Mentioned:
Opendoor has a new ambition: mortgages.
What’s happening:
- Opendoor (NASDAQ: OPEN) has officially launched their Opendoor Home Loans out of beta
Why it matters:
- Opendoor Home Loans charges zero lender fees or origination fees and pays the discount points on its own listings to offer a rate below market to potential buyers
Going deeper:
- Opendoor Home Loans is licensed in 16 states including Arizona, Colorado, Texas, Oregon, Wyoming and Montana
- The launch of Opendoor Home Loans comes roughly 6 months after Opendoor publicly stated that the product had entered into beta testing
- Opendoor has been deepening their bet on mortgages as a way to expand their platform lately, including previously notably acquiring mortgage rate comparison platform HomeBuyer
The intrigue:
- Opendoor just recently made waves on Wall Street when they raised $650M USD of convertible senior notes and completed their first ever share buyback
The fine print:
- Opendoor previously launched a mortgage product more than 6 years ago, prior to ultimately winding it down due to rising interest rates and other challenges with their existing inventory of houses
