Video of Better.com CEO Laying Off 15% of Workforce

Cares

Well-known member
https://www.youtube.com/watch?v=X7GVklRqHRY

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.
 
Cares said:
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.
 
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.
 
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.   
 
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. 
 
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
 
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?
 
You didnt know employers can legally do that?
Emails sent or received through company emails are not considered private.


akula1488 said:
Wow he effectively admits they are monitoring everything employees does on their work computer. I am sure this is standard practice but saying it out loud I am not sure how uncomfortable the remaining employee would feel.

WTTCHMN said:
Better.com CEO accused hundreds of the 900 people he laid off on Zoom of 'stealing' by working only 2 hours daily
https://www.businessinsider.com/better-com-ceo-accused-hundreds-layoff-staff-working-2-hours-2021-12
 
Of course everyone knows that. But to make it public and emphasize that, it is not a good morale booster. I bet majority people use their work computer to do some kind of personal things occasionally but at Better everything you do is being monitored it must be very high pressure environment there.

eyephone said:
You didnt know employers can legally do that?
Emails sent or received through company emails are not considered private.


akula1488 said:
Wow he effectively admits they are monitoring everything employees does on their work computer. I am sure this is standard practice but saying it out loud I am not sure how uncomfortable the remaining employee would feel.

WTTCHMN said:
Better.com CEO accused hundreds of the 900 people he laid off on Zoom of 'stealing' by working only 2 hours daily
https://www.businessinsider.com/better-com-ceo-accused-hundreds-layoff-staff-working-2-hours-2021-12
 
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