View source for Better.com

{{Short description|American mortgage origination firm}}
{{use mdy dates|date=December 2021}}
{{Infobox company
| name = Better Home & Finance Holding Company
| logo = Better wordmark 2022.svg
| logo_size =
| type = [[Public company|Public]]
| traded_as = {{NASDAQ|BETR}}
| industry = [[Financial services]]
| founded = {{Start date and age|2014|02|24}}
| founder = [[Vishal Garg (businessman)|Vishal Garg]]
| hq_location = [[3 World Trade Center]], [[New York City]], US
| key_people = {{ubl|[[Vishal Garg (businessman)|Vishal Garg]] ([[Chief executive officer|CEO]])|Paula Tuffin ([[Chief compliance officer|CCO]])|Kevin Ryan ([[Chief financial officer|CFO]])}}
| services = [[Broker]] for [[mortgage origination]], [[title insurance]], and [[home insurance]]
| revenue = {{decrease}} $76 million (2023)
| net_income = {{increase}} -$536 million (2023)
| assets = {{decrease}} $905 million (2023)
| equity = {{increase}} $122 million (2023)
| owner = {{nowrap|[[Vishal Garg (businessman)|Vishal Garg]] (95 million shares)<BR>Activant Capital Group (61 million shares)<BR>[[SoftBank Vision Fund]] (55 million shares)<BR>Pine Brook Capital (49 million shares)<BR>[[Novator Partners]] (48 million shares)<BR>Ontario Pension Plan (29 million shares)<BR>Riaz Valani (27 million shares)<BR>[[L Catterton]] (23 million shares)}}
| website = {{URL|https://better.com/}}
| footnotes = <ref>{{Cite news | url=https://www.sec.gov/Archives/edgar/data/1835856/000162828024017132/definitiveproxystatement.htm | title=DEF 14A: Other definitive proxy statements | publisher=[[U.S. Securities and Exchange Commission]] | date=April 22, 2024}}</ref><ref>{{Cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1835856/000162828024015134/aurcu-20231231.htm | title=Better Home & Finance Holding Company 2023 Form 10-K Annual Report | publisher=[[U.S. Securities and Exchange Commission]] | date=April 8, 2024}}</ref><ref>{{Cite web | url=https://icis.corp.delaware.gov/ecorp/entitysearch/NameSearch.aspx | title=Department of State: Division of Corporations | work=[[Delaware]]}}</ref>
}}
'''Better Home & Finance Holding Company''' [[doing business as]] '''Better''' or '''Better.com''', headquartered in New York City, provides [[mortgage origination]] and related services such as [[title insurance]] and [[home insurance]] online in the United States and United Kingdom.<ref>{{Cite web | url=https://money.com/better-mortgage-mortgage-lenders-review/ | title=Better Mortgage Review | first=Andrea | last=Agostini Ferrer | work=[[Money (magazine)|Money]] | date=October 11, 2022}}</ref>
Its largest source of business is an integrated relationship with [[Ally Financial]], by which Better sells, processes, [[Mortgage underwriting|underwrites]] and closes Ally's mortgages, while Ally retains control of marketing, advertising and loan pricing.<ref name=partners>{{Cite news | url=https://www.inman.com/2023/08/29/nearly-half-of-betters-mortgage-business-now-comes-from-partners/ | title=Nearly half of Better's mortgage business now comes from partners | first=MATT | last=CARTER | work=[[Bradley Inman]] | date=August 29, 2023 | url-access=registration}}</ref> Better sells mortgages to approximately 30 secondary mortgage market investors, including [[Fannie Mae]] and [[Wells Fargo]]. The company secures [[lead generation]] from [[personal finance]] companies such as [[American Express]], [[Credit Karma]], and [[NerdWallet]].<ref name=Racist/><ref name=partners/>
==History==
In February 2014, [[Vishal Garg (businessman)|Vishal Garg]] founded the company after he and his wife had a negative experience obtaining a mortgage to buy their first home.<ref>{{Cite news | title=Digital mortgage company Better.com closes $160 million in funding | last=Howley | first=Kathleen | url=https://www.housingwire.com/articles/49877-digital-mortgage-company-bettercom-closes-160-million-in-funding/ | work=HousingWire |date=2019-08-19}}</ref>
