Author Topic: Video of Better.com CEO Laying Off 15% of Workforce  (Read 1967 times)

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Offline Cares

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Video of Better.com CEO Laying Off 15% of Workforce
« on: December 03, 2021, 01:05:52 PM »

I have lost a few loans to Better because they just had some outrageous rates that I could not get close to. Usually I can be pretty competitive and beat most aggressive lenders like Owning except Better. At the time I had to believe they were taking losses or making no profit on some loans. I guess this confirms my suspicions now that the refi market is drying up.

It's a poor business model and you cannot run a refi heavy business without purchase loans and except to survive long term. Their strategy was very short sighted.

Offline Liar Loan

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #1 on: December 03, 2021, 01:47:44 PM »
I have lost a few loans to Better because they just had some outrageous rates that I could not get close to. Usually I can be pretty competitive and beat most aggressive lenders like Owning except Better. At the time I had to believe they were taking losses or making no profit on some loans. I guess this confirms my suspicions now that the refi market is drying up.

It's a poor business model and you cannot run a refi heavy business without purchase loans and except to survive long term. Their strategy was very short sighted.

The quest for market share over margin has gotten more than a few mortgage companies in trouble over the years.  It takes a lot of pricing and hiring discipline to weather these cycles.

Also, this brings to mind yesterday's debate about white collar layoffs as the result of higher rates.  In OC especially there are a lot of jobs tied to the health of the mortgage and real estate markets.

Offline Compressed-Village

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #2 on: December 03, 2021, 02:19:47 PM »
This is a natural course of business direction. When you have 80 % of mortgage holders refi and completed their transactions to an all time historic low rate, you will eventually run out of customers to service. There are too many refi shops that run on razer thin profits and can not keep the fat that must be cut.

The FED need to stop the bail out and must let the fourth turning takes affect. That is, shed the leaves in winter and be ready for a better blossom in spring. The zombies companies must be left to die and new one will blooms with better innovations and competitiveness. This will take a long time to playout. The Fourth Turning could take up to a decade to complete.

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Offline eyephone

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #3 on: December 03, 2021, 02:27:35 PM »
It is what is. PE or institutional funding dried up? idk
gg

Offline Soylent Green Is People

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #4 on: December 03, 2021, 02:48:51 PM »
Better.com is the Zillow of mortgage lending. Big pocket backing run aground by seeing eye dog led management. Even though this is a layoff the severance package for these folks is pretty generous. That doesn't take the sting out of how stupid this was to announce this 22 days before Christmas. My guess is this move was done to tidy up before a sale to bigger and better run management.

There are still plenty of refinance buyers to help. The cream however has already been skimmed off the top. Every remaining refi borrower will require some experience based finesse to approve and close, not the sort of sloppy application mill practice of tossing what you get against the wall each day just to see what might stick. It was a great run for many companies - as it was for mortgage lenders in late 2006, early 2007. Significant consolidation lies ahead - not just 15% here, 15% there at some of the refi shops, but in the mortgage, title, and escrow industry across the board.

Some thought that economic cycles had been eliminated with the Fed's intervention since 2007. These folks obviously didn't hear the tin can clanking further down the road during the last 14-15 years, but here we are - as expected by a few of us.   
« Last Edit: December 03, 2021, 03:49:45 PM by Soylent Green Is People »
My .02c

SGIP

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Offline woodburyowner

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #5 on: December 03, 2021, 03:02:42 PM »
I wonder if their rates will be less competitive now.  I've used them 3 times and they had rates that absolutely cannot be beat. 

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #6 on: December 03, 2021, 03:03:31 PM »
When it's too good to be true....
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Offline aquabliss

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #7 on: December 03, 2021, 04:16:02 PM »
The YouTube comments are fun to read. 

Offline HMart

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #8 on: December 03, 2021, 04:56:48 PM »
The CEO is awkward but you never know when in business you're the one having to let people go or be let go yourself.

Offline The California Court Company

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #9 on: December 03, 2021, 06:50:52 PM »
I heard he had another call with those who survived and in that call he dissed the group he just laid off, and asked the survivors to work extra hard because they will be closely watched. plus he does this right before the holidays. This CEO is cold
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Offline Compressed-Village

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #10 on: December 03, 2021, 07:21:01 PM »
What happen to the Great Resignation in this era?

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Offline CalBears96

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #11 on: December 03, 2021, 07:25:03 PM »
What happen to the Great Resignation in this era?

I guess you can add this case to forced resignation?

Offline Compressed-Village

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #12 on: December 03, 2021, 08:50:21 PM »
What happen to the Great Resignation in this era?

I guess you can add this case to forced resignation?

That’s right, it counts.

Offline daedalus

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #13 on: December 03, 2021, 10:09:59 PM »
Great sympathy to those affected, but am I the only one who LOL'd harder than anything else this week at 1:24 in the vid?

Offline Liar Loan

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Re: Video of Better.com CEO Laying Off 15% of Workforce
« Reply #14 on: December 06, 2021, 10:51:49 AM »
Great sympathy to those affected, but am I the only one who LOL'd harder than anything else this week at 1:24 in the vid?

I'll admit it... I laughed.

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