Online Mortgage Lender Better.com, Founder Vishal Garg Face Inquiry by US regulators
Better, the online mortgage lender, is facing an inquiry by US regulators that focuses in part on founder and Chief Executive Officer Vishal Garg.
Better, the online mortgage lender, is facing an inquiry by US regulators that focuses in part on founder and Chief Executive Officer 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 enforcement division of the Securities and Exchange Commission, according to documents 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 as well as his business activities. The SEC has also requested information about allegations in a whistle-blower 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 added that the companies couldn't predict how long the inquiry would take and whether it would result in an enforcement action.
Garg took a short leave late last year after firing about 900 Better workers over Zoom, a move that created an uproar and led him to issue an apology. Rising interest rates have hurt the company's loan volumes and resulted in large losses in recent quarters.
Follow HT Tech for the latest tech news and reviews , also keep up with us on Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.