In 2016, the company launched Better Mortgage and was approved to be a [[Fannie Mae]] seller/servicer.<ref name=fired>{{Cite news | last1=Aryan | first1=Aashish | last2=Mukul | first2=Pranav | title=Explained: Better.com, the mortgage company that fired over 900 employees over Zoom call |url=https://indianexpress.com/article/explained/vishal-garg-better-dot-com-zoom-call-7660386/ | work=[[The Indian Express]] | date=December 7, 2021}}</ref>
In April 2019, the company partnered with [[Ally Financial]] to operate its mortgage platform.<ref>{{Cite press release | url=https://www.prnewswire.com/news-releases/ally-financial-partners-with-bettercom-to-create-end-to-end-digital-mortgage-experience-300834706.html | title=Ally Financial Partners with Better.com to Create End-to-End Digital Mortgage Experience | publisher=[[PR Newswire]] | date=April 18, 2019}}</ref> The number of people from traditionally [[underrepresented group]]s buying homes through Better's mortgage lending platform increased significantly in 2019, a development that ''[[The New York Times]]'' suggested was linked to the company's digital processes and minimal reliance on human brokers.<ref name=Racist>{{cite news | url=https://www.nytimes.com/2020/09/18/business/digital-mortgages.html | last=Miller | first=Jennifer |title=Is an Algorithm Less Racist Than a Loan Officer? |work=[[The New York Times]] | date=September 18, 2020 | url-access=limited}}</ref><ref>{{Cite news | last=Jeans | first=David | title=Mortgages, Fraud Claims And 'Dumb Dolphins': A Tangled Past Haunts Better.com CEO Vishal Garg | url=https://www.forbes.com/sites/davidjeans/2020/11/20/mortgages-fraud-claims-and-dumb-dolphins-a-tangled-past-haunts-bettercom-ceo-vishal-garg/ | work=[[Forbes]] | date=November 20, 2020 | url-access=limited}}</ref>
In July 2021, Better acquired Trussle, a UK digital mortgage broker, for $9 million.<ref>{{Cite news | last=de León | first=Riley |title=Digital mortgage lender Better acquiring Goldman Sachs-backed fintech ahead of public listing | url=https://www.cnbc.com/2021/07/12/digital-mortgage-lender-better-acquiring-goldman-sachs-backed-fintech.html | work=[[CNBC]] | date=July 12, 2021}}</ref> In September 2021, Better acquired Property Partner, a London-based [[crowdfunding]] platform.<ref>{{Cite news | last=Lawler | first=Ryan | title=Better.com acquires UK-based Property Partner ahead of SPAC close | url=https://techcrunch.com/2021/09/09/better-acquires-property-partner/ | work=[[TechCrunch]] | date=September 9, 2021}}</ref>
In May 2022, Harit Talwar was hired as [[chairperson]].<ref>{{Cite news | last=Reyes | first=Max | title=Better Hires Ex-Goldman Partner Talwar With Eyes on Listing | work=[[Bloomberg News]] | url=https://www.bloomberg.com/news/articles/2022-05-09/better-hires-ex-goldman-marcus-head-talwar-with-eyes-on-listing | date=May 9, 2022 | url-access=subscription}}</ref>
In February 2023, the company announced a deal with [[Amazon (company)|Amazon]] whereby Amazon employees are able to pledge their stock as [[Collateral (finance)|collateral]] for a loan to cover the [[down payment]] on a house purchase, albeit at a slightly higher interest rate.<ref>{{Cite news | url=https://www.wsj.com/articles/amazon-employees-will-be-able-to-use-stock-as-collateral-for-home-loans-183b6acc | title=Amazon Employees Will Be Able to Use Stock as Collateral for Home Loans | first=Dana | last=Mattioli | work=[[The Wall Street Journal]] | date=February 28, 2023 | url-access=subscription}}</ref>
