. In the United States, the recently passed $1 trillion infrastructure bill contains several measures and revamped tax rules that aim to increase tax compliance regarding cryptocurrencies and crypto-assets.
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