Townstone Financial filed a response to the Consumer Financial Protection Bureau appealing the dismissal of a redlining suit it brought against the mortgage lender in 2020.
In a brief filed Aug. 14, the Chicago mortgage lender argued the Seventh Circuit Court of Appeals should affirm the U.S. District Court for the Northern District of Illinois decision, which granted the lender a victory and rejected the bureau’s argument that an anti-discrimination law protects prospective borrowers.
At the time, the District Court ruled that government watchdog’s suit was invalid because the Equal Credit Opportunity Act applies only to home loan applicants, not to potential applicants.
Richard Horn, co-managing partner at Garris Horn LLP and legal counsel for Townstone, called the CFPB’s appeal “an uphill battle” for the bureau and its “arguments weak.”
He noted he was not fully surprised the agency appealed the case because of the “level of hubris internally.”
“The [CFPB] may have some blinders to their legal risks because it doesn’t affect any of the staff there internally…everyone is getting paid and no one is getting fired,” he said. “If the CFPB loses, which we firmly believe they will, they could also appeal to the Supreme Court, so this could go on for a while.”
The CFPB declined to comment.
The Federal Trade Commission, however, did provide input in early June. An amicus brief authored by James Doty, an attorney for the FTC, said the “Congress’s aim of equal access to credit would be a nullity if creditors could blatantly broadcast to protected classes that their applications were not welcome.”
“In upending almost fifty years of law, the district court ignored Congress’s plain language directing regulators to further ECOA’s “purpose” and prevent its “evasion,” Doty’s letter reads.
The suit, launched by the government watchdog almost half a decade ago, accused Townstone of engaging in illegal redlining by discouraging prospective Black applicants from applying for home loans.
The bureau’s complaint alleged that from 2014 through 2017, the company’s CEO and president made statements that “discouraged prospective applicants living in African-American neighborhoods in the Chicago MSA from applying to Townstone for mortgage loans.”
Such alleged remarks included the company’s CEO describing the South Side of Chicago between Friday and Monday as “hoodlum weekend” and that the police are “the only ones between that turning into a real war zone and keeping it where it’s kind of at.”
In February, Judge Franklin Valderrama of the Illinois federal court gave Townstone a victory.
The case was dismissed with prejudice, which meant the CFPB could not refile the complaint. However, the Bureau still maintained a right to appeal. On April 3, it filed a notice with the Seventh Circuit Court of Appeals stating it would do that. The filing did not go into the specific reasons it elected to challenge Judge Valderrama’s ruling.
The agencies intend to tackle two challenges evident during the Covid-years refi boom: higher costs due to appraiser shortages and concerns regarding bias in home valuations.
In their letter, MBA and CBA said that AVMs and technologies like them can alleviate appraiser shortages, reduce transaction costs, and safeguard against individual appraisal bias. Ultimately, a robust regulatory framework continues to be a critical imperative to achieve these outcomes.
However, any regulation should consider the practicalities of model risk management and its potential unintended consequences.
For example, the associations said the proposed rule includes Fannie Mae and Freddie Mac to the new standards, which creates a level playing field in the market. But the trade groups are worried about the impact of quality control standards on the GSEs’ alternative valuation methods, such as desktop appraisal, since these tools are essential in times of high demand.
“MBA and CBA suggest that the agencies consult with the GSEs to ensure that application of the quality control standards would not create adverse effects on the availability of alternative valuation methods,” the letter states.
In addition, regulators should be aware of any unbalanced market effects of AVMs regulations, conflicting interpretations of the legal framework, and the lack of established methodologies in examining systemic bias in the U.S., the trade groups state.
The agencies involved include the Federal Housing Finance Agency; the Consumer Financial Protection Bureau; the National Credit Union Administration; the Federal Deposit Insurance Corporation; the U.S. Department of the Treasury; and the Federal Reserve System.
Per the proposed rules, each institution using AVMs will adopt and maintain its practices, procedures, and control systems, reducing the burden on smaller institutions. But the trade groups request the agencies to include a small lender/servicer exemption from the standards, as these companies are likely to rely on larger outside service providers subject to a thorough review by regulators or larger clients.
Regarding third-party providers, the associations suggest that the CFPB expand its Compliance Bulletin 2016-02, Service Providers to outline expectations and potential recourse “for quality control and fair lending oversight” of third-parties providing AVMs services. In addition, MBA and CBA said that creditors should not be liable for violating nondiscrimination law when relying on third-party AVMs, disagreeing with the agencies’ interpretation of the Fair Housing Act.
The MBA and the CBA requested an adequate implementation timeline of at least 12 months.
The White House supports a new rule for AVMs, which follows goals set out by the president in addressing issues of racial bias that have exacerbated homeownership and wealth gaps. When announcing the proposed rule, Vice President Kamala Harris weighed in.
“Today, I’m proud to announce we are developing a rule that will require that financial institutions ensure that their appraisal algorithms are not biased, for example, that they do not produce lower valuations for homes owned by people of color,” Harris said. “We are also releasing the guidance to make it easier for consumers to appeal what they suspect to be unbiased valuation.”
Another trade group weighed in on the newly proposed rule.
The National Association of Mortgage Brokers (NAMB) said it supports new federal regulatory proposals governing the use of AVMs.
“The reality is the systems and structures are themselves, in some cases, problematic,” said NAMB President Ernest Jones in a statement. “Even when appraisers follow the intended approach, it may result in an outcome that disenfranchises people. They could be doing everything in a way they feel is consistent with the approaches they’ve learned and for which they’re certified, but there are some underlying issues that need to be addressed.”
Inside: Are you looking for a safe and convenient way to buy and sell gift cards? If so, CardCash may be the perfect option for you. This comprehensive review will explore everything you need to know about this popular online marketplace.
Gift cards often seem like the perfect hassle-free gift solution, but receiving a card from a retailer that doesn’t align with your interests can result in unused potential and wasted money.
This is a common occurrence, with Americans currently holding around $21 billion in unused gift cards (source).
I know I have plenty of unused gift cards – probably around $300 worth laying around.
In response, companies like CardCash.com have stepped in to make these cards useful again and alleviate this universal frustration.
