In today’s economic climate, more sellers are asking the same question: Is spending $20,000 to $40,000 on traditional home staging really necessary? For decades, preparing a listing meant renting furniture, hiring photographers and coordinating logistics — just to bring one property to market. Until recently, virtual staging wasn’t a true alternative — it was expensive, slow and often looked artificial. That changed with AI.
Enter Collov AI, a Silicon Valley-based startup that leverages proprietary model training to develop AI-powered tools for real estate professionals. Unlike traditional virtual staging, which often involves outsourcing to overseas designers, Collov AI’s solution delivers instant results with photorealistic quality and interactive editing — all without the friction of manual workflows.
Its AI stages rooms with precision — placing furniture that’s properly scaled and styled — while preserving the original architecture. No fake light fixtures, no awkward edits. Just clean, realistic design that helps buyers see a property’s full potential.
One standout feature is the ability to remove existing furniture. In cases where buyers couldn’t look past a home’s outdated style, Collov AI allowed users to present the same space with a fresh, modern look — completely shifting their perception. With tools like “Chat Edit,” agents can refine images using natural language prompts — swapping furniture styles, adjusting lighting, or changing flooring—all in seconds, no design skills required.
Internal analysis shows that listings staged through Collov AI receive significantly more engagement across digital platforms. In one case, a condo listing that had gone unnoticed saw a 72 percent spike in listing views and a 44 percent increase in qualified leads after virtual staging was applied.
Payton Stiewe, Real Estate Advisor at Engel & Völkers San Francisco, shared, “We’ve used Collov AI on multiple listings and buyer consultations. The turnaround is fast, the cost is a fraction of traditional staging, and in this market, it’s a smart, strategic move.” Samuel Yang, PREC* at Nu Stream Realty, added, “After two months of no offers, I added Collov AI’s stunning virtual staging photos — within one week, two offers came in!”
Collov AI isn’t just catering to agents — it’s also being used by developers, stagers and photographers across residential and commercial sectors. As real estate continues its digital evolution, tools like this are helping professionals move faster, reach wider audiences and tailor visual marketing to today’s buyer expectations.
To learn more about Collov AI and try the platform, visit collov.ai.
Markk Tong is the Founding Marketing and Sales Manager of Collov AI, a Silicon Valley-based startup using artificial intelligence to transform real estate marketing. With a background in design technology and experience working with top brokerages, he focuses on bridging AI innovation with real-world agent needs.
Virtual property tours have evolved from simple slideshows to immersive, high-tech experiences. Today, true 3D tours, like those powered by Matterport, are redefining how properties are showcased, leaving traditional 360 walkthroughs behind. But what makes a 3D tour truly three-dimensional, and why does it matter?
What Sets Real 3D Apart
Real 3D tours don’t just capture a space visually; they digitize it completely, allowing viewers to explore height, width and depth with precision. Unlike 360 walkthroughs — which rely on stitching flat, panoramic images together and lack spatial accuracy — true 3D tours use advanced infrared-equipped cameras or AI to measure and capture the physical environment. The result? Immersive, to-scale models that offer a seamless, lifelike experience of walking through a property.
Matterport takes this depth to the next level with its “digital twin” technology, recreating properties in precise detail. Even simple 360 cameras or smartphones can be used to produce 3D tours through their cutting-edge software, making this advanced capability widely accessible.
5 benefits of Matterport 3D tours
For real estate agents, real 3D tours present unmatched advantages across marketing, sales and client satisfaction.
1. Stand out with innovative marketing
Offering a 3D tour instantly elevates your listings. These tours make a strong first impression, driving engagement and expanding online visibility. Integrating Matterport’s high-quality digital experiences can even improve your SEO rankings, ensuring your properties get noticed by more buyers and sellers.
2. Generate more leads, sell faster
Matterport 3D tours consistently drive up to 300 percent more engagement compared to static photos. The immersive nature of these tours attracts buyers, increases inquiries and often results in faster sales.
