Wall Street’s freaking out, Buffett’s peacing out, and Zillow’s lawyering up

(from CNBC.com)

In another swing at housing affordability, President Trump floated the idea of a 50-year mortgage, and the head of the FHFA, Bill Pulte, quickly replied, “We’re working on it.”

On paper, the idea is simple: stretch the loan term, shrink the monthly payment. LET’S MATH (thank you AI for doing math for me bc I hate math):

Using current averages…

$415K home at today’s rates would drop about $233 a month if stretched from 30 to 50 years. Sounds nice, until you realize you’d build equity way slower and pay about 40% more interest overall.

The bigger problem? These loans don’t even qualify as “safe” under current Dodd-Frank rules, so Fannie Mae and Freddie Mac couldn’t back them without new policy changes, which could take a year or more. And even if they could, the rates would likely be higher than a 30-year fixed anyway.

So yeah, a 50-year mortgage could make headlines… but for most buyers, it’s more like adding extra innings to a game that’s already gone too long.

Read more here

Zillow vs. Everyone

(from Housingwire.com)

Zillow’s certainly having one of the years ever.

The real estate giant is currently fighting seven active lawsuits, covering antitrust, copyright, discrimination, and RESPA claims, plus investigations from state and federal regulators. Here’s 5 major things we think you should know!

• Compass v. Zillow: Filed in June, Compass says Zillow’s new Listing Access Standards rule, which bans listings from appearing anywhere else before Zillow, is anti-competitive and “caused irreparable harm.” A hearing for the injunction is set for Nov. 18, with Compass alleging Zillow and Redfin colluded. Zillow says 90% of agents flagged for violations only needed one warning.
• CoStar v. Zillow: In July, CoStar accused Zillow of “rampant copyright infringement,” claiming it used CoStar’s rental listing photos without authorization, one of the biggest alleged image theft cases in real estate history. Zillow’s trying to move the case from New York to Seattle, calling CoStar’s move “forum shopping.”
• Herrera v. Zillow:  Former employee Samuel James Herrera says he was wrongfully fired after a $724 client dinner that leadership approved, claiming the company’s investigation was “filled with stereotypes about Hispanic men.” Zillow says his allegations are “inconsistent with our culture and values.”
• Regulators v. Zillow: Zillow’s $100 million rental syndication deal with Redfin caught the attention of the FTC and attorneys general from Virginia, Arizona, Connecticut, New York, and Washington. They allege the deal eliminates competition in the rental market. Zillow says the partnership “benefits renters and property managers.”
• The RESPA Claims: Homebuyer Alucard Taylor sued in September, saying Zillow’s Flex and Premier Agent programs “trick consumers” into using Zillow-affiliated agents, inflating commissions and home prices. He’s represented by class-action attorney Steve Berman, who led the Moehrl commission case.

Last week, Araba Armstrong filed another RESPA suit, claiming Zillow gave illegal kickbacks through Zillow Home Loans (ZHL) by rewarding agents who pushed buyers to ZHL with better leads. Zillow denies it, saying lead flow depends on “a number of factors.”

Zillow’s trying to project calm, but between seven lawsuits, five states, and one federal investigation, the portal that made home shopping simple is now in a full-on legal maze

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BONUS KEYCHAIN: NYC’s New Mayor Has Wall Street on Edge

(from Fortune.com)

New York City just elected Zohran Mamdani, a self-described democratic socialist, as its next mayor and the city’s business class is freaking out.

Barry Sternlicht, billionaire CEO of Starwood Property Trust, told the Daily Mail his firm might relocate now that Mamdani’s in charge, warning that “the far-left gets really nuts and says the tenants don’t have to pay,” and that could “turn New York City into Mumbai.”

Sternlicht’s company holds nearly $30 billion in assets, including major luxury developments like The Greenwich and Forty Six Fifty.

Other execs are calmer. Jamie Dimon and Bill Ackman, who both backed Mamdani’s opponent, Andrew Cuomo, now say they’re willing to work with the incoming mayor. Hedge fund manager Ricky Sandler, who once threatened to move his $7.8B fund, backtracked on X, saying he’s staying “for now,” but worries about “safety and livability.”

Even grocery tycoon John Catsimatidis, who owns Gristedes and D’Agostino, said he might move Red Apple Group HQ to “friendly” states like Florida after Mamdani proposed city-run grocery stores that sell food at wholesale prices and don’t pay rent or taxes.

For now, no one’s actually left…….. but there’s a growing sense that NYC’s power players are hedging their bets.

Read more here