The simple goal is to help you extract value from those unwanted or unused gift cards by providing a platform to sell them safely. The solution not only converts unused cards into cash but also offers the opportunity to swap them for discounted cards from preferred retailers or a prepaid Mastercard.
Here is my CardCash review on the simplicity of getting cash for my unused gift cards.
In an era of savvy shopping and financial mindfulness, CardCash is a promising solution to make the most of every gift card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is CardCash?
CardCash is a valuable online platform you can tap into for buying, selling, and exchanging gift cards. A brainchild of Elliot Bohm and Marc Ackerman, it was launched in 2009 with the goal of solving the problem of unused gift cards in America.
Via the CardCash platform, you can:
Sell your gift cards for up to 92% of the card’s value based on the popularity of the retailer.
Use CardCash to purchase gift cards, at a discounted rate, in bulk from over 1100 brands including big names like Amazon, Walmart, Starbucks, and CVS.
Swap your gift card for another retailer. You won’t get the same value though.
Remember, though, you won’t quite get the full value of your card as CardCash keeps a small percentage.
Does CardCash pay you instantly?
No, CardCash does not provide instant payments with cash.
Instead, after your order is approved, payments are typically made within a 48-hour window. This is due to standard processing times.
However, if you select another gift card. That will be available once your order is approved.
The invoice for the gift card claims to offer approximately 92% of the card’s value, but it’s worth noting that the actual payout can be lower at times.
How Does CardCash Work?
CardCash is a brilliant platform if you’re looking to sell, buy, or exchange gift cards. Here’s a quick guide on how you can get started:
Sign up on CardCash.com.
To sell a gift card, enter the merchant’s name and the balance on the gift card.
CardCash will give you an offer; if you accept, you get paid via mailed check, ACH payment, or PayPal. Or you can opt for a Prepaid Mastercard or another retailer gift card of your choice.
To buy a gift card, browse through the list of available cards and pick one that suits you.
Proceed to payment and enjoy your discounted gift card!
Pro Tip: Always check the price differences between the card value and the purchase price for the best deals.
How much does CardCash pay for gift cards?
Contrary to what CardCash claims, you won’t receive the full 92% of your gift card’s value.
The actual amount you’ll get depends largely on how popular the issuing merchant is. For popular sellers like Amazon or Walmart, you might get closer to their claim, but not always.
Sadly, for less-known retailers, offers might sink as low as 50% of your gift card’s worth.
Pros of CardCash
Considering an online platform for buying, selling, or swapping gift cards? CardCash is definitely one to consider.
Personally, I wanted to test it out and today you can find my CardCash Review.
The distinct features of CardCash include:
A wide selection of gift cards from over 1100 retailers
Instant payment in cash or a swap for another gift card when you sell your unused gift cards
Exclusive offers and discount opportunities for regular users
Convenience as the platform is easy to use and provides a hassle-free experience for users who buy or sell gift cards.
Unused gift cards can be sold for cash or swapped for your preferred merchant’s gift cards, giving value to otherwise wasted money.
Very user-friendly: It’s simple and effortless to buy and sell gift cards on this platform – a massive plus for users.
With all these advantages, CardCash makes a pretty compelling case as your go-to online gift card marketplace.
CardCash, a reputable gift card marketplace, might just be the perfect match for your needs!
Cons of CardCash
Before you decide to use CardCash, it’s important to weigh the drawbacks of the platform against its benefits.
Recognizing these concerns helps you make an informed decision and avoid potential hiccups along the way.
Here are the top cons to using CardCash:
Lower Payouts: When you decide to sell your gift cards on the platform, you might receive lower payouts than you’d expect. Be sure to carefully evaluate these potential losses.
Merchant isn’t on Platform: Not all merchants are available on the platform, which is unfortunate.
Short Buyer Protection Guarantee: Compared to other gift card marketplaces, CardCash’s 45-day buyer protection guarantee feels rather insufficient. For comparison, Raise offers a guarantee for a full year.
Disappearing Balances: Many users have reported issues with their card balances mysteriously disappearing, which can be quite unsettling. Learnwhy this unfortunately happens.
Is CardCash Legit?
Yes, CardCash is legit.
They’re a longstanding player in the gift card industry, thanks to robust security measures and a user-friendly platform.
Established over a decade ago, they have experience in offering a secure platform for buying, selling, or trading gift cards.
How do you go about sending eGift cards to CardCash?
Converting eGift cards works essentially the same way as converting physical gift cards. You still get the same benefits whether you are converting eGift cards or physical ones.
All you need to provide is the relevant information about the eGift card.
The payment process for selling eGift and physical gift cards is the same.
You can receive payment in cash or you can exchange for another gift card of your choosing.
Expert Tip: Make sure to accurately provide all necessary details regarding your eGift card to ensure a smooth transaction process.
CardCash Common Questions
CardCash is a website that allows you to buy, sell, and trade gift cards.
I tested out the site with various gift cards as part of my Cardcash review.
As this concept may be new to you, let’s answer some common questions about CardCash and give you our honest opinion on whether or not it’s a legit website.
1. Are CardCash transactions safe?
CardCash transactions are generally safe.
As a reputable marketplace for gift cards, CardCash enforces strict security measures like other platforms such as eBay or Amazon. However, it’s important to remember that you’re dealing with third parties that could potentially misuse gift card PINs.
To counteract this, CardCash offers a money-back guarantee for unsatisfied purchases. For example, if a gift card you bought is exposed as fraudulent, you can get your money back.
Despite this, always exercise caution, and use common sense while making transactions.
2. Are there any fees when buying or selling a gift card?
When you’re buying or selling gift cards on CardCash, there are no fees applied to your transactions.
The platform allows free signup and doesn’t charge for usage.
Purchasing a gift card? Absolutely zero fees. All you pay for is the discounted cost of the card itself.
Selling a gift card? No worries, still no fees. After providing your card details and balance, you’ll receive an offer. If you accept, the payment goes directly to you via check, PayPal, or direct deposit with no extra charges.
For instance, you have a $50 Best Buy gift card. After inputting the details, CardCash offers $45. If you accept, the $45 is sent to you without any deductions.
3. Is there any risk of identity theft when buying or selling gift cards?
Identity theft is when someone unlawfully obtains and uses your personal information, often for fraudulent purposes.