3. Reach buyers anytime, anywhere
Whether your buyers are international investors or local families with packed schedules, Matterport tours provide around-the-clock access to properties. 3D tours allow buyers to thoroughly explore homes from anywhere, helping them make confident decisions faster.
4. Achieve higher selling prices
Data shows homes listed with 3D tours can sell for up to 9 percent more and close 31% faster. A true-to-life experience helps buyers connect emotionally, envision potential and feel comfortable making competitive offers.
5. Save valuable time
By enabling buyers to pre-qualify themselves, real 3D tours reduce time wasted on unsuitable showings. Agents and sellers can focus on serious buyers, streamlining the sales process and minimizing disruptions.
How to choose the right 3D tour
Not all “3D” tours are created equal. Here’s a quick checklist for evaluating tour providers to ensure you’re getting true 3D technology that delivers real value for your business:
Does the tour provide a seamless, smooth walkthrough experience?
Does it include advanced features like a dollhouse view and auto-defurnish?
Are assets like listing photos, floor plans and videos included?
Can the provider distribute tours to major platforms like Homes.com or the MLS?
Matterport checks all these boxes, pioneering the industry with its AI-powered 3D digital twins and user-friendly features.
Elevate your real estate marketing
Real 3D tours with Matterport don’t just showcase properties; they transform how buyers experience them. By offering immersive, accurate and cutting-edge tools, you’ll stay competitive and deliver exceptional value to clients.
Elevate your listings today — start with a free Matterport account and see how digital twins can revolutionize your marketing strategy.
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
Each week onTrending, digital marketer Jessi Healey dives into what’s buzzing in social media and why it matters for real estate professionals. From viral trends to platform changes, she’ll break it all down so you know what’s worth your time — and what’s not.
June is here, and brands are navigating familiar terrain with a new level of caution. From rainbow logos to ad placement strategies, what worked a few years ago may not always be effective in 2025. This continues to highlight a constant shift toward authenticity in both values and voice.
Whether it’s how you show up for Pride Month, experiment with Threads or use AI tools like ChatGPT in your workflow, remember: It’s not just what you do — it’s the how and the why that matter.
Pride Month and the evolving role of brands
This year’s Pride Month has brought a noticeable shift in how brands show up — or don’t.
Where rainbow logos and merch were once standard, now many companies are scaling back. Some are reacting to political pressure or consumer backlash, while others are reconsidering how to show support in more meaningful ways. This corporate retreat has sparked important conversations about authenticity, tokenism and how communities perceive performative allyship, especially during June.
What’s happening:
Companies pulling back:BarkBox was criticized after internal messages revealed plans to cancel Pride campaigns. Target had its sponsorship rejected by Philly Pride organizers who were skeptical of corporate motives.
Trust is fraying: Consumers and LGBTQ+ communities are pushing back on what they see as empty gestures or “rainbow capitalism,” where Pride becomes a seasonal marketing campaign instead of a year-round commitment.
Some brands are doubling down: Others, like the San Francisco Giants, are continuing or expanding their Pride efforts, with clear ties to long-standing values and action.
Questions for real estate professionals to ask
Before you post about Pride Month, take a step back. Instead of asking “Should we say something?” — ask “What do we stand for, and how do we show that?”
Here are a few questions to help guide that reflection:
Brand alignment
Do we support LGBTQ+ clients, vendors or team members year-round, or only during Pride Month?
Are our marketing materials and language inclusive?
Have we taken actions that demonstrate allyship beyond a single social media post?
Audience and authenticity
Is our support for Pride aligned with the values and expectations of our audience?
Are we prepared to receive feedback — both positive and critical — and respond thoughtfully?
Internal culture
Do LGBTQ+ members of our team feel supported, heard and included?
Are we promoting a work environment that is safe and affirming for all identities?