In August 2023, the company became a [[public company]] via a merger with a [[special-purpose acquisition company]] that included an investment from [[SoftBank Vision Fund]]; shares plummeted immediately after the merger.<ref name=combination>{{Cite press release | url=https://www.businesswire.com/news/home/20230823015400/en/Better-Home-Finance-Announces-Closing-of-Business-Combination | title=Better Home & Finance Announces Closing of Business Combination | publisher=[[Business Wire]] | date=August 23, 2023}}</ref><ref>{{Cite news | url=https://techcrunch.com/2023/08/27/better-com-had-a-miserable-com-public-debut/ | title=Better.com’s public market debut was Miserable.com | first1=Mary Ann | last1=Azevedo | first2=Christine | last2=Hall | work=[[TechCrunch]] | date=August 27, 2023}}</ref><ref>{{cite news |title=After setbacks, Better goes public with plan to scale 'greater heights' |url=https://www.inman.com/2023/08/23/after-setbacks-better-goes-public-with-plan-to-scale-greater-heights/ | last=Carter |first=Matt | work=[[Bradley Inman]] |date=August 23, 2023 | url-access=registration}}</ref>
In June 2022, a former senior executive at Better filed a lawsuit alleging that the company misled investors in its filings. After an investigation by the [[U.S. Securities and Exchange Commission]] found no issues, the complaint was withdrawn and the company won a judgment against the filer.<ref>{{Cite news | url=https://www.wsj.com/articles/sec-probes-better-com-after-lawsuit-alleges-company-misled-investors-11657832444 | title=SEC Probes Better.com After Lawsuit Alleges Company Misled Investors | first=Joseph | last=Pisani | work=[[The Wall Street Journal]] | date=July 14, 2022 | url-access=subscription}}</ref><ref>{{cite news | last=Nunes | first=Flavia | title=Former top executive withdraws lawsuit against Better.com and its founder | url=https://www.housingwire.com/articles/former-top-executive-withdraws-lawsuit-against-better-com-and-its-founder/ | work=HousingWire |date=May 8, 2024}}</ref>
===Layoffs and controversial comments by CEO===
In December 2021, Garg laid off 900 employees by [[videoconference]] and locked their electronic devices from accessing company material.<ref>{{Cite news | last=Maruf | first=Ramishah | title=Better.com CEO fires 900 employees over Zoom | url=https://www.cnn.com/2021/12/05/business/better-ceo-fires-employees/index.html | work=[[CNN]] | date=December 5, 2021}}</ref><ref>{{Cite news | title=Vishal Garg: US boss fires 900 employees over Zoom | url=https://www.bbc.com/news/business-59554585 | first=Beth | last=Timmins | work=[[BBC News]] | date=December 7, 2021}}</ref><ref>{{cite news | title=CEO who fired hundreds on Zoom call say he's worked hard to be kinder | url=https://www.businessinsider.com/better-com-ceo-vishal-garg-fire-worker-zoom-kinder-empathetic-2023-8/ | first=Kwan Wei Kevin | last=Tan | work=[[Business Insider]] | date=August 24, 2023}}</ref><ref>{{Cite news | last=Graziosi | first=Graig | date=December 6, 2021 | title=Who is Vishal Garg, the CEO that fired 900 employees over Zoom call? | url=https://www.independent.co.uk/news/world/americas/vishal-garg-better-ceo-fired-b1970887.html | work=[[The Independent]] | archive-url=https://web.archive.org/web/20211206204342/https://www.independent.co.uk/news/world/americas/vishal-garg-better-ceo-fired-b1970887.html | archive-date=December 6, 2021 | url-status=live}}</ref><ref>{{cite news |url=https://www.forbes.com/sites/davidjeans/2023/08/25/better-mortgage-ceo-vishal-garg-spac/ |last=Jeans |first=David |title=Better.com CEO Who Fired 900 People On Zoom Is Struggling To Keep His Company Afloat |work=[[Forbes]] | url-access=limited}}</ref> Garg also made comments to employees that were deemed "unruly", telling employees that he "hired the wrong people" and referring to employees as "slow," "dumb," and "embarrassing".