No, there should not be the risk of identity theft when buying or selling gift cards.
4. Is CardCash safe to use?
CardCash is definitely safe for use.
Operating since 2009, the platform is not only registered but also provides users with advanced security measures to secure personal data and transactions.
With a physical address and listed contact number, assistance is always at hand. Think of CardCash like a vault – your unused gift cards are safe to sell on it and your personal details are locked away securely.
5. Does CardCash buy stolen gift cards?
No, CardCash does not buy stolen gift cards. That is 100%, not their intent.
When you sell a gift card to CardCash, they require you to provide certain personal details to comply with federal anti-money laundering laws. CardCash uses these details to verify the authenticity of the sale and the seller.
However, remember that CardCash is an online marketplace where third-party vendors sell cards. Although most users are honest, there’s a risk of encountering scams unfortunately, and you should always exercise caution when using the platform.
Learn how to handle an Amazon package says delivered but not received.
6. Is it safe to buy gift cards with a credit card?
It is safe to buy gift cards with a credit card as long as you are using a reputable source.
When you use a credit card, you have the added protection of being able to dispute the charges if you do not receive the gift card or if it is not what you expected.
Make sure you are on CardCash’s legit website and you see the lock on the search bar indicating a secured website.
7. Are there any drawbacks to using CardCash?
One key drawback is the misleading discount rates.
Partner websites listed on CardCash may promise higher discounts than they actually deliver, leaving you scratching your head when your wallet feels lighter than expected.
As part of my Cardcash review, my Red Robin gift card valued at $25 would only receive $15.75 cash, which is 63% of its value.
Another significant concern is the 45-day buyer protection. Your best bet is to use your gift card within this limited time frame to avoid losses.
8. What are CardCash’s payout options?
For most, you want a direct, monetary form of compensation which is quite advantageous for those individuals who prefer having cold, hard cash as opposed to holding onto a gift card that they will never use.
Here are CardCash’s payout options:
Cash: CardCash allows users to sell their gift cards in exchange for cash. You can get a mailed check, ACH payment, or PayPal.
Prepaid Mastercard: Besides cash, CardCash also gives users the option to receive their payment via a Prepaid Mastercard. This is a convenient option, especially for those who like to keep their funds digital or for those who might not have convenient access to a bank.
Another gift card: One of the unique payout options provided by CardCash is the ability to exchange a gift card for another one. This option typically gives you a higher payout amount as well. But, you are limited to the merchants offered.
Just remember, payouts can fluctuate and might be less depending on the popularity of the gift card’s merchant.
9. Is it safe to sell gift cards on CardCash?
CardCash is a trusted platform where you can safely sell your unwanted gift cards.
However, keep in mind that you probably won’t get the full face value of the card, as the company keeps around 8-10% of its value.
Despite this, it’s a reliable way to make some money from unused gift cards. Card Cash is not a scam
10. What should I do if I have a complaint about CardCash?
If you’ve got complaints about CardCash, it’s crucial to voice them right away – that’s how issues get resolved.
Try reaching out to their customer support using the “Contact Us” form on their website.
If your complaint is due to balance discrepancies within 45 days of purchase, then email [email protected].
If that doesn’t work, send a detailed email to [email protected]. Be sure to mention specific problems and desired outcomes.
Most importantly, if there’s an issue with a gift card you bought, ensure you file a complaint within 45 days of purchase to receive a full refund.
My CardCash Review
Having firsthand experience with CardCash, I can share my insights about the process and how it measures up to my expectations.
Firstly, the process was indeed straightforward to navigate. The platform has been designed in a very user-friendly way that facilitates convenience and efficiency. It’s quite simple to get onboard, sell, or purchase a gift card.
However, there was a slight hitch – the value percentage offered. This slippage is more than I anticipated.
According to my experience and perception, the payouts for selling gift cards felt a bit lower than expected.
Here were the values I was given:
=> Olive Garden = 71% of value => Red Robin = 63% of value => Chili’s = 70% of value => DoorDash = not an option to sell
Gauging the 45-day buyer protection guarantee initially, it seemed impressive as it ensures a refund if the gift cards don’t function as advertised. However, there’s a catch – the gift cards should be used within this 45-day window, as the 45-day guarantee goes away.
In a nutshell, the experience with CardCash has been a positive experience. Personally, I would have rather been given the cash to use as a please versus a gift card.
However, all of the local gift card exchange kiosks don’t trade in gift cards. So, I felt my options were limited and chose to use CardCash.
FAQ
Yes, selling gift cards for cash is legit.
You need to use a verified site to avoid a scam.
A credit card is needed on CardCash for several reasons.
In order to use the service, you must have a credit card so that you can be properly verified. This is necessary in order to protect both the buyer and the seller.
This CardCash Review Should Help You
So, you’re considering CardCash for buying or selling gift cards, huh?
Well, on the positive side, CardCash offers an easy channel for getting rid of unwanted gift cards or buying new ones with a discount – sounds like a good deal, right?
Buying gift cards with a credit card from sites like CardCash can be safe, provided you take some precautions.
For me, it was a simple process and I chose another gift card.
Consequently, it’s important to remember that you’re purchasing second-hand gift cards, which could potentially have odd issues come up.
To ensure your value, make use of the 45-day guarantee. For example, if you’re planning a big purchase next month, buy the gift card now and make sure to use it within this timeframe. This minimizes the risk of being left with a worthless card after the guarantee period.
So, do your homework, understand how CardCash operates before diving in, or consider other options for more reliable service.
Just remember, while buying, you pay about 90-92% of the card value, and while selling, you get the same.
Know someone else that needs this, too? Then, please share!!
Real Estate Profits are only earned from RENTS minus COSTS
Without understanding and controlling costs, today’s property management applications are missing the biggest nugget of information that property managers and DIY real estate investors require to make and keep investments financially sound. A revamping of antiquated offline rental property management applications converted to newer online property management applications won’t help if investors do not control costs.
In my many, many years as a DIY landlord, managing property myself and using professional property management firms, the two most important success factors to making profits are: acquiring great tenants and excellent cost controls.
