Amazon has struck a deal with beleaguered online mortgage company Better.com to offer new benefits to its employees.
Better.com has launched Equity Unlocker. This is a program that allows employees to use vested shares as collateral for a down payment when attempting to purchase a home. Amazon employees in Florida, New York, and Washington will be the first to try the tool. According to Better.com, what makes the program unique is that it allows employees to finance their homes simply by pledging vested shares without actually selling the stock.
Better.com says even former Amazon employees with vested interests can take advantage of the service. Current and former workers can also use the mortgage tool for secondary vacation homes or investment properties. Closing costs, if the loan is secured, range from his 2% to 5% of the loan, Better says on its website. However, there are pitfalls. The WSJ reported today: how the down payment is structured; ”
Amazon spokesperson Brad Glasser told TechCrunch in an email that the company is stepping up its benefits offerings to “better support the mental, physical and financial health of its employees” and “always look for opportunities.” There are,” he said.
He added: Eligible employees have access to these benefits from day one of employment with us, regardless of role or location. ”
While Better’s new service is specifically focused on the home-buying process, the philosophy behind the program is to support the “whole workforce.”
“Financial health, mental health, and physical health are all integral aspects of employee health, and they all influence each other,” Glasser said. “Financial wellness means providing benefits that support short-term and long-term financial success, helping our employees spend their time at Amazon and beyond.”
This is both a creative and surprising partnership. According to a statement, Better said he has been an Amazon Web Services customer since 2015, and the company’s loan origination system is entirely software-powered. Still, Better has seen its fair share of hardships that have cast its future into question: Last May, TechCrunch reported that Better.com had lost more than $300 million to him in 2021. reported a filing that revealed that This is largely after a rapid decline in business brought on by a slowing housing market and soaring mortgage rates. rate.
The company’s reputation has also been hit hard by the way it has repeatedly implemented mass layoffs, resulting in an exodus of executives. Better.com also headlined last July, but seemed to still be pushing forward with its SPAC filing despite the lackluster performance of Blank Check’s combination debut. (On the same day as his updated SPAC filing, the WSJ reported that the SEC is investigating whether Better.com violates federal securities laws, according to the company’s disclosure. Thing.)
Amazon may be a guinea pig for testing, but Better aims to make Equity Unlocker available nationwide to employees of public and private companies.
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