United Wholesale Mortgage To Accept Bitcoin This Year

[DaveF]

Was announced a couple of days ago but I have not seen it discussed here yet. If it was I'll lock this post.

https://cointelegraph.com/news/second-largest-us-mortgage-lender-will-accept-crypto-payments-this-year
https://www.cnbc.com/2021/08/19/united-wholesale-mortgage-will-accept-bitcoin-other-cryptocurrency.html

There are many other links out there if you want to give a search.
Going to be interesting to see how it pans out, and how they handle the transactions and what they really do with the coins in terms of keeping or selling them.

-Dave

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[Jawhead999]

Speaking with the Detroit Free Press on Monday, Ishbia said that the move would likely happen later this quarter, or at the start of Q4, adding, “I think we’re starting with Bitcoin, but we’re looking at Ethereum and others.”

"We’re going to walk before we run, but at the same time, we are definitely a leader in technology and innovation and we are always trying to be the best and the leader in everything we do.”

“That’s the plan. Obliviously there’s no guarantees — we’re still working through some details,” the CEO added.

Based on this statement it's still a plan and he actually want to accept other centralized or even fully centralized crypto, accepting Bitcoin it just as a start and hype to their company. Assuming they already accept Bitcoin, I think they will do same with other companies that convert Bitcoin to Fiat using BitPay. However since it's mortgage companies it's not a bad idea to keep Bitcoin since they could get double interest by lending and volatility.

[InvoKing]

Sometimes it is hard to know whether a topic should be posted in the Press section or kept in the Bitcoin Discussion? for discussing what exactly?
Good news. That's all what I can say.

[fiulpro]

Bitcoins have already been used for several times to make payments for purchasing properties but timely mortgage payments?? It would be something that should be thoroughly planned and executed as well. The company mentioned above does want to execute the same but they have still not made any promises and therefore I do think that we might have to wait for few months before we can see any changes. They can also use smart contracts as well in the same and it would further make it more secure and upto the mark. I do think that it would be a great idea because bitcoins would work well in heavy transactions, the key would be keeping it profitable.

[avikz]

Was announced a couple of days ago but I have not seen it discussed here yet. If it was I'll lock this post.

https://cointelegraph.com/news/second-largest-us-mortgage-lender-will-accept-crypto-payments-this-year
https://www.cnbc.com/2021/08/19/united-wholesale-mortgage-will-accept-bitcoin-other-cryptocurrency.html

There are many other links out there if you want to give a search.
Going to be interesting to see how it pans out, and how they handle the transactions and what they really do with the coins in terms of keeping or selling them.

-Dave

That's quite interesting! Because US housing market is slowly forming a bubble now. So it's interesting to see how this company is going to use this coins or do they want to keep it for the unforeseen times. There have been a lot of talks ongoing regarding a possible market crash so I belive this is a plan B for the United Wholesale Mortgage.

It's probably triggered out of their own forecast of business and from the evaluation of the market and its future possibilities. Quite good for the market.

[tranthidung]

That's quite interesting! Because US housing market is slowly forming a bubble now. So it's interesting to see how this company is going to use this coins or do they want to keep it for the unforeseen times. There have been a lot of talks ongoing regarding a possible market crash so I belive this is a plan B for the United Wholesale Mortgage.

It's probably triggered out of their own forecast of business and from the evaluation of the market and its future possibilities. Quite good for the market.

They have to make good reserve for case Bitcoin has crashes. I am fully aware that in long run, Bitcoin is very bullish but as a company, they have to get big reserve, just in case something goes wrong, not only with Bitcoin but other things with their company as well.

In long run, crashes today can become very minor changes on price chart a few years later but short term, such crashes are terrible for people who involve with and don't have plan B for expenses, operational cost, reserve, etc.

[DaveF]

1st off my bad for not commenting earlier but back in October they backed off taking bitcoin:

https://www.cnbc.com/2021/10/14/united-wholesale-mortgage-ditches-its-plan-to-accept-bitcoin-ethereum.html

I think this quote from the above link sums it up nicely:

It’s the latest evidence that many cryptocurrency users are treating it as an investment rather than a replacement for money.

No to mention for the US you have the tax implications when you sell so if are making your mortgage payment with BTC then you are adding to your tax burden (if you are selling above what you paid for it)
And, just as a thought, if you are living on crypto so to speak, and you see a spike in BTC price you may be better off selling on Coinbase^* or the like sending the $ to your checking account and paying your bill from there. This way if you want to sell NOW when you think the price is good, you don't have to deal with the mortgage company.


-Dave

^* Not going to get into the lack of privacy / anonymity of Coinbase and other places. You were going to pay your mortgage with BTC they know who you are and where you live :-)

[aoluain]

It was a nice idea especially for people who earn purely in Bitcoin and are customers
of that mortgage company but the TAX implication in the US is a killer.

I wonder if they were themselves looking to get into Bitcoin or was it purely as
service for existing and future customers?

[CryptoWebDirectory]

I don't know how many people will use Bitcoin to buy a house, but Musk did it with Tesla's at one time, so why not let a mortgage company start accepting it for houses as well. Anytime a new company decides to accept Bitcoin (or any other crypto) I see it as a good thing because it furthers global adoption. Just wait till these mortgage companies actually learn what a smart contract is and what power it has...

[flip4flop]

I don't know how many people will use Bitcoin to buy a house, but Musk did it with Tesla's at one time, so why not let a mortgage company start accepting it for houses as well. Anytime a new company decides to accept Bitcoin (or any other crypto) I see it as a good thing because it furthers global adoption. Just wait till these mortgage companies actually learn what a smart contract is and what power it has...

This was an old post from August and they have since ceased with the acceptance of BTC as a form of payment. Seems like this was just another short term marketing stunt or an accounting team who didnt quite realize that our system is not set up to accurately track these types of payments and exposes the bottom line to a ton of additional risk that only the strongest companies would be bold enough to take on, UWMC is not one of them.

[stompix]

1st off my bad for not commenting earlier but back in October they backed off taking bitcoin:
https://www.cnbc.com/2021/10/14/united-wholesale-mortgage-ditches-its-plan-to-accept-bitcoin-ethereum.html

Well, I was going to be a bit pissed off about them before reading the article and seeing:

The Michigan-based mortgage company tried three different types of crypto – bitcoin, ether, and dogecoin – and multiple different borrowers to see how the process would work. UWM successfully accepted its first-ever cryptocurrency mortgage payment in September and five more in October.But ultimately, the demand wasn’t there. Ishbia tells CNBC that borrowers “liked it” and “said it was cool” but having the option to transact in crypto “wasn’t a driver.”

So it's not like they've ditched bitcoin they've ditched crypto at that point because what a surprise everyone treats crypto as an investment, nothing new. But the obvious question, what happened between October and December to make them think now it would be different?

Just wait till these mortgage companies actually learn what a smart contract is and what power it has...

Wait till everyone learns that a smart contract has no power when it comes to local laws, that is going to be one hell of a revelation day for some.