Past property management software applications basically only automated bookkeeping and were convenient for preparing tax returns. The applications never integrated with newspaper ads when trying to acquire new tenants, nor did they help in qualifying tenants. Modern property management applications have made tenant acquisition and bookkeeping slightly more convenient; however, they haven’t uncovered the holy grail.
Integrating Cost Management into Property Management Software is THE Game-Changer
An investor who buys property to rent does so with a long term view– not for a flip or quick resale. Although landlords need to keep looking for ways to cut their costs like any other business, renting property profitably is unlike any other business. As with manufacturing, there is a large upfront cost, but property is immobile and its product can’t be shipped to other geographies for sale. Renting property is also different from service businesses. Landlords can’t “downsize” property as service business can do to labor to remain profitable. As an asset class, owning property is illiquid unlike stocks or bonds which can be bought or sold in an instant.
Profitable real estate investing is very challenging and consists of finding locations to rent with profits coming solely from diligent property management over time- even during times when rents seem ridiculously high. Therefore, the investor’s sole purpose in selecting and using property management software should be to get help to reduce costs over a multi-year period. Getting bookkeeping and tax preparation help is only the ‘block and tackling” of property management software. Property management applications need to help make the real estate investments more profitable each year regardless of changes in property market value, interest rates, property taxes, increases in rent, or anything else.
Recommended Cost Management Items for Property Management Software
I really don’t need any more comparative rent matching applications, nor do I need more or better bookkeeping software. I can easily keep using my existing outdated software. Because rental units are in heavy demand, there are many online places where I can easily compare rents and even list my vacant units. I can find sample leases on the internet to use and there are online tenant qualification tools, tax filing tools, yada, yada, yada. Many of these items are free, too.
Success in rental real estate investing all comes down to Revenues minus Costs equals Profit no matter what comparative rental services say you can rent the property for, where I list my properties, etc. To help me become more successful, the following are the items I need from property management software.
The top items I would want for cost management:
Item
Description
Rationale
1
Generate a unit configuration spreadsheet that matches what I rent.
I want to know the rental investment configuration for keeping track of expenses.
Is it a house, condo, townhome, land, with furniture, appliances, etc?
2
Automated budget preparation based on rental unit configuration.
Many software applications can prepare comparative rentals for my areas, why not keep a database for comparative costs and apply them to the unit spreadsheet?
3
Automatically Integrate expense invoices into my unit database and spreadsheet.
Register repair services and ask them to use my software to generate their bills for me. Of course, I would need my software to transmit an invoice copy to them in some standard formats. But for many owners and service companies, this change in the billing process will probably be welcomed by both parties. In this way, I would have control over everything I spend on for expense analysis, tax preparation, etc.
4
Manage larger maintenance or renovations projects.
Maintenant Costs not only need control, they also need to be implemented in a timely fashion, especially at unit turnover. Integration with one of the available project management tools available would be very helpful.
5
Provide cost summary and analytical tools. AI repair service recommendations would be very much appreciated in this area.
I want to see how much I spent on repairs and also compare costs of the service companies I hire. AI software could help by doing comparative analysis of my service costs, versus other vendors costs for the same services.
6
Prepare historical unit profit and loss summaries including the rate of return etc. and forecast profits per unit based on total investments, return rate on invested cash, total profits, etc.
I need to compare my unit and total investments to make real estate purchase, sale, exchange or other decisions
Additional “nice, and very nice, to have” items
Item
Description
Rationale
7
Categorize repairs for tax purposes
Sorting and separating out capital expense options from current expenses is a big help, even if you use a tax advisor.
8
AI recommendations for potential purchases that integrate with my current portfolio.
When surveying a property to purchase, there are those which will fit in easily with an investor’s existing portfolio, and others which will need a large integration effort or require a whole set of new skills and knowledge. For example, consumer vacation rentals versus commercial retail space rentals are two market extremes of different types of investment real estate which have completely different markets and customers.
Very Nice!
9
Tax preparations.
Produce the US Internal Revenue Schedule E or other forms required for filing taxes.
10
Provide tools which can search the internet to help with financing/refinancing unit purchases etc.
Price and financing options can make a big difference in a potential property purchase or long term profitability. Any software that could analyze my portfolio, suggest financing options, and search the internet for them would be a fantastic service.
11
Integration with TurboTax or other standard tax preparation software
Preparation of the correct forms for uploading into standard annual tax software packages along with the rest of a taxpayer’s Income tax file.
Very Nice!
12
Provide Depreciation forecasts for a unit based on the US IRS depreciation schedules
Keeping track of what is taxable profit and what is sheltered through depreciation helps make best use of property cash flow.
It isn’t how much RENT you get. It’s how much it costs you to get that RENT!
[Editor’s note: We’re in the process of writing the final conclusions for the small landlord property management software category review for members of the Geek Estate Mastermind.]
I have often found that where technology and financial services come together, the no’s are necessary. As such, shouldn’t we learn to make them happen productively? Saying no is an inevitability — or rather, it should be. Anyone who has tried to accommodate the ‘yes’s’ all the time could tell you that it is impossible to say yes to everything.
Those who try to say yes 100% of the time are often mistaken in thinking it’s working effectively for them and for those around them — even the parties they’re saying ‘yes’ to.
But, saying yes to everything removes us from the equation and renders our point of view immaterial. It makes our judgement about the effectiveness or outcomes moot.
The privilege of saying no
We should make saying ‘no’ a habit, but rather that the intuition, intelligence and experience that may lead us to consider ‘no’ as a viable conclusion are vital signals that we should not take for granted. The ability to bring these signals to bear involves first recognizing that as an option and then exercising it as an advantage — not only for us, but also on behalf of the people who are depending on us.
Capitalizing on the advantages of when to say ‘no’ can make the difference between good and great — between maintenance and breakthrough. Some of the best advice I ever received was when a former boss advised me to, “Say ‘no’ to the good, so you can say ‘yes’ to the best.” If you fill your plate with the “good,” then where is the time or room to take advantage of great opportunities that show up?
I heard another version of this advice when a coach commented on a personnel option he chose not to exercise: “Some of the best deals are the ones you don’t make.”