If you choose to show support, here’s how to do it well
If your answers point toward authentic alignment, here are a few ways to engage online in a way that reflects genuine support:
1. Share stories, not just symbols
Highlight LGBTQ+ homeowners, community leaders or team members (with consent). Focus on real experiences and why inclusive housing matters.
2. Use your platform for education
Explain why inclusive language in listings matters. Share resources on housing discrimination or how to be a more inclusive agent.
3. Partner locally
Collaborate with a local LGBTQ+ center, sponsor a Pride Month event or donate a portion of June commissions to a housing justice cause.
4. Lead with values, not visuals
Avoid slapping a rainbow on your logo without context. Instead, post a message from leadership or team members about why Pride matters to your brand.
5. Engage beyond June
Continue to support inclusive policies, training and representation in your business. Make your content reflect real inclusion all year.
In today’s climate, silence may speak — but so can shallow statements. As a real estate professional, your brand can build trust by leading with clarity and compassion. If you choose to show up for Pride, let it be with purpose, not performance.
Threads ads are live, but most brands are still circling
With more than 350 million monthly active users, Meta’s Threads is no longer just the new kid on the block — it’s an emerging space for brand awareness. Since opening its doors to advertisers in April, Threads has drawn interest, but not a rush. Many brands remain in “wait-and-see” mode, weighing its staying power and strategic potential.
The catch? Threads ad inventory can’t be bought alone — it has to be bundled with other Meta placements. That’s made it less appealing for cautious advertisers, even though agency pros are calling it a “low-risk, high-learning opportunity.” In other words: A safe space to experiment.
So, what is currently working? Organic content. Agencies are advising clients to build an organic presence first, not to drive sales, but to develop a more authentic, human voice. Some brands are treating Threads as a testing ground for tone and personality, rather than a direct-response channel.
For real estate professionals, Threads offers a chance to get ahead of the curve. There’s less competition, more room to be playful and a growing user base watching for fresh voices. Think of it as a sandbox: Try short takes on market trends, hyperlocal commentary or behind-the-scenes posts. Skip the hard sell and focus on connection, because early adopters often get the biggest boost when the platform scales.
ChatGPT adds app integrations and meeting summaries — but is it ready for daily workflow?
OpenAI is positioning ChatGPT as a central hub for work by adding new features that connect it with tools like Gmail, Google Drive, Microsoft Teams and GitHub. In theory, this means less tab-hopping and more seamless access to the info you need, without manual uploads. It even shows the source of each response, making it easier to verify key details.
Another update: ChatGPT can now record and summarize meetings, offering transcripts, action items and key takeaways. It’s designed to streamline everything from brainstorming sessions to client recaps.
For real estate professionals, these features could reduce time spent on admin and follow-up, but only if they integrate smoothly into your existing systems. It’s worth exploring, especially for solo agents or small teams looking to stay organized — just keep an eye on whether the tech matches your workflow.
TikTok doubles down on brand tools — from insights to conversions
TikTok’s newest updates aim to make brand marketing smarter, not just splashier. With the launch of Market Scope, a first-party analytics platform, marketers can now segment audiences by funnel stage, track brand sentiment and discover top-performing products and keywords — all from inside TikTok.
They’ve also introduced Brand Consideration Ads, a new mid-funnel campaign objective designed to reach high-intent users based on in-app behaviors, such as searches, shares and clicks, which convert at rates 14 to 16 times higher than awareness audiences.
Other updates include TopView upgrades, featuring new interactive add-ons such as gift boxes and a guaranteed audience reach feature, as well as direct linking from brand ads to TikTok Shop, streamlining the path from discovery to purchase.
For real estate professionals, these tools offer a new way to move beyond brand awareness and guide potential buyers or clients down the funnel — whether that means building your audience, gathering insights or driving people to book an appointment.
