The U.S. senate and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra are taking a closer look into the practices of home-flipping companies, such as HomeVestors. This initiative is in response to rising concerns that house-flipping companies are creating instability in local housing markets and contributing to gentrification.
Home-flipping companies are a relatively new business model, which often involves buying distressed homes, quickly renovating them, and then selling them for a sizeable profit; sometimes at the expense of the original owners. Senators, CFPB and Director Chopra are concerned that this business model may be contributing to housing insecurity and inflation of prices due to gentrification in key housing markets.
Key Points:
• U.S Senate and CFPB Director Chopra are focusing on house-flipping companies, specifically HomeVestors
• Recent concern that house-flipping companies are causing instability in local housing markets and driving gentrification
• Business model involves buying distressed homes, then quickly renovating and reselling for more money, sometimes at the expense of the original owner
• Senators, CFPB and Director Chopra are concerned that this business model may be creating housing insecurity and price inflation due to gentrification in key markets.
You can read this full article at: https://www.housingwire.com/articles/cfpb-senators-pledge-to-look-at-house-flipping-business-practices/(subscription required)
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