The boundaries of time
It becomes clearer where to set boundaries when we carefully consider our entire vision. Your end-goal is the guide that allows you to see what smaller goals lead toward, what challenges or actions may divert you away from it and what merely marks time.
Knowing what your “great” looks like can be a touchstone, a reference for when to agree to do something and when not to. While staying open to the unexpected, we can see opportunity in any development. The key is to keep our goals and vision in mind, and act distinctly.
Time is the ever-present resource on which we can exercise critical choices. Our calendars, schedules and agendas construct a gymnasium where purpose gains definition. Be deliberate in assigning time to the things that are most important to you and recognize that we must work on our business and not just in our business. This means apportioning time for analysis, strategy and evaluation.
If we only schedule operations and execution, then the business is running us. Therefore, we should make a point of scheduling the time to think — both alone and together.
The response you can expect
You may find it hard to practice saying no deliberately. If you’ve formed a habit of saying yes too often, it is easy to slip back into old patterns. The best way to overcome this sense of resistance is to stick with your plan and pay attention to what you’re getting in return.
Once you find that you have more time and energy to focus on what really matters to you, then the reward and value of saying no becomes more apparent.
Not everyone will understand when you say ‘no.’ This is not an obstacle, but rather a road sign. If everyone agrees with you, then it is unlikely that your decision is accomplishing anything worthwhile. Your options for dealing with this response can be yet another opportunity for progress.
Sometimes, explaining your decision can be a real opportunity to enhance the impact. It is vital that the timing and extent of your explanation isn’t seen as an apology or uncertainty. The risk of weakening your decision must be avoided, yet the chance to put the energy of understanding behind it can, on occasion, be worth taking.
Here, where technology and financial services come together, I have had the tremendous professional opportunity of seeing what works in real market situations, more or less immediately almost every day and I’m happy to share what I have learned.
Christy Soukhamneut is managing director of Mortgage Finance in Texas.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Texas Capital Bank.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the author of this story: Christy Soukhamneut at [email protected]
To contact the editor responsible for this story: Sarah Wheeler at [email protected]
Summer, summer, summertime. There’s really nothing like it. And, on a scorching summer day, what could be better than kicking back by the pool, catching a few rays and riding out the heat with a few of your closest friends?
So, you want to throw a pool party that everyone will remember? Follow the expert tips below and set the new standard for summertime fun by throwing the most memorable pool party of the year.
Test your pool water
“Remember to test your pool water in the days leading up to your pool party,” urges a pool expert at Leslie’s.
This is “to ensure it’s safe and healthy for all. If your pool water isn’t clean, clear and sanitized, the pool party will not be fun for anyone!”
“Once you’re ready to party, you can add outdoor furniture, waterproof speakers, refreshments, snacks, games and cool pool floats to your backyard and pool!”
Create a welcoming ambiance
“Set the mood for your nighttime pool party with an impressive light show,” suggests Hannah Eubank of Pool Sharp TX.
“Most pool lights with automation have pre-programmed party modes where the lights create unique color patterns. From Mardi Gras to Independence Day themes, you can find something to suit your pool party vibes.”
Find what floats your boat
Christy, from the Happy Family Blog, suggests “having lots of fun colorful floats. Floats are a fun way to set the mood for the party. We also love to use them to serve things like popsicles or drinks on a bed of ice.”
Curious about the best pool floats? Find Christy’s picks on her blog.
Help yourself to some helium
“As summer heats up, you’ll need eye-catching décor and party supplies to create the perfect poolside event,” explains Dianne Pavek of Mayflower Distributing.
Encouraging creativity, Dianne went on to say, “Air-filled latex balloons can be assembled into countless displays! Colorful balloon animals, like dogs or swans, can float in the pool. Balloon columns and organic arches can also help showcase your event.”
Prioritize safety
“Pool party safety should be your number one concern,” explains Abe Breuer, CEO of John To Go and VIP To Go.
“You want people to be safe. Not only do unsafe conditions and accidents put people at risk, but they also eliminate the ability to have carefree fun. Try to get a trained lifeguard to attend the party. If it’s more of a demure, adult party, just having a licensed lifeguard is enough.”
Abe went on to explain how you should take extra precautions with youths, “If you’ll be having teens or young kids over, you may want to hire a lifeguard who has experience in keeping that demographic compliant with safety rules. Other adults, who are not attending for the express purpose of lifeguarding duties, may become distracted by the festive goings-on and/or the social aspect. Also, make sure that you have all the proper safety gear needed in a pool area such as non-slip grids, flotation devices, a first aid kit, a designated phone for emergencies and well-lit areas.
Abe wrapped up his thoughts by saying, “Finally, keep temps and sun exposure in mind. A pool party is not just about water safety. Make sure you have plenty of water on hand to keep dehydration at bay and set up a sunscreen station so all your guests can slather themselves in a coverup to prevent heat burns.”
Additional pool party safety tips:
Prohibit headfirst diving
Don’t allow tandem jumping
Prohibit breath-holding games
Avoid pool drains
Make sure at least one person attending the party is sober
If you’re in a communal pool, try to limit your party to one area
If you’re going to be hosting pool parties regularly, get CPR certified
Enjoy the warm weather
When it comes to beating the heat on a long summer day, nothing beats a pool party with your friends. Follow the advice above and enjoy a summer filled with the most memorable pool parties of your life.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Summer, summer, summertime. There’s really nothing like it. And, on a scorching summer day, what could be better than kicking back by the pool, catching a few rays and riding out the heat with a few of your closest friends?
So, you want to throw a pool party that everyone will remember? Follow the expert tips below and set the new standard for summertime fun by throwing the most memorable pool party of the year.
Test your pool water
“Remember to test your pool water in the days leading up to your pool party,” urges a pool expert at Leslie’s.
This is “to ensure it’s safe and healthy for all. If your pool water isn’t clean, clear and sanitized, the pool party will not be fun for anyone!”
“Once you’re ready to party, you can add outdoor furniture, waterproof speakers, refreshments, snacks, games and cool pool floats to your backyard and pool!”
Create a welcoming ambiance
“Set the mood for your nighttime pool party with an impressive light show,” suggests Hannah Eubank of Pool Sharp TX.
“Most pool lights with automation have pre-programmed party modes where the lights create unique color patterns. From Mardi Gras to Independence Day themes, you can find something to suit your pool party vibes.”
