New offering will "create a strategic moat for Better, and be a near impossible act for competitors to follow"
Better has unveiled its “breakthrough offering,” a loan program that the company claimed is a “near impossible act for competitors to follow.”
The fintech company announced Wednesday the launch of One Day Mortgage, which Better described as a “breakthrough innovation” that will enable its customers to go online, get pre-approved, lock their rate, and get a mortgage commitment letter from Better, all within 24 hours.
“For my entire career, a one-day mortgage has served as the holy grail for consumer finance companies to achieve and scale,” said Better chairman Harit Talwar. “With this launch, Better has developed its breakthrough offering. This milestone will add immense value to the consumer, create a significant strategic moat for Better, and be a near impossible act for competitors to follow.”
According to information released by the company, One Day Mortgages are available in all 50 states for customers who are salaried employees and are making a down payment of at least 3% on a conforming Fannie Mae or Freddie Mac mortgage. One Day Mortgages are fully underwritten to the investor criteria set by Better’s investors, as well as all the applicable criteria for conforming mortgages from Fannie Mae and Freddie Mac.
Better said it quietly rolled out the loan program in the second week of January to a small segment of customers. Since the beta stage, the company has seen strong interest in the offering and processed over $50 million in One Day Mortgage commitments.
“We spent the first seven years bringing the mortgage industry into the digital era and executing over $100 billion of fully digital online mortgages,” Better CEO Vishal Garg said. “Better’s offerings serve to kickstart the slow, opaque, and costly homeownership process. With One Day Mortgage, Better is revolutionizing the mortgage industry once again by empowering its customers, making it not only cheaper but also faster and easier to own a home, all in one day.”
“It is hard to overestimate the importance of One Day Mortgage to Better, its customers, and the real estate ecosystem as a whole,” added Prabhu Narasimhan, partner at Novator Capital, a major shareholder at Better. Narasimhan will join the company’s board of directors. “One Day Mortgage unlocks it all. It takes away the weeks of uncertainty that permeate the entire real estate transaction. If we can execute mortgage commitments in one day and closings in three days, we can complete entire transactions in less than one week to make the entire process better.”
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