Aurora Investment: Better Overview
Summary of Risks
Risks Related to Our Market, Industry, and General
Economic Conditions
27. Our revenues are highly dependent on macroeconomic
and U.S. residential real estate market conditions.
28. Our business is highly dependent on Fannie Mae and
Freddie Mac and certain other U.S. government agencies,
and any changes in these entities or their current roles
could be detrimental to our business.
29. Our business is significantly impacted by interest rates.
Changes in prevailing interest rates or U.S. monetary
policies that affect interest rates may have a detrimental
effect on our business, financial condition, results of
operations, and prospects.
30. Our business is subject to the seasonality of loan
production, and historical patterns of loan production may
be disrupted due to various social, political and economic
factors which could have a negative impact on our
business.
31. Changes in the GSEs' or the FHA's requirements could
materially and adversely affect our business.
32. Failure to comply with underwriting guidelines of GSES
or non-GSE loan purchasers or insurers/guarantors could
adversely impact our business.
33. Some of our borrowings under finance and warehouse
lines expose us to interest rate risk because of variable
rates of interest that could negatively impact the financing
of our business.
34. A disruption in the secondary home loan market or our
ability to sell the loans that we produce could have a
detrimental effect on our business, financial condition,
results of operations, and prospects.
35. Challenges to the Mortgage Electronic Registration
System could materially and adversely affect our business,
financial condition, results of operations, and prospects.
36. We have operations in India that could be adversely
affected by changes in political or economic stability or by
government policies in the U.S., India or globally.
37. We are exposed to volatility in LIBOR and SOFR, which
can result in higher than market interest rates and may
have a detrimental effect on our business, financial
condition, results of operations, and prospects.
38. Changes in tax laws may materially and adversely affect
us, and the Internal Revenue Service or a court may
disagree with tax positions taken by us, which could
materially and adversely affect our business, financial
condition, results of operations, and prospects, or the value
of our common stock.
39. Terrorist attacks and other acts of violence or war may
affect the lending industry generally and our business,
financial condition, results of operations, and prospects.
40. Our reported financial results may be materially and
adversely affected by future changes in accounting
principles generally accepted in the United States.
41. Our business is subject to the risks of catastrophic
events such as earthquakes, fires, floods and other natural
catastrophic events, interruption by man-made issues
such as strikes and terrorist attacks.
Risks Related to Our Products and Our Customers
42. Our success and ability to grow our business depend
on retaining and expanding our customer base. If we fail
to add new customers, our business, financial condition or
operating results, and prospects could be materially and
adversely affected.
43. We are, and intend to continue, developing new
product offerings and our failure to accurately predict their
demand or growth could materially and adversely affect
our business, financial condition, results of operations, and
prospects.
44. Certain of our loans to customers involve a high degree
of business and financial risk, which can result in
substantial losses that could materially and adversely affect
our business, financial condition, results of operations, and
prospects.
45. We face intense competition that could materially and
adversely affect us.
46. Fraud could result in significant financial losses and
harm to our reputation.
47. The "Better" brand may not become as widely known as
incumbents' brands, the brand may become tarnished, and
we could receive negative public opinion, all of which
could damage our reputation and adversely affect our
earnings.
48. We are subject to significant legal and reputational risks
and expenses relating to the privacy, use, and security of
customer information.
49. Better Settlement Services, LLC's position as an agent
utilizing third party vendors for issuing a significant amount
of title insurance policies could adversely impact the
frequency and severity of title claims.
50. The geographic concentration of our loan productions
may adversely affect our retail lending business, which
would adversely affect our financial condition and results
of operations.
Better
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