Find what floats your boat
Christy, from the Happy Family Blog, suggests “having lots of fun colorful floats. Floats are a fun way to set the mood for the party. We also love to use them to serve things like popsicles or drinks on a bed of ice.”
Curious about the best pool floats? Find Christy’s picks on her blog.
Help yourself to some helium
“As summer heats up, you’ll need eye-catching décor and party supplies to create the perfect poolside event,” explains Dianne Pavek of Mayflower Distributing.
Encouraging creativity, Dianne went on to say, “Air-filled latex balloons can be assembled into countless displays! Colorful balloon animals, like dogs or swans, can float in the pool. Balloon columns and organic arches can also help showcase your event.”
Prioritize safety
“Pool party safety should be your number one concern,” explains Abe Breuer, CEO of John To Go and VIP To Go.
“You want people to be safe. Not only do unsafe conditions and accidents put people at risk, but they also eliminate the ability to have carefree fun. Try to get a trained lifeguard to attend the party. If it’s more of a demure, adult party, just having a licensed lifeguard is enough.”
Abe went on to explain how you should take extra precautions with youths, “If you’ll be having teens or young kids over, you may want to hire a lifeguard who has experience in keeping that demographic compliant with safety rules. Other adults, who are not attending for the express purpose of lifeguarding duties, may become distracted by the festive goings-on and/or the social aspect. Also, make sure that you have all the proper safety gear needed in a pool area such as non-slip grids, flotation devices, a first aid kit, a designated phone for emergencies and well-lit areas.
Abe wrapped up his thoughts by saying, “Finally, keep temps and sun exposure in mind. A pool party is not just about water safety. Make sure you have plenty of water on hand to keep dehydration at bay and set up a sunscreen station so all your guests can slather themselves in a coverup to prevent heat burns.”
Additional pool party safety tips:
Prohibit headfirst diving
Don’t allow tandem jumping
Prohibit breath-holding games
Avoid pool drains
Make sure at least one person attending the party is sober
If you’re in a communal pool, try to limit your party to one area
If you’re going to be hosting pool parties regularly, get CPR certified
Enjoy the warm weather
When it comes to beating the heat on a long summer day, nothing beats a pool party with your friends. Follow the advice above and enjoy a summer filled with the most memorable pool parties of your life.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Wash trading is a practice which involves entering into securities transactions for the express purpose of giving the appearance that a trade has taken place although their portfolio has not substantially changed. Also referred to as round-trip trading, wash trading is a prohibited activity under the Commodity Exchange Act (CEA) and the Securities Exchange Act of 1934.
In some cases, wash trading is a direct attempt at market manipulation. In others, wash trading may result from a lack of investor knowledge. This may be the case with wash sales, in which an investor sells one financial instrument then replaces it with a similar one right away. It’s important to understand the implications of making a wash trade and what one looks like in action.
What Is Wash Trading?
Wash trading occurs when an investor buys and sells the same or a similar security investment at the same time. The Internal Revenue Service (IRS) also refers to this as a wash sale, since buying the same security cancels out the sale of that security. It’s also called round-trip trading, since you’re essentially ending where you began — with shares of the same security in your portfolio.
Wash trades can be used as a form of market manipulation. Investors can buy and sell the same securities in an attempt to influence pricing or trading activity. The goal may be to spur buying activity to send prices up or encourage selling to drive prices down.
Investors and brokers might work together to influence trading volume, usually for the financial benefit of both sides. The broker, for example, may benefit from collecting commissions from other investors who want to purchase a stock being targeted for wash trading. The investor, on the other hand, may realize gains from the sale of securities through price manipulation.
Wash trading can be a subset of insider trading, which requires the parties involved to have some special knowledge about a security that the general public doesn’t. If an investor or broker possesses insider knowledge they can use it to complete wash trades.
How Does Wash Trading Work?
On the surface level, a wash trade means an investor is buying and selling shares of the same security at the same time. But the definition of wash trades goes one step further and takes the investor’s intent (and that of the broker they may be working with) into account. There are generally two conditions that must be met for a wash trade to exist:
• Intent. The intent of the parties involved in a wash trade (i.e. the broker or the investor) must be that at least one individual involved in the transaction must have entered into it specifically for that purpose.
• Result. The result of the transaction must be a wash trade, meaning the investors bought and sold the same asset was bought and sold at the same time or within a relatively short time span for accounts with the same or common beneficial ownership.
Beneficial ownership means accounts that are owned by the same individual or entity. Trades made between accounts with common beneficial ownership may draw the eye of financial regulators, as they can suggest wash trading activity is at work.
A telling indicator of wash trading activity is the level of risk conveyed to the investor. If a trade doesn’t change their overall market position in the security or expose them to any type of market risk, then it could be considered a wash.
Wash trades don’t necessarily have to involve actual trades, however. They can also happen if investors and traders appear to make a trade on paper without any assets changing hands. 💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.
Example of a Wash Trade
Here’s a simple wash trade example:
Say an investor who’s actively involved in day trading owns 100 shares of ABC stock and sells those shares at a $5,000 loss on September 1. On September 5, they purchase 100 shares of the same stock, then resell them for a $10,000 gain. This could be considered a wash trade if the investor engaged in the trading activity with the intent to manipulate the market or to unfairly claim a tax deduction for the loss.
Is Wash Trading Illegal?
Yes. The Commodity Exchange Act prohibits wash trading. Prior to the passage of the Act, traders commonly used wash trading to manipulate markets and stock prices. The Commodity Futures Trade Commission (CFTC) also enforces regulations regarding wash trading, including guidelines that bar brokers from profiting from wash trade activity.
The IRS has rules of its own regarding wash trades. The rules disallow investors from deducting capital losses on their taxes from sales or trades of stocks or other securities that are the result of a wash sale. Under the IRS rules, a wash sale occurs when you sell or trade stocks at a loss and within 30 days before or after the sale you:
• Purchase substantially identical stock or securities
• Acquire substantially identical stock or securities in a fully taxable trade
• Acquire a contract or option to buy substantially identical stock or securities, or
• Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA
Wash sale rules also apply if you sell stock and your spouse or a corporation you control buys substantially identical stock. When a wash sale occurs, you’re no longer able to claim a tax deduction for those losses.
