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by lotsofpulp 1034 days ago
Better, as well as other online lenders, were definitely offering very competitive financing, especially with the AmEx credit. See this thread for pages and pages:

https://www.bogleheads.org/forum/viewtopic.php?t=289559&star...

I never found a local lender that came close to LoanDepot/Better.

3 comments

I took the money and ran. I took the AMEX credit, an employees friends and family discount, and because of a mistake better.com covered a significant moving expense. They didn’t even ask how much it was before covering it. Anyhow, all in the discount was low 5 figures. I closed just before their peak.
I really tried to make it work, because I wanted that deal, but the fees and other things associated with Better kept coming out worse.
I always assumed they were undercutting other lenders by burning Softbank/Middle East money.
I'm sure there was some of that, and maybe it was my location/mortgage situation (maybe they excelled at jumbo loans?) but when I did a full comparison they were "just normal" (some things had moved around on the fees which can make it harder to compare, mind you). Maybe I came a bit after they were tightening (this was just before covid IIRC).

After all, they just resell the loans same as anyone, not sure what there really is to optimize away.

Yes, the best deals were only for jumbo loans, maybe only even in California. Refinancing smaller loans is less lucrative.
They were juicing volume for their capital market debut.