Opendoor Technologies Inc. (OPEN) shares pushed higher Wednesday after the company's CEO came out swinging in support of what might be the most divisive housing policy idea in recent memory: 50-year mortgages.
Why It Matters: Speaking on Fox Business' "Making Money" Tuesday, CEO Kaz Nejatian didn't hold back his enthusiasm for the Trump administration's mortgage proposal. He framed it as a necessary experiment to crack open America's housing affordability crisis, particularly for younger buyers crushed under student loan debt.
Nejatian's pitch is straightforward: traditional 30-year mortgages aren't cutting it for regular Americans anymore. An extended mortgage term, he argues, would "allow people to get their foot in the door" even if they're carrying heavy education debt loads that currently disqualify them from homeownership.
"If you believe that America is better when people own their homes, it is incredibly important to try a lot of different things to get people into homes," Nejatian said, applauding the administration's willingness to experiment with unconventional solutions.
The Pushback: Not everyone's buying what Nejatian's selling. Betsey Stevenson, who served on President Barack Obama's Council of Economic Advisers, raised red flags about the math. With payments stretched over half a century, borrowers would spend decades paying mostly interest while building almost no equity in their homes.
Brandon Avedikian, a realtor and founder of Aspire Commercial, went further: buyers facing major repairs would actually be better off renting than locking themselves into a 50-year payment plan.
Skin In The Game: Nejatian's backing up his bullish stance with real money. Earlier this week, he announced plans to buy $1 million worth of Opendoor shares on the first day regulations permit, describing it as a family investment. The timing followed the company's third-quarter earnings release.
JPMorgan analyst Dae Lee maintained an Overweight rating with an $8 price target through December 2026, viewing the company's strategic reset under new leadership as critical groundwork for eventual profitability through a volume-focused approach.
OPEN Price Action: Opendoor shares traded up 1.30% at $8.58 Wednesday, according to market sources.