Amazon has reached an agreement with online mortgage lender Better.com to offer employees a new benefit.
Launches Better.com Equity Unlocker, a program that allows employees to use their earned equity as collateral for a down payment when they try to buy a home. Amazon employees in Florida, New York and Washington will be the first to try out the tool. According to Better.com, what’s unique about the program is that employees can finance their homes without selling their stocks, but can only tie the equity they’ve earned.
Even former Amazon employees with vested interests can use the service, according to Better.com, and there are many after Amazon’s company-wide layoffs. Current and former employees can also use the mortgage tool for second homes or investment properties. Closing costs when the loan is secured range from 2% to 5% of the loan, Better reports on its website. However, there is one condition. As the WSJ reported today, “To guard against a long-term fall in Amazon stock price, Better.com will charge a higher mortgage rate to employees who pledge stock, ranging from 0.25 to 2.5 percentage points above the market rate, as the case may be. are how the warehouse is structured.”
Brad Glasser, an Amazon spokesperson, told TechCrunch via email that the company is “always looking for ways” to improve its service offerings “and better support the mental, physical, and financial well-being of its employees.”
He added: “As part of that, we offer a wide range of financial benefits, including resource savings, tools to enhance financial education and programs to help employees feel financially strong. Eligible employees are entitled to these benefits from day one with us, regardless of job title or location.”
While this new service from Better focuses specifically on buying a home, the philosophy behind the program, according to the company, is to support the entire employee.
“Financial, mental and physical well-being are essential aspects of employee health, and they all influence each other,” said Glasser. “For financial well-being, that means providing benefits that contribute to short-term and long-term financial success, for employee time at Amazon and beyond.”
It’s a creative collaboration, but also an incredible one. Better has been an Amazon Web Services customer since 2015, and the lending system is powered entirely by the software, a statement said. Still, Better has endured its fair share of battles that have cast doubt on its future. Last May, TechCrunch reported on a filing showing that Better.com posted a loss of more than $300 million in 2021 after business declined rapidly, largely due to a downturn in the housing market and an increase in the real estate industry due to mortgage rates. Prices
The company’s reputation was also hit hard by numerous rounds of mass layoffs, which also led to a brain drain. Better.com also made headlines last July when it appeared to be making further progress on its SPAC application, despite the mediocre performance of blank check matching debuts. (On the same day as the updated SPAC filing, the WSJ reported that the SEC is investigating whether Better.com violated federal securities laws, according to a company disclosure.)
While Amazon could be its guinea pig, Better Equity wants to make Unlocker available to employees of public and private companies across the country.
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Source: La Neta Neta
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
