A new federal office was just established to regulate proptech
Until now, the primary responsibility of the Federal Housing Finance Agency (FHFA) was the regulation of Fannie Mae, Freddie Mac and Federal Home Loan Banks. However, the risks related to home ownership have prompted the establishment of The Office of Financial Technology, tasked with collecting information on emerging risks in fintech. Because companies like Offerpad, Zillow, and Opendoor bought about 2% of the US real estate market until the second quarter of 2021, iBuying is the focus of regulatory scrutiny. This has caused disruption in the traditional ecosystems of banks, realtors, developers, and brokers. The office is anticipated to provide suggestions for building trust in iBuying, with guidance for real estate fintech and proptech. Home buying involves rigorous processes like decreasing insurance costs, accelerating mortgage approvals, and providing access to flexible financing options. Before regulations are drafted the FHFA is soliciting input from stakeholders.