TL;DR (Too Long, Didn’t Read)
? Pride Month branding is under a microscope: Many companies are pulling back, but others are leaning in with purpose. Before posting, real estate pros should assess values, culture and community alignment.
? Threads ads are now live, but most brands are starting with organic content to test their voice and tone before investing.
? ChatGPT integrations and meeting summaries could streamline work, but adoption depends on how well they fit into your existing systems.
? TikTok’s new brand tools give pros more power to track engagement, build mid-funnel audiences and drive conversions, not just awareness.
Building trust online isn’t about flashy content or checking a box — it’s about showing up with purpose. Whether you’re navigating how your brand supports Pride or experimenting with emerging platforms like Threads, the real opportunity lies in leading with clarity, not just visibility.
For real estate professionals, that means trading performative posts for meaningful presence — the kind that reflects your values, builds connection and resonates long after someone scrolls by.
Jessi Healey is a freelance writer and social media manager specializing in real estate. Find her onInstagram,LinkedIn,Threads, orBluesky.
Don’t go silent this summer. Reach out to past clients, and show them you care with these strategies from coach Darryl Davis.
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
In a world of automation and AI, agents who lead with heart and human connection are the ones who stand out. One of the simplest (yet most overlooked) ways to build a business that lasts? Gratitude.
Not just at closing. Not just at holidays. But especially during seasons when most agents go quiet.
This summer, don’t go dark. Show up. Check in. Give thanks. Here are nine smart, smile-inducing ways to show appreciation to your clients and sphere in a way that builds loyalty, trust and future business.
1. Host a summer client appreciation event
It doesn’t have to be a gala. A backyard BBQ, a sunset ice cream social or even a picnic in the park can work wonders. Invite past clients, current prospects and vendor partners for a laid-back celebration of the people who make your business possible.
Pro tip: Bring name tags, have a fun photo booth and hand out thank-you cards on-site. These little touches go a long way in turning a fun event into a memorable one.
2. Deliver a summer survival kit
Think practical and personal. A small tote with sunscreen, a reusable water bottle, maybe even a cooling towel or bug spray. Add a handwritten note that says, “Just wanted to help you stay cool this summer — thanks again for trusting me with your real estate journey.”
Bonus: Include a magnet or postcard with a quick summer home maintenance checklist — they’ll appreciate the thoughtfulness and your expertise.
3. Create and share a local summer guide
Be the neighborhood expert who goes beyond real estate. Put together a well-designed, branded-to-you list or PDF of local concerts, farmers’ markets, splash pads, kid-friendly events or date night ideas.
Teaching moment: This shows you know (and love) your community. It’s also shareable — clients may forward it to friends, expanding your reach organically.
4. Offer a free home checkup or seasonal maintenance reminder
Team up with a trusted local contractor or handyman and offer complimentary or discounted check-ups for things like A/C units, gutters or sprinkler systems. Or simply send a branded summer maintenance checklist with your favorite vendor recommendations.
Why it matters: It positions you as a homeowner ally, not just a sales rep. People remember the agent who made their life easier — even years after closing.
5. Drop off a sweet treat
Surprise and delight goes a long way. A small cooler of popsicles on the porch, a fruit basket with a ribbon or even a $5 gift card to the local ice cream shop with a punny note like, “Real estate is sweet — thanks to you!”
What to know: These don’t need to be extravagant. They need to be timely and thoughtful. That’s what gets remembered.
6. Send a personalized market update
Take a few minutes to send a quick check-in: “Hey! Just wanted to share what’s happening in your neighborhood right now — your home’s value may surprise you.” Attach a mini CMA or video message.
Pro insight: This isn’t just a pitch — it’s a service. It keeps your clients informed and shows that you’re still actively invested in their biggest investment.
7. Celebrate milestones that matter
Home anniversaries. Birthdays. New babies. First summer in a new home. These are easy to track (CRM, anyone?) — but so often missed. A handwritten card, a bottle of lemonade with a bow or even just a call can rekindle client connections.