<ref>{{Cite news | title=Better.com's morale and SPAC merger success in question after CEO's unruly comments | url=https://fortune.com/2021/12/06/better-ceo-vishal-garg-lay-offs-spac-merger/ | first=JESSICA | last=MATHEWS | work=[[Fortune (magazine)|Fortune]] | date=December 6, 2021 | url-access=subscription}}</ref> After much criticism, Garg took approximately a month off, returning in January 2022.<ref>{{cite news | last=Goldberg | first=Emma | title=Better.com's C.E.O. is 'taking time off' after firing 900 workers over Zoom. | url=https://www.nytimes.com/2021/12/10/business/economy/better-ceo-zoom-firing.html | work=[[The New York Times]] | date=December 10, 2021 | url-access=limited}}</ref><ref>{{cite news | last1=Goldberg | first1=Emma | title=Better.com's founder returns as C.E.O. after firing 900 workers on Zoom. | url=https://www.nytimes.com/2022/01/18/business/better-ceo-vishal-garg.html | work=[[The New York Times]] |date=January 18, 2022 | url-access=limited}}</ref><ref>{{cite news | title=He's Baaaack! Ax-Wielding Better.com Founder Returns as CEO |url=https://www.thedailybeast.com/bettercom-founder-vishal-garg-returns-as-ceo-a-month-after-brutal-mass-firing |last=Kirsch |first=Noah |work=[[The Daily Beast]] | date=January 18, 2022}}</ref>
On March 8, 2022, the company announced that an additional 3,000 people, or approximately one-third of employees, were laid off.<ref name=fired/><ref>{{cite news | last=Valinsky | first=Jordan | title=Better, after firing 900 employees over Zoom, is laying off 3,000 more workers | url=https://www.cnn.com/2022/03/08/business/better-mortgage-layoffs/index.html | work=[[CNN]] | date=March 8, 2022}}</ref><ref>{{cite news | url=https://www.nytimes.com/2022/03/08/business/better-mortgage-lender-layoffs.html | last=Goldberg | first=Emma | title=Better.com, a mortgage lender and early pandemic winner, announces more layoffs. The company will let go more than 3,000 employees three months after gaining notoriety for firing 900 workers in a Zoom call. | work=[[The New York Times]] | date=March 8, 2022 | url-access=limited}}</ref> Some employees learned of their layoff when they received severance pay, before Better.com told them they were to be laid off.<ref>{{cite news | last=Azevedo | first=Mary Ann |title=Better.com employees learned of layoffs when severance checks appeared in payroll app | url=https://techcrunch.com/2022/03/08/better-com-employees-learned-of-layoffs-when-severance-checks-appeared-in-payroll-app/ |work=[[TechCrunch]] | date=March 8, 2022}}</ref>
The company instituted another round of layoffs in April 2023; in this round, affected employees received individual calls, a [[severance package]] that included a minimum of 60 days compensation, up to three months of health coverage through [[Consolidated Omnibus Budget Reconciliation Act of 1985|COBRA]], and assistance in their job searches.<ref>{{Cite news | url=https://www.nytimes.com/2022/04/19/business/bettercom-announces-more-layoffs-citing-mortgage-market-turbulence.html | title=Better.com announces more layoffs, citing mortgage market turbulence. | first=Emma | last=Goldberg | work=[[The New York Times]] | date=April 19, 2022}}</ref>
In June 2022, three senior executives left the company.<ref>{{cite news | title=Better.com loses three more senior executives, including SVP and VP of sales | url=https://techcrunch.com/2022/06/21/better-com-loses-three-more-senior-executives-including-svp-and-vp-of-sales/ | last=Azevedo | first=Mary Ann | work=[[TechCrunch]] | date=June 21, 2022}}</ref>
