Brick and mortar mortgage lender Better.com had a net loss of $89.9M for the first quarter of 2023 and made the difficult decision to downsize their workforce by 91%. This drastic reduction in their personnel was largely a result of the decline in mortgage production, in part due to refinancing activity no longer being a significant source of revenue.
Since 2020, the competitive landscape in the mortgage industry has drastically changed. With interest rates hitting record lows, mortgage refinancing became an increasingly popular option amongst consumers, spurring new entrants into the market and many existing borrowers jumped ship. This shift has left many traditional lenders in a difficult situation, with their business relying more and more on their ability to originate new loans rather than refinance existing ones.
Key Points:
• Better.com had a net loss of $89.9M in Q1 2023
• Cut 91% of their workforce
• Decline in production due to shift from refinancing activity to originating new loans
• Record low interest rates spurred new entrants into the market
• Traditional lenders relying more on their ability to originate new loans
You can read this full article at: https://www.housingwire.com/articles/better-com-posts-90m-net-loss-in-q1-2023/(subscription required)
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