Alexander Bond's questions to Better Home & Finance Holding (BETR) leadership • Q4 2024
Question
Alexander Bond from Keefe, Bruyette & Woods, Inc. questioned the trend in gain on sale margins for Q1 and the factors contributing to the stronger margins seen in NEO Home Loans.
Answer
CFO Kevin Ryan confirmed that Q1 gain on sale margins were trending higher, driven by the NEO Home Loans business, which operates at about 150 basis points higher than the direct-to-consumer (D2C) channel. CEO Vishal Garg added that in the D2C channel, the AI agent Betsy improves margins by increasing conversion speed, reducing the need to compete solely on rate.