October 08, 2020

Opendoor public filing shows company under FTC investigation

7 minutes

In today’s Daily Download episode, HousingWire covers a report that claims not only has Opendoor officially filed to go public, but the company is also under investigation by the Federal Trade Commission over its advertising practices.

For some background on the story, here’s a summary of the article:

Opendoor has officially filed its announcement to go public after announcing its merger with Social Capital Hedosophia Holdings Corp. II in September. But the filing also revealed that Opendoor is under investigation by the Federal Trade Commission over its advertising practices.

According to the filing, Opendoor in 2019 received a civil investigative demand.

“In August 2019, the FTC sent a civil investigative demand (CID) to Opendoor seeking documents and information relating primarily to statements in the company’s advertising and website comparing Opendoor’s offers to purchase homes to selling in a traditional manner using an agent and statements pertaining to Opendoor’s offers reflecting or being based on market prices,” the filing said.

Inman first reported on the investigation, which was disclosed in the company’s S-4 statement. As of Oct. 1, the investigation is ongoing, the filing says.

Following the main story, HousingWire covers a report from the Mortgage Bankers Association that shows mortgage applications almost completely rebounded last week by climbing 4.6%, and a breakdown of what former Vice President Joe Biden’s first-time homebuyer tax credit looks like in the era of COVID-19.

The Daily Download examines the most compelling articles reported from the HousingWire newsroom every day. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. This podcast is hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.

HousingWire articles covered in this episode:

Opendoor discloses that it's under federal investigation

Mortgage applications rise 4.6%

Biden's first-time homebuyer tax credit in the age of COVID-19

...more