In August 2022, a list of 250 or more US-based employees who were about to be terminated in another round of layoffs was leaked internally, leading to the termination of the employees who leaked the information.<ref>{{Cite news | title=Better.com conducts fourth layoff in less than 9 months | url=https://techcrunch.com/2022/08/25/better-com-layoffs-digital-mortgage/ | first=Mary Ann | last=Azevedo | work=[[TechCrunch]] | date=August 25, 2022}}</ref> The company was accused of circumventing the [[Worker Adjustment and Retraining Notification Act of 1988]] by laying people off in groups of 249 employees, under the 250 minimum that triggers the act.<ref>{{Cite news | url=https://techcrunch.com/2022/09/28/better-com-employees-detail-their-experiences/ | title=Inside the human cost of Better.com’s brutal layoffs | first1=Mary Ann | last1=Azevedo | first2=Christine | last2=Hall | work=[[TechCrunch]] | date=September 28, 2022}}</ref>
In June 2023, more employees were laid off, bringing total layoffs since 2021 to 4,000. The in-house real estate broker team was eliminated.<ref>{{cite news |url=https://www.livemint.com/companies/news/bettercom-ceo-vishal-garg-announces-fresh-round-of-layoffs-shut-down-real-estate-unit-11686398886154.html |title=Better.com CEO Vishal Garg announces fresh round of layoffs |work=[[Mint (newspaper)|Mint]] |date=June 10, 2023}}</ref><ref>{{Cite news | url=https://techcrunch.com/2023/06/09/better-com-lays-off-real-estate-team-and-shutters-business-unit/ | title=Better.com lays off real estate team and shutters business unit | first=Mary Ann | last=Azevedo | work=[[TechCrunch]] | date=June 9, 2023}}</ref><ref>{{Cite news | url=https://www.inman.com/2023/06/08/better-com-lays-off-in-house-real-estate-agents-nationwide/ | title=Better.com lays off in-house real estate agents nationwide | first=MATT | last=CARTER | work=[[Bradley Inman]] | date=June 8, 2023 | url-access=registration}}</ref> The company had 150 agents as of 2021 and received 20% of agents' commissions in exchange for [[lead generation]].<ref>{{Cite news | url=https://therealdeal.com/national/2023/06/08/another-round-of-better-com-layoffs-hits-in-house-agents/ | title=Another round of Better.com layoffs hits in-house agents | work=[[The Real Deal (magazine)|The Real Deal]] | date=June 8, 2023 | url-access=limited}}</ref>
==Awards and recognition==
The company has received the following awards and recognition:<ref name=combination/>
* Ranked 1st on the Top Startups List for 2021 and 2020 by [[LinkedIn]]<ref>{{Cite web | url=https://www.linkedin.com/pulse/linkedin-top-startups-2020-50-us-companies-rise-jessi-hempel/ | title=LinkedIn Top Startups 2020: The 50 U.S. companies on the rise. | first=Jessi | last=Hempel | work=[[LinkedIn]] | date=September 22, 2020}}</ref>
* Ranked 1st on the list of Best Small and Medium Workplaces in New York by ''[[Fortune (magazine)|Fortune]]''
* Ranked 15th on the Disruptor 50 2020 list by [[CNBC]]<ref>{{Cite web | url=https://www.cnbc.com/2020/06/16/better-disruptor-50.html | title=15. Better.com | work=[[CNBC]] | date=June 16, 2020}}</ref>
* Listed on the FinTech 50 for 2020 by [[Forbes]]<ref>{{Cite web | url=https://www.forbes.com/companies/better-mortgage/ | title=Better Mortgage | work=[[Forbes]]}}</ref>
==References==
{{Reflist}}
==External links==
* {{Official website|https://better.com/}}
[[Category:2014 establishments in New York City]]
[[Category:2023 mergers and acquisitions]]
[[Category:American companies established in 2014]]
[[Category:Companies based in New York City]]
[[Category:Companies listed on the Nasdaq]]
[[Category:Online financial services companies of the United States]]
[[Category:Real estate companies established in 2014]]
[[Category:Real estate services companies of the United States]]