United Wholesale Mortgage (UWM), a major US mortgage provider, has stopped allowing customers to pay in cryptocurrency. The reason? “Regulatory uncertainty” in this industry.
Change of Heart
United Wholesale Mortgage, a Michigan-based wholesale lender, announced in August that clients could now pay for their home loans using Bitcoin. It became the first major US mortgage lender with digital assets as a payment option. It added Dogecoin and Ethereum to its options later.
Mat Ishbia, President and CEO of UWM, stated back then that “we’re proud to have been the first mortgage lender successfully pilot this technology”
CNBC reports that UWM suspended its cryptocurrency offerings after just two months. Ishbia stated that the customer demand during this period was not at the required level, as only one mortgage payment was made in September, and five in October. These payments were settled in crypto.
“There wasn’t enough demand at the end to push the envelope too far.”
Another reason the firm has stopped accepting cryptocurrencies as payment is their lack of regulation.
Ishbia stated that “Due to the current mixture of incremental costs in the crypto space and regulatory uncertainty, we have concluded that we won’t be extending beyond the pilot at the moment.”
The executive stated that his company would continue to follow developments in the space of digital assets. UWM could provide such a payment option if crypto becomes more mainstream, he said.
Mat Ishbia, Source: uwm.com
Crypto Legislation: Is it urgent?
Many experts called for regulations to be implemented by the US financial watchdogs on the digital asset sector, but others said that it should remain as it is.
This is Elon Musk’s opinion. Tesla’s CEO, Elon Musk, advised the American government last month not to regulate cryptocurrency because they could be hindered by the authorities. He said that it would be best to do nothing.
“I would say do nothing. “Let it fly!” I’d actually rather say that.
The crypto community is still waiting for more regulatory developments from different watchdogs. However, US officials have offered encouraging news. Jerome Powell, Fed Chair, and Gary Gensler, Chief of the SEC, recently assured that the US has no plans to ban digital assets but will only regulate them.
Marla Brooks – Financial Analysis
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