United Wholesale Mortgage (UWM), one of the largest wholesale and purchase lenders in the United States, is ditching Bitcoin payments plans after running a test. UWM officially announced Thursday that the company has successfully conducted its first-ever cryptocurrency mortgage pilot, accepting five crypto payments in October and one in September. The company has decided not to go ahead with the bitcoin payments.
The company cited associated issues such as regulation for not adopting bitcoin.
UMW did not disclose more information about the test, neither specifying what cryptocurrencies were part of the pilot nor what companies have assisted the firm in completing it. “We’re proud to be the first mortgage lender to successfully pilot this technology and further demonstrate that we’re innovating for the long term,” UWM CEO Mat Ishbia stated. Despite running the test successfully, the mortgage company has decided to stay away from Bitcoin payments, citing associated issues such as regulation: “Due to the current combination of incremental costs and regulatory uncertainty in the Crypto space we’ve concluded we aren’t going to extend beyond a pilot at this time.”
UWM noted that the pilot process has helped the firm learn about crypto payment transactions.
UWM noted that the pilot process has helped the firm learn about crypto payment transactions and prepared the company to make it available “once cryptocurrency transactions become something that will propel the organization forward.” The firm also noted that the lender would continue monitoring developments in the crypto and blockchain industry for potential use in the future.
UWM broke the news on its plans to experiment with crypto mortgage payments in August, looking to test mortgage payments in cryptocurrencies like Bitcoin and Ether.