Online mortgage lender Better.com, founder Vishal Garg faces investigation from US regulators
Better, the online mortgage lender, is facing an investigation from US regulators that focuses in part on founder and CEO Vishal Garg.
Better, the online mortgage lender, is facing an investigation from US regulators that focuses in part on founder and CEO Vishal Garg. The company and its suitor, a special-purpose acquisition company called Aurora Acquisition Corp., received voluntary requests for information during the second quarter from the Securities and Exchange Commission’s enforcement division, documents show. filed with the agency on Thursday.
The requests cover aspects of Better’s operations, related party transactions, and “certain matters relating to certain actions and circumstances” of Garg and its business activities. The SEC also requested information about allegations in a whistleblower lawsuit filed last month by Better’s former head of sales and operations.
Better and Aurora are cooperating with the SEC, according to the filing, which adds that the companies could not predict how long the investigation would take and whether it would result in legal action.
Garg took a short leave of absence late last year after firing around 900 Better workers on Zoom, a move that created an outcry and prompted him to issue an apology. Rising interest rates have hurt the company’s loan volumes and resulted in significant losses in recent quarters.