So, in short, yes, wash trading is illegal.
Difference Between Wash Trading & Market Making
Market making and wash trading are not the same thing. A market maker is a firm or individual that buys or sells securities at publicly quoted prices on-demand, and a market maker provides liquidity and facilitates trades between buyers and sellers. For example, if you’re trading through an online broker you’re using a market maker to complete the sale or purchase of securities.
Recommended: What Is a Brokerage Account?
Market making is not market manipulation. A market maker is, effectively, a middleman between investors and the markets. While they do profit from their role by maintaining spreads on the stocks they cover, this is secondary to fulfilling their purpose of keeping shares and capital moving. Without market makers, trades would take longer to execute and the markets could become sluggish.
How to Detect & Avoid Wash Trading
The simplest way to avoid wash trading as an investor is to be aware of what constitutes a wash trade or sale. Again, this can mean the intent to manipulate the markets by placing similar trades within a short time frame, or it can mean inadvertently executing a wash sale because you’re not familiar with the rules.
In the latter case, you can avoid wash trading or wash sales by being mindful of the securities you’re buying and selling and the time frame in which those transactions are completed. So selling XYZ stock at a loss, then buying it again 10 days later to sell it for a profit would likely constitute a wash sale, if you executed the trade in an attempt to be able to deduct the initial loss.
It’s also important to understand how the 30 days period works for timing wash sales. The 30 day rule extends to the 30 days prior to the sale and 30 days after the sale. So effectively, you could avoid the wash sale rule by waiting 61 days to replace assets that you sold in your portfolio to be on the safe side. 💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.
Wash Trading in Crypto Trading
Cryptocurrency can be a target for wash-trading activity. In the EOS case, wash trades were suspected of being used as a means of driving up investor interest surrounding the cryptocurrency during its initial offering. High-frequency trading has also been a target of scrutiny, as some believe it enables wash trading in the crypto markets. Whether wash trading rules and regulations specifically apply to crypto, however, is a bit murky.
The Takeaway
Wash trading involves selling certain securities and then replacing them in a portfolio with identical or very similar securities within a certain time period. This is done so as to avoid making substantial changes in your portfolio. Wash trading is illegal in practice but it’s also avoidable if you’re investing consciously and with a strategy in place.
Understanding when wash sale rules apply can help you to stay out of trouble with the IRS. If you’re unclear about it, you can consult with a financial professional for guidance.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
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SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
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For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Barrier options are complex derivative products that have payoffs based on whether an underlying asset crosses a pre-specified price threshold.
There are several types of barrier options, and they are used to hedge a portfolio or simply to speculate on an underlying asset’s price change, much like regular call and put options. But due to the restriction of the barrier, premiums tend to be lower when initiating the trade.
What Is a Barrier Option?
Barrier options are just like regular options with the inclusion of an additional barrier to the regular option payoff.
Beginners start trading options with purchases of simple puts and calls. Options trading quickly turns complex as you dive into writing options, combination strategies, and exotic options.
In contrast to barrier options, plain-vanilla options typically have some value as the asset approaches and then crosses the strike price. Before an option is in the money, the value is known as time or extrinsic value.
Once an option is in the money, the option price is a combination of intrinsic value and extrinsic value.
A barrier option’s payoff (or lack thereof) is predicated by the underlying asset crossing some barrier price determined upon option initiation. Once the barrier is crossed, the nature of the option changes.
In some cases, the option is “normal” but after crossing the barrier it becomes worthless forever, simply by crossing the barrier. Other barrier options begin as worthless (or close to it), but revert to a normal option once they cross the barrier, even if they later cross the barrier again.
These products can be used to develop simple or complex strategies in options trading.
💡 Quick Tip: If you’re an experienced investor and bullish about a stock, purchasing call options (rather than the stock itself) can allow you to take the same position, with less cash outlay. It is possible to lose money trading options, if the price moves against you.
How Barrier Options Work
First, recognize that a barrier option is an exotic option — it comes with added rules and features compared to the more common American-style and European-style flavors. A barrier option is also path-dependent, much like non-exotic options, in that its value is determined by changes in the underlying asset’s market price.
A key feature of a barrier option is when it can be exercised. Depending on the barrier option pricing terms, its value activates or becomes worthless at that crossover price.
Pros and Cons of Barrier Options
Barrier options work like puts and calls, but they feature more restrictions than standard American or European options. That leads to advantages and disadvantages for both the holder and seller of a barrier option.
Barrier options’ pricing terms often dictate how and when traders of these derivatives might use them in their trading strategies.
In general, there is less risk for the barrier option seller and more restrictions put on the owner. Both parties, however, should be aware that there is less liquidity in barrier option markets compared to more actively traded standard options markets.
Pros
Cons
Lower option premiums means a cheaper way to trade for option buyers
Less chance to exercise due to restrictive terms (for the holder)
Reduced risk to the option writer
Poor liquidity versus plain vanilla puts and calls
Can be more customized than standard options
Added complexity makes barrier options tougher to understand for new traders
Finally, user-friendly options trading is here.*
Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.
Knock-In and Knock-Out Barrier Options
Knock-in and knock-out barrier options are the two common types of barrier options. Knock-in options are unable to be exercised until the underlying security crosses a trigger point, deemed the barrier price.
Knock-out options can be exercised immediately, but they turn inactive (worthless) at the time of breaching the barrier price. It can be helpful to see how these products work via barrier options examples.
Knock-In
Knock-In Option Example
Let’s say you buy a knock-in barrier call option featuring a strike price of $100 and a barrier of $110 while the underlying security trades at $90. The option is not exercisable until the underlying asset’s price climbs above the $110 barrier.
The option owner pays a premium but that premium is lower than for a regular call. Why?
Two reasons:
1. The barrier option won’t be immediately exercisable and is worth close to zero until the underlying asset crosses the barrier price.
2. The barrier price typically exceeds the strike price for calls and is below the strike price for puts. That means the likelihood to have any intrinsic value is lower because the option must first breach the barrier. A regular option has intrinsic value once it exceeds the strike price.