Tip: Use your phone’s reminders, or set up recurring calendar events so you don’t miss these moments.
8. Host a fun summer giveaway
Make it seasonal and simple. “Enter to win a backyard BBQ basket!” or “Tell us your favorite summer memory for a chance to win local concert tickets.” Keep the entry tied to your business — maybe a photo of their home, a testimonial or referral.
Why it works: Giveaways create engagement. People love free stuff, and they love sharing with others even more.
9. Send a handwritten note — No strings attached
No marketing. No QR code. Just a real thank-you. Something like, “This time of year always reminds me how grateful I am for the clients who’ve trusted me. Hope you’re having a great summer.”
Fact: A handwritten note stands out 10x more than any email or text — and it costs you less than a dollar. Clients aren’t loyal to agents who simply “close the deal.” They’re loyal to agents who stay connected.
Summer is the perfect time to be the exception. To show up when no one else is. To deliver gratitude when others go silent. To stay top of mind — not with gimmicks, but with genuine care.
You don’t have to do all nine. Just start with one. Then do another. Then repeat. Because when your business is built on relationships, referrals aren’t luck — they’re the natural result.
And if you ever need a little inspiration or a boost of encouragement, you’re in the right place. Inman’s full of the kind of agents, ideas and stories that help you grow stronger in every season.
Shares in the iBuyer have traded for as little as $0.58 on the Nasdaq in recent days — well below the $1 threshold companies must meet to avoid delisting.
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
IBuyer Opendoor on Friday announced that it is planning a reverse stock split — a measure designed to avoid getting kicked out of the Nasdaq for having a too-low share price.
The company announced the move in a statement and filing with the U.S. Securities and Exchange Commission, saying the board of directors is recommending the reverse stock split. Chief Financial Officer Selim Freiha said in the statement that the “proposal is intended to support long-term shareholder value and give us optionality in preserving our listing on Nasdaq.”
“We’re grateful for the continued support of our shareholders, and remain focused on building a durable, technology-driven platform that powers life’s progress, one move at a time,” Freiha added.
The statement notes that the split could range from between 1-for-10 shares to 1-for-50 shares, “with the exact ratio within such range to be determined by the board in its discretion.”
The move comes amid a challenging period for Opendoor that has seen its share price fall from a high of more than $34 in 2021 to a current price of just under $0.70 on the Nasdaq. Earlier this week, shares dipped below $0.60 — to $0.58. Higher mortgage rates, lower home sales, and minimal home appreciation — all trends that have been ongoing for several years now — have been particularly hard on iBuyers, which make money if they buy, renovate, and sell homes at a profit.
Companies are required to maintain a share price of at least $1 in order to remain listed on the Nasdaq. Opendoor shares were consistently trading below that threshold by early April, and the company received a warning from Nasdaq about the situation earlier this month. The warning gave Opendoor 180 days to get back into compliance — or in other words to raise its share price back above $1.
Opendoor shareholders now have to approve the reverse stock split. However, the company’s statement notes that even with shareholder approval, the board “will not effect the reverse stock split if the board does not deem it to be in the best interests of the Company and its stockholders.”
In pursuing a reverse stock split, Opendoor follows in the footsteps of its smaller iBuying rival Offerpad, which carried out a 1-for-15 reverse stock split in 2023. Offerpad shares had fallen below the $1 threshold in late 2022. And like Opendoor today, Offerpad back then opted for the reverse split to avoid getting booted from the market.
In Offerpad’s case, the move worked — for a while. Shares hovered between $8 and $10 for the final half of 2023 and into 2024, but have since been in a state of steady decline. As of Friday afternoon, they were trading for just over $1, though they have dipped below that threshold several times recently.
Offerpad had a market cap of just over $31 million as of Friday afternoon. Opendoor’s market cap was about $493 million.
