Major US mortgage lender drops Bitcoin payment plan

One of the largest US mortgage lenders, United Wholesale Mortgage (UMW), stopped accepting payments in crypto after running a successful test. Among the reasons, the company named regulatory uncertainty and associated costs.

UWM officially announced Thursday that it has successfully completed its first-ever cryptocurrency mortgage pilot, accepting five payments in crypto in October and one in September as well as testing Bitcoin, Dogecoin and Ethereum. However, despite the success of the test, the mortgage company decided to refrain from payments in cryptocurrency.

"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," stated in the press release.

UMW stressed that the testing experience helped prepare the organization for the implementation of digital assets. The company will re-integrate bitcoin payments when "cryptocurrency transactions become something that will propel the organization forward."

In a conversation with CNBC, the lender's CEO Mat Ishbia noted that there was no significant demand for such a service among clients.

Earlier, in mid-August, UMW announced that it would allow customers to pay mortgage fees using Bitcoin. The company wanted to study and test the new tool to determine if it was a faster, simpler, and cheaper solution.

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