However, after the barrier is breached the barrier option will trade like any other standard call option with a strike of $100, no matter what the price does subsequent to breaching the barrier. If the barrier is not broken, the seller keeps the premium.
Knock-in barrier options are broken down further into up-and-in or down-and-in options.
The call above is an up-and-in barrier option example, the asset price must move up for the option to be exercisable. Down-and-in means the price must move down to the barrier before it is exercisable and typically is used for barrier put options.
Knock-Out
Knock-Out Option Example
For a knock-out barrier option, we’ll assume you bought an up-and-out call option with a barrier of $50 and a strike of $40 while the underlying asset trades at $35. If the asset rallies to $50, the option will cease to exist and be worth nothing.
A knock-out option is worthless even if the underlying asset’s price touches the barrier price for only a moment before falling back.
The call above is immediately exercisable and will always trade at a lower price than a regular call. Why?
Reasons include:
1. If the underlying asset is far from the barrier, the option will be cheaper than a regular option as it is still at some small risk of breaching the barrier and being worthless.
2. As the underlying asset moves closer to the barrier the option will move towards zero as the risk of crossing the barrier increases dramatically.
Knock-out barrier options are broken down further into up-and-out or down-and-out options. The difference is which way the price must move to breach the barrier and become worthless.
As you can see, barrier options pricing puts a spin on the usual calls and puts you might be familiar with.
Types of Barrier Options
Beyond knock-in and knock-out options, there are a few other barrier option types to learn about.
Rebate Barrier Options
Rebate barrier options have provisions that allow the holder to retain some value of the option contract even if the barrier price is not reached. It might be a percentage of the premium paid from the execution of the trade.
This might be seen as a less risky version of barrier options as it is not an all-or-nothing approach.
Turbo Warrant Barrier Options
Turbo warrant barrier options are traded more actively in overseas markets. They are a category of down-and-out options and feature high leverage.
While they can be risky, turbo warranty barrier options are also less volatile than other types.
Parisian Option
Both time and price are key variables with Parisian barrier options. They work similarly to Asian options. They are different in that the underlying security’s price must not only cross the barrier but stay above that price for a predetermined time period before the contract is in effect.
The Takeaway
Barrier options offer traders another means to hedge a portfolio or speculate on an underlying asset. This type of option is exotic, meaning it is more complex than plain vanilla puts and calls.
With barrier “in” options, the call or put does not go into effect until a barrier price level is hit while “out” options are active until the barrier price is touched.
Barrier options give investors more flexibility and customization at a cheaper price, but they can be more restrictive and less liquid than other options.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
With SoFi, user-friendly options trading is finally here.
FAQ
Are barrier options American or European?
Barrier options are complex exotic options different from the two common styles of options: American and European. While American-style options can be exercised at any time, before and at expiration, and while European-style options can be exercised only at expiration, barrier options are exercisable only after the barrier price is reached.
How are barrier options valued?
Barrier options have a path-dependent value since their worth is based on the underlying asset’s price movements. It is only when the underlying price crosses the barrier price that the option has value and can be exercised. If that predetermined barrier option price is never reached, then the option is worthless with a typical knock-out option. Knock-in options are non-exercisable until they reach the barrier price.
Can you replicate barrier options?
Some strategies can replicate the structure and payoff profile of barrier options. Many of these analyses were performed by academics over recent decades. The goal is often to produce sound portfolio hedging techniques.
Photo credit: iStock/nensuria
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Though the National Association of Realtors is not out of the legal woods yet, the trade group does have reason to celebrate. A federal court judge on Wednesday dismissed all antitrust allegations made by REX Real Estate against NAR and Zillow.
The remaining claims in the case are all against Zillow, meaning that NAR is no longer a defendant in the case and will not have to participate if it heads to trial next month as scheduled.
In his order dismissing the claims, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that the “Court concludes that REX has failed to present evidence of the conspiracy alleged in its Amended Complaint, namely, a purported agreement between NAR, Zillow, and non-party MLSs to segregate, conceal, and demote non-MLS listings on Zillow’s websites and mobile platforms.”
The antitrust claims against NAR and Zillow were dismissed with prejudice.
In the order, Zilly noted that NAR’s No-Commingling Rule was optional and that about 29% of Realtor-affiliated MLSs had not adopted the rule, without any repercussions from NAR. On its own, the rule “does not constitute direct or circumstantial evidence of an anticompetitive agreement between NAR and Zillow,” Zilly wrote.
“The undisputed evidence in this action shows that neither NAR nor its affiliated MLSs were involved in Zillow’s decision to implement the challenged two-tab display that allegedly drove REX out of business,” he added.
Zilly also pointed out the unlike other brokerage, Zillow continued to display REX’s listings.
“The evidence demonstrates that instead of precluding REX’s listings entirely, like websites such as Redfin did … Zillow expended significant time and resources to ensure that REX’s and other non-MLS listings would remain on its platforms, albeit under a separate tab,” the order reads.
Originally filed by REX in March 2021, the lawsuit alleges that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”
Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service (MLS) practices.
In January 2022, NAR filed a countersuit claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed in late April 2022.
In mid-May 2022, REX ceased its brokerage operations.
A little over a year later, in mid-June 2023, the three parties involved in the suit, all filed motions for summary judgment on at least some issues, if not the entire lawsuit.
Earlier this month, Zilly ruled on other claims in the lawsuit, allowing three of REX’s claims against Zillow to head to trial: a false advertising claim under the Lanham Act, a claim for unfair or deceptive trade practices under Washington’s Consumer Protection Act (CPA) and a claim alleging defamation.
Although Zillow’s legal battle against REX is not over, the company was pleased with Wednesday’s ruling.
“Today’s ruling is a significant victory for Zillow in this case. The court agreed REX’s antitrust claim was without merit and lacked any evidence to back it up,” Will Lemke, Zillow’s manager of corporate communications, wrote in an email. “This ruling affirms Zillow’s business decisions were squarely focused on improving the data on our website for consumers. With REX’s central argument tossed from this case, we believe the public now sees this case for what it is: REX seized upon another company’s website design change to hide its own business failings.”
The lawsuit is scheduled to head to trial on September 18. NAR and attorney for REX did not return a request for comment by the time of publication.