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)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind.
Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal.
Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances.
While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.