Weekly Real Estate News
Summary
Better founder Vishal Garg outlined a 90-day Better 2.0 plan targeting lower quarterly expenses, HELOC and wholesale growth, a CEO search and potential bank sale.
Better Home & Finance founder Vishal Garg is moving quickly to reshape the mortgage company after regaining board control, outlining a 90-day plan that includes a materially lower expense base, expansion in home-equity and wholesale lending and a search for a new chief executive.
The operating plan is a material update to WRE News’ earlier report on Garg’s successful shareholder campaign to reconstitute Better’s board. The governance fight is now shifting into an execution test.
During the company’s Oct. 6 shareholder call, Garg said Better is targeting quarterly operating expenses of roughly $50 million, down from about $65 million, according to HousingWire’s report on the call. He also described growth priorities in HELOCs and wholesale lending and plans for a stock repurchase program.
Board control has already produced management changes
A Better SEC filing disclosed that the reconstituted board removed interim CEO Daniel Lewis effective Oct. 5 and began a process to identify and appoint a successor interim chief executive. Garg is a director but the company has not said that he has been reinstated as CEO.
The distinction matters after a contentious period in which Garg sought to remove directors and regain influence over the company’s direction. Five directors were removed, and Garg, initially the sole remaining director, appointed Bing Gordon, Steven Sarracino, Paula Tuffin and Nicholas Calamari to fill vacancies.
Birmingham Bank could add liquidity
Better also said it is progressing toward a proposed sale of wholly owned Birmingham Bank Limited to a buyer consortium. The buyer group has escrowed £10 million, but the transaction remains subject to regulatory approval, definitive documentation and customary closing conditions. Better said the proposed price is 0.95 times tangible net asset value.
Because the transaction has not closed, the potential cash benefit should not be treated as realized proceeds. The company has said the sale could materially strengthen liquidity if completed.
The next phase will be measurable: whether Better can reduce expenses without impairing production, rebuild mortgage volume in a high-rate environment and translate its technology strategy into sustainable revenue. With mortgage rates again pushing toward 8%, the timing makes that turnaround substantially harder.
