Key Takeaways:
– Better Home & Finance Holding Company has partnered with Infosys on a mortgage-as-a-service platform.
– The platform aims to reduce origination costs and help partners manage operational volatility.
– Better’s mortgage as a service platform handles all aspects of the mortgage process.
– The partnership with Infosys aligns with Better’s strategy to become a leading mortgage-as-a-service company.
– Better has shifted its strategy to focus on what it does best in-house and partner with other businesses for the rest.
– Better has launched Better Insurance, a white-label solution that offers competitive pricing without engaging with insurance agents.
– Better reported a net loss of $45.5 million in Q2, an improvement from the previous quarter.
– Better’s origination volume in Q2 was $900 million across 2,421 loans.
– Better ranked as the 62nd largest mortgage lender in the first half of 2023.
– Better will report its third-quarter financial earnings on Nov. 14.
HousingWire:
New York-based digital lender Better Home & Finance Holding Company has partnered with information technology consulting company Infosys on a mortgage-as-a-service platform.
The integrated end-to-end digital mortgage white-labeled platform aims to cut origination costs and helps partners limit operational volatility in the current interest rate environment, Better said Thursday in announcing the launch.
“Better’s mortgage as a service platform is the first full-stack, end-to-end solution that handles all aspects of the mortgage process including point of sale, pricing, underwriting, loan origination, closing, funding and investor sale,” Vishal Garg, CEO and founder of Better, said in an e-mailed response to HousingWire.
Better’s mortgage as a service currently consists roughly 20% of its revenue and the lender aims to grow this business line, Garg said.
The partnership with Infosys is in line with Better’s new strategy to become a leading mortgage-as-a-service company or a white-label provider of mortgage technology.
Before Better debuted on the Nasdaq after a two-year journey in late August, the digital lender strived to be a one-stop shop where the firm does everything in-house. Prior to its initial public offering (IPO), Better shifted its strategy to doing only what its best at in-house and partnering with other businesses for the rest.
The company’s latest efforts to become a digital homeownership company includes the launch of Better Insurance.
The white-label solution eliminates redundancy and offers competitive pricing for customers without engaging with insurance agents, said Nick Taylor, head of real estate at Better.
When a buyer applies for home insurance, Better Insurance asks questions about the type of property and estimated home sales price, then the firm provides customers with a preview of insurance options.
The digital lender reported a net loss of $45.5 million in Q2, an improvement from a net loss of $89.9 million the previous quarter.
Better’s origination volume was $900 million across 2,421 loans in the second quarter of 2023, compared to production of $800 million across 2,347 loans funded in the previous quarter.
Better ranked as the 62nd largest mortgage lender in the first half of 2023, according to Inside Mortgage Finance.
The lender is scheduled to report its third-quarter financial earnings on Nov. 14.
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Property Chomp’s Take:
Hey there! Today, let’s talk about a New York-based digital lender called Better Home & Finance Holding Company and their recent partnership with Infosys, an information technology consulting company. Together, they have developed a mortgage-as-a-service platform that aims to streamline the mortgage process and reduce costs.
Better’s integrated platform covers everything from point of sale to investor sale, making it a comprehensive solution for mortgage-related tasks. Vishal Garg, the CEO and founder of Better, believes that this platform will not only cut origination costs but also help partners navigate the current interest rate environment with less operational volatility.
This mortgage-as-a-service offering currently constitutes around 20% of Better’s revenue. However, the company has plans to grow this segment further. This aligns with Better’s new strategy to become a leading mortgage-as-a-service company or a white-label provider of mortgage technology. They have shifted away from wanting to do everything in-house and instead focus on what they excel at, while collaborating with other businesses for the rest.
Better’s recent efforts to become a digital homeownership company include the launch of Better Insurance. This white-label solution eliminates redundancy and offers competitive pricing for customers without the need for insurance agents. Customers can apply for home insurance through Better Insurance and receive a preview of available options based on their property type and estimated sales price.
In terms of financials, Better reported a net loss of $45.5 million in the second quarter of this year, which is an improvement from the previous quarter. Their origination volume reached $900 million across 2,421 loans in Q2, compared to $800 million across 2,347 loans in the previous quarter. According to Inside Mortgage Finance, Better ranked as the 62nd largest mortgage lender in the first half of 2023.
If you’re interested in learning more about Better’s progress, mark your calendars for November 14. That’s when they are scheduled to report their third-quarter financial earnings.
Overall, Better’s partnership with Infosys and their mortgage-as-a-service platform represent their commitment to innovation and providing a seamless mortgage experience. With their focus on specific strengths and collaborations, they are poised to make a significant impact in the digital lending industry.