In response to harder times, Opendoor has leaned into more asset light revenue streams, including a seller marketplace and a referral program for agents. Such moves helped Opendoor trim losses in Q1, though revenue was also down during the first three months of the year.
In its statement Friday, Opendoor ultimately said that the board’s decision to pursue the reverse stock split “will be based on a number of factors, including market conditions, the historical, then‑existing and expected trading price of our common stock,” and the “continued listing requirements of the Nasdaq Global Select Market.”
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
Senate Democrats have questions and concerns about the Trump administration’s plans to restructure mortgage giants Fannie Mae and Freddie Mac — and are asking their federal regulator to put any action to privatize them or take them public on hold.
In a letter to Federal Housing Finance Agency (FHFA) Director Bill Pulte Thursday, lawmakers asked for assurances that changes in the works at Fannie and Freddie won’t “put investor profits over the homes of millions of Americans” and drive mortgage rates up.
“As FHFA Director, you have a duty to ensure the safety and soundness of [Fannie and Freddie], and a decision of this magnitude cannot be made on a whim without Congressional consultation and approval,” lawmakers said.
The five-page letter — signed by 14 Senate Democrats, including ranking Banking Committee member Elizabeth Warren and Senate Minority Leader Chuck Schumer — sought more information about the status of plans to reorganize Fannie and Freddie by June 18, 2025.
An FHFA spokesperson said in a statement to Inman that the agency is “studying how, if the President elects to take Fannie and Freddie public, it can be done in the safest and soundest manner, which includes keeping them in conservatorship. In any scenario, we will ensure the MBS [mortgage-backed securities] market is safe and sound and that there is no upward pressure on rates.”
Fannie and Freddie were placed in government conservatorship in 2008 under financial strains generated by the 2007-2009 housing crash and the Great Recession. The companies don’t make loans themselves, but play a vital role in keeping mortgage rates down by guaranteeing that MBS investors who fund most U.S. home loans get paid even when homeowners have trouble making their loan payments.
While Trump took steps during his first administration to release the mortgage giants from the government’s control, disagreements over how the companies would be structured have kept the “government-sponsored entities,” or GSEs, in limbo.
Advocates of privatizing Fannie and Freddie have always expected that it would entail the government divesting itself of its ownership in the companies and releasing them from conservatorship. The Trump administration has hinted at a different path that could involve taking the companies public while maintaining the FHFA’s tight control over their business.
Restructuring Fannie and Freddie without privatizing them might keep mortgage rates from climbing, but could also leave taxpayers on the hook if the companies run into trouble again.
In a May 28 appearance on CNBC, Pulte noted that in one recent social media post, Trump “very explicitly says that he wants to take them public. He did not say that he wants to privatize them.”
Treasury Secretary Scott Bessent has acknowledged that the government might even put its considerable stake in the companies in a sovereign wealth fund. In theory, Fannie and Freddie could generate revenue for the government.
“The reason they’re talking about this is they need the cash in order to make their tax cuts and their budget reconciliation bill work,” Whalen Global Advisors LLC Chairman Christopher Whalen told Yahoo Finance on May 22.
Shares in Fannie and Freddie gained more than 40 percent after Trump first posted to social media on May 21 that the companies “are doing very well, throwing off a lot of CASH, and the time would seem to be right” to take them public.
But Fannie and Freddie shares have since given up some of those gains, as it dawned on investors that the Trump administration might be more intent on tapping the companies as a source of revenue than privatizing them.
After Trump posted to Truth Social on May 27 that the government intended to maintain an implicit guarantee of Fannie and Freddie’s obligations, some Fannie and Freddie investors got cold feet and sold their shares.
A June 3 Bloomberg News story that confirmed the mortgage giants might remain in conservatorship — and perhaps be used to generate revenue to pare down the deficit — accelerated the selloff in Fannie and Freddie.
