The second-biggest mortgage provider in the entire United States of America, United Wholesale Mortgage, has said that it won’t accept cryptocurrencies as a mode of payment for its services, i.e., home loans.
This announcement was made on Thursday by the officials of the company. Back in the month of August, United Wholesale Mortgage had decided to put faith in cryptocurrencies and started accepting these digital assets as a mode of payment. This was due to the surge in popularity as well as the demand for cryptocurrencies.
United Wholesale Mortgage was the first mortgage firm to actually accept crypto payments, as Mat Ishbia, the CEO of the firm, made a historical statement a few weeks back,
“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.”
United Wholesale Mortgage puts the blame on regulatory uncertainty
There is a lot of uncertainty when it comes to cryptocurrencies and their involvement in the current monetary framework. While plenty of nations are involved with crypto adoption, few countries like China have started to protest this asset class. But, a majority of countries are still in the process of figuring things out.
United Wholesale Mortgage cited this uncertainty as to the reason why it has put a stop to accepting cryptocurrency payments. The CEO of the mortgage firm further added,
“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.”
Lack of participation?
Another reason for this move led by United Wholesale Mortgage includes the lack of participation from the general public. In a report by CNBC, as many as 6 homeowners decided to opt for cryptocurrency loans.
While the organization has spent the past few weeks actively looking to evaluate the crypto lending process it follows, not many people signed up for it in the first place.