Husband called 16 year old daughter a "whore" and "prostitute"

Our daughter is 16. We found out that she's been paid by some guy at her school to be his "girlfriend". He's gay. He's just not out. So he asked my daughter if he could pay her to be his girlfriend for his family to get off his back. She agreed. They went to homecoming together in October but they really just took pictures to keep his family happy and then he went to dance with another boy. I feel like my husband is completely overreacting. When he found out he said what she's doing is "prostituting" herself and that she's a "whore" and if a guy was going to pay her for sex would she. He was yelling at her so much over this and calling her gross names that she started crying. I told him he needs to stop. There is no reason to treat her this way. He turns his anger on me and said I am telling her it's okay to prostitute herself and be a whore. I ask does he know what a prostitute is because given the information I'm gonna assume her and her "boyfriend" are not having sex. My husband is angry and says I'm downplaying this. I told him if he talks to her like that again I'll sign so divorce papers so fast the ink won't even be dry.