Ackman’s case for forgiveness
If the Trump administration wants to use Fannie and Freddie to generate revenue instead of privatizing them, that might come at the expense of existing investors, whose shares have traded on an over-the-counter exchange since being delisted by the New York Stock Exchange in 2010.
That includes billionaire Bill Ackman’s hedge fund management company, Pershing Square Capital Management, which holds significant stakes in both companies.
The worst-case scenario for existing investors is that the government converts its senior preferred shares in the companies into common stock, massively diluting the value of existing stockholders’ shares.
In a lengthy June 3 post on X, Ackman called the “notion that the Trump administration would act in a manner to wipe out [existing Fannie and Freddie] investors for an uncertain and likely suboptimal outcome … extremely unlikely.”
Ackman argues that the government would come out ahead if it simply cancelled the $348.2 billion Fannie and Freddie would currently be required to pay to buy back their preferred shares under terms established in 2008.
Cancelling Fannie and Freddie’s balance sheet liabilities would not be a gift to existing shareholders, Ackman maintains, because the mortgage giants never got credit for $301 billion in payments they made to the government when the Treasury was sweeping all of their profits into government coffers.
If the government instead tried to convert its preferred shares into common stock, Fannie and Freddie would have difficulty raising money from the private sector, Ackman argued — and face a flood of lawsuits from existing investors that would delay their exit from conservatorship.
Ackman complained that the media “often depicts Pershing Square as having wealthy investors,” but noted that the company manages funds on behalf of thousands of small shareholders as well as pension funds and others that invest on behalf of retirees and other small investors.
“While the press and some politicians attempt to portray the [potential release of Fannie and Freddie] from conservatorship as a windfall for the rich, the vast majority of the value created here will go to small investors,” Ackman claimed.
Depending on what the Trump administration has in mind for the mortgage giants, it may not be required to obtain Congressional approval.
Moody’s Chief Economist Mark Zandi said Monday that the most likely outcome is that the Trump administration keeps Fannie and Freddie in conservatorship so mortgage rates don’t go up.
Zandi said he’d like to see Fannie and Freddie chartered as government corporations with an explicit guarantee, which would help keep mortgage rates low.
Real estate industry groups like the National Association of Realtors and the Mortgage Bankers Association have proposed a “utility-style” model for Fannie and Freddie that would provide an explicit guarantee while limiting their risks and profits.
But because Congress would have to pass legislation approving such a model, there’s virutally no chance of that happening, Zandi said.
Trump has a tight grip on Fannie and Freddie
The Trump administration gained tight control over Fannie and Freddie after Pulte, grandson of PulteGroup founder William J. Pulte, fired 14 board members and made himself the chair of both companies in March.
Pulte has issued dozens of orders out of the public eye, eliminating programs and policies intended to boost lending in minority communities, protect borrowers from unfair or deceptive practices, and assess risks associated with climate change.
New appointees to the mortgage giants’ boards include banker and investor Omeed Malik — dubbed “MAGA world’s premier financier” and a “close friend” of Donald Trump Jr. by New York Magazine — as well as former Pulte Group division president Mike Stucky and Brandon Hamara Hamara, vice president of land acquisition at homebuilder Tri Pointe Homes Inc.
Senate Democrats have questioned the legality of Pulte’s Fannie and Freddie board purges and his right to serve as chair of the companies.
In their June 5 letter to Pulte, lawmakers wanted to know what the timeline was for privatizing or restructuring Fannie and Freddie, and whether the FHFA has met with Ackman or any other GSE shareholders.
“To our knowledge, neither FHFA nor the Administration have produced a study on the impact that releasing [Fannie and Freddie from conservatorship] would have on safety and soundness, mortgage rates, or the housing market and financial system more broadly,” Senate Democrats said.
The Trump administration “has also not released any information indicating whether the [GSEs] financial positions would make it feasible to take them public, including by relisting their common and preferred stock, or what taking them public would entail,” lawmakers complained.
Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.
