Better.com stock gets clobbered as it begins trading publicly down more than 93% (opens in new tab)

(fastcompany.com)

27 pointsremote_phone2y ago18 comments

18 comments

None of these “fancy pants” mortgage ℠ companies could beat my boring old banks

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.

thedougd2y ago

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.

bombcar2y ago

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.

1 more reply

toomuchtodo2y ago

They were juicing volume for their capital market debut.

bluecheese4522y ago

Rocket mortgage beat my bank by over a percentage point. My bank wouldn’t even match.

uslic0012y ago

Rocket Mortgage was the worst mortgage company I ever worked with. I ended up using my local bank with better rates and a much faster closing.

SkyPuncher2y ago

My aunt is an agent. In the past, she’s said Rocket Mortgage is considered a less competitive offer. It sounds like they have a high reject rate.

bombcar2y ago

Key is “my banks” - I had already found low rate low fee mortgage providers and ended up using them again

the-dude2y ago

The Adyen stock collapse awakened memories for me. Now this.

I am feeling dot-com-bust vibes. Adyen lost approx 50% and has not recovered.

This time it is different!

toomuchtodo2y ago

https://www.nasdaq.com/market-activity/stocks/betr

Already non compliant with NASDAQ listing standards.

Racing04612y ago

They knew, the original investors just wanted a payout with someone else holding the bag. As more index funds blindly buys stocks, we will be seeing this more and more.

OneMorePerson2y ago

As far as I know (correct me if I'm wrong), indexes do blindly buy stocks but they only buy once a quarter or so (roughly) so unless they IPO at the exact "right" time, its not going to just grab it up right away. If its that volatile its going to be bought up after the significant losses happen, if it gets bought at all. Also the 90% loss is from the initial release which happens to private investors, mutual funds typically don't get into it until it's more publicly available (later stages), and this stock has only dropped ~35% since becoming publicly available.

chrisgd2y ago

Sorry, but this makes no sense. First, it was a de-SPAC combination so only two investors putting fresh money in and, it seems, all the SPAC IPO investors dumping ad quickly as possible.

Second, index fund buying would be a positive so not sure why that is mentioned here.

SPACs were not of interest for 20 years, anyone still contemplating has likely been turned down by everyone else.

yieldcrv2y ago

any secondary market debut without a stabilizing bid should be avoided

and to my knowledge, only actual IPOs have stabilizing bids

SPAC mergers and direct listings do not, this was a SPAC merger

j / k navigate · click thread line to collapse

18 comments

bombcar2y ago

None of these “fancy pants” mortgage ℠ companies could beat my boring old banks

lotsofpulp2y 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.

thedougd2y ago

bombcar2y ago

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.

1 more reply

toomuchtodo2y ago

They were juicing volume for their capital market debut.

bluecheese4522y ago

Rocket mortgage beat my bank by over a percentage point. My bank wouldn’t even match.

uslic0012y ago

Rocket Mortgage was the worst mortgage company I ever worked with. I ended up using my local bank with better rates and a much faster closing.

SkyPuncher2y ago

My aunt is an agent. In the past, she’s said Rocket Mortgage is considered a less competitive offer. It sounds like they have a high reject rate.

bombcar2y ago

Key is “my banks” - I had already found low rate low fee mortgage providers and ended up using them again

the-dude2y ago

The Adyen stock collapse awakened memories for me. Now this.

I am feeling dot-com-bust vibes. Adyen lost approx 50% and has not recovered.

This time it is different!

toomuchtodo2y ago

https://www.nasdaq.com/market-activity/stocks/betr

Already non compliant with NASDAQ listing standards.

Racing04612y ago

They knew, the original investors just wanted a payout with someone else holding the bag. As more index funds blindly buys stocks, we will be seeing this more and more.

OneMorePerson2y ago

chrisgd2y ago

Sorry, but this makes no sense. First, it was a de-SPAC combination so only two investors putting fresh money in and, it seems, all the SPAC IPO investors dumping ad quickly as possible.

Second, index fund buying would be a positive so not sure why that is mentioned here.

SPACs were not of interest for 20 years, anyone still contemplating has likely been turned down by everyone else.

yieldcrv2y ago

any secondary market debut without a stabilizing bid should be avoided

and to my knowledge, only actual IPOs have stabilizing bids

SPAC mergers and direct listings do not, this was a SPAC merger

j / k navigate · click thread line to collapse