Vishal Garg, founder of Better Home & Finance Holding Co., has stepped down as CEO. The company's board appointed board member Daniel Lewis as interim CEO, effective immediately.
Better, a mortgage lender and real estate platform, has faced operational turbulence in recent years. Garg built the company into a unicorn valued at $6 billion in 2021, but the firm struggled as interest rates climbed and the housing market cooled. The company cut staff multiple times and delayed going public.
Lewis brings board-level perspective to the role as interim leader. His appointment signals the board's intent to stabilize operations while it searches for a permanent CEO. Better competes against traditional lenders like Rocket Companies and newer digital platforms including Blend Labs.
For borrowers, this leadership change could affect service quality and product roadmap. Better markets itself on fast digital closings and lower fees compared to legacy lenders. Buyers and sellers who've chosen Better need to monitor communication from the new interim management about loan processing timelines and closing procedures.
For employees, leadership transitions typically create uncertainty about strategic direction and headcount. Better has already cut staff aggressively over the past two years.
Investors and stakeholders watch closely as Lewis takes the helm. The company must stabilize revenue, reduce cash burn, and chart a clearer path to profitability or a strategic exit. Better remains privately held after abandoning its SPAC merger plans in 2022.
The mortgage market itself remains challenged with higher rates limiting refinance volume, though purchase volumes have held relatively steady. Better's ability to compete depends on execution under new leadership. Lewis's first priorities likely include cost management, talent retention, and clarifying the company's medium-term strategy with investors and lenders.