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SoftBank-Backed Mortgage Lender Better Is Going Public Via $7 7 Billion SPAC

The New York City-based company was started in 2016 by Garg, a former analyst with Morgan Stanley, after a deal to buy a house for his family fell through. An all-cash buyer was able to beat the timing of his traditional mortgage lender, and that s when Garg figured there had to be a better way. He used the down payment he had set aside to start Better. Better s platform moves the mortgage process completely online, giving customers the ability to upload and eSign documents, and claims to cut the closing time from an industry average of 42 days down to 21 days. Garg says that the digital-only approach is also helping to decrease bias against minorities when applying for mortgage loans. The company has previously cited a study from the National Bureau of Economic Research showing that face-to-face lenders reject minority applicants about 6% more often than comparable non-minority applicants, and also charge minority applicants more for their mortgages.

Mortgage Firm to Go Public in SPAC Merger Backed by SoftBank

The transaction gives Better HoldCo an implied equity value of about $6.9 billion. Bloomberg | May 11, 2021 (Bloomberg) Better HoldCo Inc., a mortgage and real estate startup, agreed to go public through a blank-check merger in a deal backed by SoftBank Group Corp. The transaction gives Better HoldCo an implied equity value of about $6.9 billion, the companies said Tuesday in a statement. Better HoldCo offers mortgage, real estate and homeowners’ insurance products through an online platform that eliminates origination fees and commissions. The company will go public by combining with Aurora Acquisition Corp., a special purpose acquisition company that completed its initial public offering in March.

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