Digital lender Better.com is laying off 9% of its workforce, and the majority of positions cut will be loan officers.
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Digital lender Better.com is laying off 9% of its workforce, and the majority of positions cut will be loan officers, sources on Wednesday told HousingWire Mortgage Reporter Maria Volkova.
The New York-based company announced the layoffs to employees on Tuesday. The majority of those who will be laid off are salaried, non-commissioned loan officers who were focused on refis (the company called them "home advisors"), sources told Volkova. The company told employees that it was looking to build out its purchase- and post-closing operations, and that it wasn't immune to the pressures caused by the transition away from refis. Better plans to automate some of the refi processes.
In documents filed with the SEC, Better told shareholders that it was on track to lose between $85 million and $100 million in the third quarter, and expected losses to widen in the fourth quarter.
Better, which had aimed to go public through a SPAC merger by the end of the year, announced on Wednesday that it will receive a big cash infusion from its backers sooner than expected. Blank-check firm Aurora Acquisition Corp. and venture capital powerhouse SoftBank have amended the terms of an earlier financing agreement, and will immediately provide $750 million of a total $1.5 billion in committed funding.
Better is the second significant lender to announce LO layoffs in recent weeks. Chicago-based Interfirst Mortgage, another refi-heavy shop, late last month told 49 LOs that they'll be out of a job come January 22. We'll have more reporting on what happened at Interfirst in the coming days.
So, LOs, lemme ask you – has it begun? What have you heard about the possibility of layoffs at your shop? Email me anonymously at jkleimann@housingwire.com.
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