Better, Neo Home Loans hype addition of Loandepot team

Better Home & Finance's burgeoning retail operation is suggesting its technology bona fides, and a transparent compensation structure, helped lure a top lending team from Loandepot.

Neo Home Loans powered by Better said it's welcoming the Gustafson Team, a Colorado-based trio that funded over $110 million in origination volume last year. Although Better and Neo announced the move a month ago, Thursday's press release was unusual in that it touted at length the company's advantagesthat enticed the team to leave its longtime employer. 

"We had a good thing going," said Gene Gustafson, branch leader at Neo, in a press release. "But when we looked at where the industry is heading and what Neo is building, the decision became clear."

Better has struggled financially since going public in 2023 but executives are bullish on artificial intelligence tools the company says have significantly lowered origination costs compared to its peers. 

The company added the Neo business in late 2024, and the retail operation has grown quickly, generating over $400 million in volume in the second quarter. That business is also the subject of a poaching and theft of trade secrets lawsuit from former Neo partner Luminate Home Loans. 

The Gustafson Team departure also comes at a significant moment for Loandepot, which is reshaping its leadership under the guidance of founder and returning CEO Anthony Hsieh. The Southern California-based lender and servicer posted an eight-figure loss in the recent second quarter, but its performance has improved in recent periods. 

A spokesperson for Loandepot declined to comment Thursday, while Neo President Ryan Grant didn't immediately respond to a follow-up request for comment. 

The team left Loandepot after 15 years because of factors including Neo's "transparent, entrepreneurial compensation model", according to the press release. 

"The move reflects a growing shift among elite mortgage originators toward technology-enabled platforms that empower them to scale with integrity and purpose," the announcement read. 

Loandepot has over 1,600 sponsored mortgage loan originators, according to Nationwide Multistate Licensing System records, and recently named a company manager to the firm's newly-created president of retail lending position. 

Better counts over 400 sponsored MLOs and 43 active branch locations. The poaching lawsuit from Luminate remains pending in a federal court. 

The complaint regarding the mortgage professionals and the nature of their departure is similar to numerous other suits between lenders, including instances in which the companies made public announcements about the hirings.