UWM is not ready to fully engage in cryptocurrency payments
United Wholesale Mortgages is testing the waters with cryptocurrency, announcing today that it accepted its very first cryptocurrency mortgage payment in September.
According to UWM, five more cryptocurrency mortgage payments were assessed and accepted in October.
The Pontiac-based wholesale mortgage lender said the transactions were being used as models to “better assess the evolution of cryptocurrency payments for consumers.” But don’t expect UWM to board the crypto train just yet.
Mat Ishbia, President and CEO of UWM, said that by launching the pilot, the company is looking to “[innovate] for the long term. However, due to “additional costs and regulatory uncertainty in the crypto space”, the lender has decided to keep this initiative in a pilot phase for now.
“As we said in the last quarter, we were going to consider accepting the cryptocurrency and testing it to see if it’s a faster, easier and cheaper solution and thanks to members of our innovative technology team, the transactions were successful, ”Ishbia said.
The lender noted that the “testing and learning process” helped the company become the first to complete this type of transaction and once the crypto was successful. regulatory obstacles, it will be used to “propel the organization forward”.
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“UWM will continue to monitor cryptocurrency, the use of blockchain technology and future use opportunities,” the company added.
The universe of cryptocurrency is worth over $ 2.4 trillion since Wednesday, has made the world of finance talk this year. Some investors have even questioned whether crypto should become its own asset class. Nonetheless, lack of regulatory clarity and fears of volatility have prevented the currency from fully integrating into the financial services space.
Additionally, the lender said in its press release that its technological innovations are underway and were highlighted by the most recent launch of BOLT, an underwriting system announced in late September.
Ishbia added that the platform “[changes] mortgage gambling significantly in the future.
“Our team of nearly 1,200 technology experts will continue to develop elite, state-of-the-art tools that will help independent mortgage brokers win,” he said.
Bolt offers the ability to get initial approval for a qualified borrower in just 15 minutes, an “end-to-end online mortgage experience without wet signing of documents,” the lender claims.
In August, Mike Cagney directed Miniatures technologies and Homebridge Financial Services announced that they would merge. Essentially, the merger represents a proof of concept for blockchain technology – which underpins cryptography – when it comes to mortgages.
Figure and Homebridge are betting that in a few years the blockchain will create efficiencies that will allow them to grow well beyond the level of the top 30 mortgage lenders they currently operate in.
In the long run, blockchain technology would allow Homebridge and Figure to instantly manage mortgage transactions through cryptocurrencies. Instead of transferring dollars to escrow accounts, one could use a token that has a value, say 30 Bitcoins, for example, and have instant liquidity from player to player.