Why Better.com has waves of layoff? While people keep buying houses or refinacing like crazy

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xfhko

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xfhko
Apr 10 13 Comments

Tons of people have been buying houses like theres no tomorrow and refinancing. And people keep sayinh house only go up up up. So people need mortgage. Then why better.com still lay off

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TOP 13 Comments
  • New
    EDyi44

    New

    EDyi44
    I think Better makes most of their money on refinance and not on new purchases and refinancing will drop drastically after rates rise.

    I refinanced with them and it took 2 months. No buyer will wait that long. When I was buying, my bank was able to close in 20-25 days.
    Apr 10 1
    • Refinances always take longer than purchases. Most banks right now take about 45-60 days to close on refinances. Purchases are in that 20-25 day range you are talking about in some cases. Unless you live in a few other states that have Appraisal backlogs. And that's only for conventional mortgages. And that's only if literally everything goes right.
      Apr 11
  • So I think part of the problem is that people aren't actually buying houses like it's no tomorrow. They haven't been for a while. Rich people have for sure. But the bulk of the American consumer has been priced out for a while now. Inventory is also very low to make things worse.

    On the refinance side, there is literally a limited number of people left in the entirety of the United States population that would even have the ability to refinance their mortgage for a better rate. Just imagine what will happen when rates reach 6 percent or worse. The market for debt consolidation and cash-outs is way smaller than regular term refinances.

    Also, Better has just made some terrible decisions lately.
    Apr 11 0
  • CEO played with money and had no strategy for profitability. Better overpaid the market which means they’re losing money on every loan. It’s essentially operating like a charity
    Apr 10 0
  • Flagged by the community.

    • Flagged by the community.

    • Flagged by the community.

  • Conviva
    XWIO21

    Go to company page Conviva

    PRE
    Amazon, Google, Netflix, Apple, Meta
    XWIO21
    Investors want the company to go public. Layoff many so they can take back unvested equity, thus bigger win.
    Apr 10 1