A bad reputation

On paper, mortgage lender Better.com is worth $6.9 billion. The company boasts a lot of characteristics that excite investors – it's scalable, completely digital, growing rapidly, has a brash-and-brilliant CEO, and operates in a heavily fractured market with the potential to cross-sell other products.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   On paper, mortgage lender Better.com is worth $6.9 billion. The company boasts a lot of characteristics that excite investors – it's scalable, completely digital, growing rapidly, has a brash-and-brilliant CEO, and operates in a heavily fractured market with the potential to cross-sell other products.    In reality, a lot of people in the industry say Better.com is worth a lot less than that. And it's not just because it's staring at some ugly P&L numbers even when competitors are making money.    Surely you heard that combative CEO Vishal Garg laid off 900 people on a three-minute Zoom. He then told remaining employees, "They were stealing from you and stealing from our customers... Get educated," Fortune Magazine reported. Yikes. In doing all that, Garg might just have ripped out an incalculable amount of value from SoftBank-fueled Better.    Several executives handed in their resignations following the incident, including the heads of its communications and marketing teams, and sources say additional departures are expected to follow. How can Better's existing workers focus on the task at hand and not constantly look over their shoulder? Who would work for Better if they had better options? Some prospective borrowers will also undoubtedly look elsewhere for a mortgage.   Garg, who is known for his scorched-earth management style, did apologize to staff this week. The public offering via a SPAC is still on, though it's been delayed. But the reputational damage is done.    So, let me ask you, LOs – would you work for a place with a bad reputation? Have you avoided certain companies? Which ones, and why? Email me anonymously at jkleimann@housingwire.com.    James Kleimann Managing Editor, HousingWire Will we start 2022 with all-time lows in housing inventory? Politics & Money, Real Estate, HW+ Exclusive Content Housing inventory has collapsed to all-time lows this year. Lack of inventory continues to be one of the biggest risks to the housing market. The Updated Qualia Homebuyer Sentiment Index 92% of recent buyers leveraged online tools to obtain a mortgage. Read on for more insights into homebuyer expectations in 2021. Learn More! Sponsored by Qualia Profit margin compression and a tight housing market – What's a lender to do? Presented by Black Knight HW+ Managing Editor Brena Nath and Black Knight Managing Director Rob Kessel discuss how lenders can better price loans and remain competitive in today's tight housing market Mortgage applications are up, on the strength of FHA refis Mortgage Mortgage applications increased 2% for the week ending Dec. 3, driven by a surge in government refis, according to the latest MBA survey. Cash-out refis are in high demand as equity levels skyrocket Mortgage The third quarter saw homeowners tap into their home equity at the highest rate in more than 14 years, with cash-out refis making up 54% of all refinances. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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