Key facts
- Vishal Garg has presented a 90-day plan for Better Home & Finance Holding Co. to increase loan volume and revenue.
- The plan includes targets of $2 billion in quarterly funded loan volume and $7 million in additional monthly revenue.
- Garg aims to reduce the company's monthly cash burn from $4 million to zero.
- Key initiatives involve launching a HELOC product, leveraging AI for efficiency, and cost reductions.
- Garg is seeking to regain a leadership role, leading to a dispute with Better's current board.
- The board has urged shareholders to reject Garg's campaign, citing past financial losses and his removal as CEO.
Vishal Garg, the founder and former CEO of Better Home & Finance Holding Co., has unveiled a 90-day plan aimed at revitalizing the mortgage company and positioning himself for a return to leadership. The plan, shared on LinkedIn, calls for significant increases in quarterly funded loan volume to $2 billion and an additional $7 million in monthly revenue, while also targeting the elimination of the company's $4 million monthly cash burn.
Garg's strategy emphasizes leveraging AI technology, including his Tinman platform, to improve operational efficiency and customer conversion rates. Proposed actions include increasing loan officers' daily talk time, enhancing direct-to-consumer conversion rates, and implementing instant counteroffers for loans. Cost-saving measures are also central to the plan, with proposals for aligning loan officer commissions with AI-assisted conversions, streamlining counteroffer processes, and utilizing AI for legal work, collectively aiming for substantial monthly savings.
The proposed turnaround plan emerges amidst a contentious battle for control between Garg and Better's current board. Garg is actively seeking to replace five directors, which he believes would facilitate his return to an executive position. He has engaged with shareholders, encouraging them to support his proxy solicitation.
However, Better's board has strongly opposed Garg's campaign, urging shareholders to reject his proposals. In an investor presentation, the board criticized Garg's past leadership, citing over $7 billion in destroyed shareholder value and more than $2 billion in cumulative net losses during his tenure. They argue that the company is already implementing improvements under new leadership and that Garg's campaign is a costly distraction.
The governance dispute has escalated into legal action, with Better suing Garg for alleged unlawful solicitation and disclosure violations, while Garg has countersued board members and the interim CEO, accusing them of improper entrenchment. A federal judge has allowed Garg's shareholder campaign to proceed while the legal battles continue.