Better Home & Finance announced on Monday that Vishal Garg, the company’s CEO and founder who led the company from its early days through its successful IPO, would step down from his position.
In the time since going public in August 2023, Better has posted net losses of over $1 billion and has not turned a profit despite recent growth.
Garg will remain a member of the company’s board of directors, and board member Daniel Lewis was named interim CEO, the company said.
“We built Better to disrupt the mortgage loan industry by developing and integrating AI solutions to simplify the process for borrowers across one of the largest asset classes in the world,” Garg said in a statement.
“In the last 10 years, we have helped more than 600,000 customers buy or refinance their homes across more than $110 billion in loan volumes, providing testament to the durable demand for what we have created. Better is at an important inflection point, and now is the right time for new leadership. I have come to know Daniel quite well, and I am confident he is the right person to lead the Company through this important time in its evolution.”
The announcement came the same day Better announced that it lost $30.6 million in the second quarter despite funded loan volume climbing 45 percent year-over-year and revenue rising 28 percent in the same quarter.
That pushed Better’s net losses to more than $1 billion in the three years since the company went public.
During the first three months of this year, Better reported losing $70 million.
The company is scheduled to share its full earnings results next Monday, and shares in the company fell nearly 12 percent quickly after news of the leadership change broke.
In making the announcement, the company said that it would focus on improving its mortgage origination processes.
“Better delivers the industry’s best origination experience, built upon Vishal’s vision and ability to integrate disruptive AI solutions into the mortgage origination process,” Lewis said in a statement. “Looking ahead, Better will win by leveraging that experience to manufacture mortgages efficiently, not by outspending competitors on customer acquisition.”
Lewis previously served as CEO of the Canadian company Ascend Fundraising Solutions from 2018 to 2023. He also previously worked as a managing director at Citigroup.
“Our immediate priorities extend well beyond the cost reductions already underway, which we expect to exceed $45 million on an annualized basis by year-end, substantially above our previously announced $25 million target,” Lewis said in the statement. “Looking at our target markets, HELOC demand continues to strengthen and is an area where we intend to expand activity as conditions are favorable, while enterprise customers and independent mortgage brokers demonstrate strong interest in the platform.”
Editor’s note: This story has been updated with further details and context.
