Configuring United Wholesale Mortgage for Cryptocurrency Payments

0
45

[ad_1]

Customers serving United Wholesale Mortgage can make monthly payments in digital currency, Chairman and CEO Matt Ishbia said in the company’s third quarter income statement.

“We have assessed the feasibility and hope to be the first mortgage company in America to accept cryptocurrency for mortgage payments,” Ishbia said. “This is what we have been working on, and we are very pleased that in the third quarter we will be able to implement this before anyone else in the country, because we are a leader in technology and innovation.”

The United States lags behind other countries when it comes to this type of digital payments. For example, in July, Spain introduced a bill that authorize mortgage payments made in cryptocurrency.

Ishbia did not discuss during the teleconference what type of cryptocurrency UWM would accept, given that the project is still in its early stages. But in a published report, he said there will probably be bitcoin first, plus the company is looking into others as well.

Referring to the company’s second-quarter results, he noted that changing the volume of purchases, rather than the structure of the underlying stock, is how investors should value a mortgage company.

“It is important to know that the procurement structure can only change due to less refinancing, and this is really not the story that we are trying to tell, we are trying to talk about the strength of our business,” Ishbia said.

This is why the second quarter, when the average mortgage rate rose to 2.99% from 2.8%, was a glimpse into the future. “So the rate hike was only 19 basis points, and you would have thought the entire industry would stop, judging by the way a lot of people reacted,” Ishbia said. “Wait until it drops from 2.99% to 4% and you see the strength of our business across the board.”

Even though UWM’s second-quarter sales margin was total 81 basis points, its initial cost is 43 bp. “This is essentially a low all-time margin,” he said. “We are going to continue to benefit from our costs, and we can continue to put pressure on all of our competitors.”

In the third quarter, UWM expects to receive $ 52 billion to $ 57 billion in total, with a margin of 75 to 100 basis points.

UWM brought first class large mortgage returned to its product range in March and averaged around $ 2 billion per month during the second quarter.

“The good news,” he added, was that purchases of this product accounted for more than half of the $ 3.2 billion total, compared to $ 2.7 billion for distillation.

Jumbo’s products also contributed to the company’s second-quarter interest income, which rose to $ 79.2 million from $ 45.9 million in the prior fiscal period.



[ad_2]

Source link