Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

Mortgage

Better Mortgage offering $1,000 guarantee that it can beat other lenders’ pricing

Telling borrowers that it will beat any lender’s loan pricing or give you $1,000

A fairly recent study from the Consumer Financial Protection Bureau found that more than 75% of borrowers only apply for a mortgage with a single lender or broker.

Borrowers’ reluctance to shop around is partly why the CFPB pushed for its Know Before You Owe rule, which those in the mortgage business know better as the TILA-RESPA Integrated Disclosure rule, or TRID.

Part of the Know Before You Owe program is a loan estimate form that shows borrowers all of the costs, fees, and terms associated with their mortgage before they agree to the loan.

The idea behind that form is two-fold: First, to fully educate borrowers about what they’re getting into with their mortgage, and second, to allow the borrowers to shop around for a better option.

And while some lenders may not like that borrowers are encouraged to shop around, one lender is taking the exact opposite path – and actually incentivizing borrowers to shop around.

Better Mortgage, an online mortgage lender, is now offering borrowers a guarantee that its mortgage is cheaper than any other lenders’ options.

Specifically, Better Mortgage rolled out what it’s calling the “Better Price Guarantee.” Through the program, Better Mortgage guarantees that it will beat any competitor’s loan estimate by $1,000. If not, Better will give the borrower $1,000.

Here’s how it works, according to Better Mortgage:

If the customer thinks another lender has a more competitive price, they can send Better the competitor’s Loan Estimate within three business days from the date on the loan estimate. If Better can't beat the competitor’s LE by at least $1,000, Better will give the borrower $1,000 in cash when they fund with the other lender.

Earlier this year, Better Mortgage announced that it raised $15 million and planned to use the money to launch and expand Better's home purchase finance product on the company’s website, Better.com.

The company claims that it can serve borrowers better (no pun intended) than other lenders and now it’s ready to prove it with a four-figure financial incentive.

“Buying a house is fraught with stress – both emotionally and financially – so homebuyers might not be shopping around for the best priced mortgage. And even if they are, they might find it impossible to compare costs,” Vishal Garg, CEO of Better Mortgage, said.

“If people are doing comparison pricing on their groceries, shouldn’t they be able to on what might be the biggest purchase of their lives?,” Garg continued.

“Our mission is to turn the mortgage industry on its head and to empower consumers with transparency, affordability and a no-BS approach leveraging technology and data,” Garg added. “It’s why we’re putting our money where our mouth is with the Better Price Guarantee.”

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By

Latest Articles

Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

Dec 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please