Exclusive: Opendoor CEO Reveals Company’s Own Mortgage Product Is In Beta Phase, Criticizes Fed On Interest Rates

• In its bid to add more mortgage options to its platform, Opendoor acquired homebuyer.com, a mortgage data platform, in Dec. last year. 
• OPEN’s CEO said that the company shipped its latest feature late Thursday. 
• The real estate digital platform on Thursday posted revenue for the fourth-quarter (Q4) of $736 million, much above street expectations of $591.75 million, as per data from Fiscal.ai.

OpenDoor's (OPEN) Chief Executive Officer Kaz Nejatian in an exclusive interview to Stocktwits on Friday hinted that the company's mortgage product is in beta phase as the company pushes to enable itself to issue its own mortgage on homes it sells, helping cut out middlemen.

“I left the earnings call and came to the office and started working on our product because we actually shipped a new feature late last night around 11 p.m. So I was up a little late shipping,” Nejatian told Stocktwits’ in an interview. 

In its bid to add more mortgage options to its platform, Opendoor acquired homebuyer.com, a mortgage data platform, in Dec. last year. The deal fits OPEN’s CEO Kaz’s AI-pilled vision of using data to eliminate ‘toilful work’ like manual paperwork.

Critical Of Fed

Nejatian criticized the U.S. Federal Reserve for maintaining the interest rates at the level they are. 

“I think the Fed is being deeply irresponsible these days with maintaining these interest levels,” he told Stocktwits. 

“Trueflation, which is a much better measure of inflation than CPI, truflation has been sub 1 % basically the entire year. The Fed is asking people to believe that Bureau of Labor Statistics’ (BLS) data is a more reliable source for inflation and what's happening to the economy than truflation. And no one believes that. There's no one who invests their own money who would look at BLS data,” he added. 

The Federal Reserve kept the benchmark interest unchanged at 3.5%-3.75% in its January meeting. The latest Federal Open Market Committee’s (FOMC) minutes released by the Fed earlier this week revealed that the central bank might hike the interest rates if inflation does not come down to its targeted range. 

“I think it is highly irresponsible to have artificially elevated interest rates at this time. And I think they need to do something because this is just like, it's very odd,” Nejatian further added. 

Q4 Earnings

The real estate digital platform posted revenue for the fourth-quarter (Q4) of $736 million, much above street expectations of $591.75 million, as per data from Fiscal.ai. Meanwhile, the company’s loss per share came in at $1.26, trailing market expectations of a loss per share of $0.11.

Opendoor said that it expects Q1 revenue to decrease approximately 10% quarter-over-quarter.

How Did Stocktwits Users React?

Retail sentiment around OPEN trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

Shares in the company have risen 221% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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