Second-largest mortgage lender UWM to take Bitcoin by year end
By Robert Davis
19:50, 24 August 2021
By the end of the year, United Wholesale Mortgage (UWM), America’s second-largest mortgage lender, will begin accepting one or more cryptocurrencies as payments for home loans.
The company announced last week it plans to accept Bitcoin but is also looking into Ethereum and other cryptocurrencies.
Capital.com reached out to UWM about whether it would hold the digital currency or convert it into fiat currency, but the company did not immediately reply.
The news caused Bitcoin to resurface above $50,000 on Monday before sinking again on Tuesday.
UWM’s shares traded slightly higher on Tuesday, reaching $7.50 per share.
Business growth
During its earnings call last week, UWM said it saw a record volume of mortgage business in Q2 which ended 30 June. However, the growth in business caused a precipitous drop in UWM’s profitability.
According to the company’s earnings statement, its net income during Q2 was $187m, down from $860m in Q1.
Despite this, UWM was still able to close more than $59bn in mortgages during Q2, according to the earnings statement.
Mat Ishbia, UWM’s chief executive officer, said in the statement the earnings are proof the company is built to perform, “not only when there is a (refinance) boom and margins are at record highs, but also when margins are compressed, and purchase business drives the volume.”