Hubbry Logo
Better.comBetter.comMain
Open search
Better.com
Community hub
Better.com
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Better.com
Better.com
Better.com
View on Wikipedia
from Wikipedia

Better Home & Finance Holding Company doing business as Better or Better.com, headquartered in New York City, provides mortgage origination and related services such as title insurance and home insurance online in the United States and United Kingdom.[5]

Key Information

Better processes, underwrites and closes mortgages for lenders and then sells them to secondary investors.[6][7]

History

[edit]

In February 2014, Vishal Garg founded the company after he and his wife had a negative experience obtaining a mortgage to buy their first home.[8]

In 2016, the company launched Better Mortgage and was approved to be a Fannie Mae seller/servicer.[9]

The number of people from traditionally underrepresented groups buying homes through Better's mortgage lending platform increased significantly in 2019, a development that The New York Times suggested was linked to the company's digital processes and minimal reliance on human brokers.[10][11]

In July 2021, Better acquired Trussle, a UK digital mortgage broker, for $9 million.[12] In May 2025, it was sold to OneDome.[13] It also acquired Property Partner, a London-based crowdfunding platform, later that same year.[14] It was also valued at $6 billion in 2021 after receiving $500 million in funding from Japanese investment company SoftBank Group, bringing its total funding to $900 million since its inception in 2014.[15][16]

In December 2021, Garg laid off 900 employees by videoconference and locked their electronic devices from accessing company material.[17][18][19] Garg also made comments to employees that were deemed "unruly", telling employees that he "hired the wrong people" and referring to employees as "slow," "dumb," and "embarrassing".[20] After much criticism, Garg took approximately a month off, returning in January 2022.[21][22][23] The company was also criticized for adding 1,000 workers in India during the same year.[24]

In May 2022, Harit Talwar was hired as chairperson.[25] In August 2022, a list of 250 or more US-based employees who were about to be terminated in another round of layoffs was leaked internally, leading to the termination of the employees who leaked the information.[26] The company was accused of circumventing the Worker Adjustment and Retraining Notification Act of 1988 by laying people off in groups of 249 employees, under the 250 minimum that triggers the act.[27]

In February 2023, the company announced a deal with Amazon whereby Amazon employees are able to pledge their stock as collateral for a loan to cover the down payment on a house purchase, albeit at a slightly higher interest rate.[28]

In August 2023, the company became a public company via a merger with a special-purpose acquisition company that included an investment from SoftBank Vision Fund; shares plummeted immediately after the merger.[29][30][31]

In June 2022, a former senior executive at Better filed a lawsuit alleging that the company misled investors in its filings. After an investigation by the U.S. Securities and Exchange Commission found no issues the Plaintiff voluntarily dismissed the case.[32][33]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Better.com

View on Grokipedia
from Grokipedia

Better Home & Finance Holding Company, commonly known as Better.com, is a New York-based digital mortgage lender founded in 2016 by Vishal Garg as an AI-powered platform to streamline home financing without traditional broker commissions. The company provides online , , and products, leveraging to automate and reduce costs for borrowers. By October 2025, Better.com had originated over $100 billion in home loans since inception, becoming the first to achieve this milestone, with recent quarterly funded volumes reaching $1.2 billion in Q2 2025 amid a focus on AI-driven efficiency and product diversification. The firm went public in 2021 via a SPAC merger and has emphasized technological innovation to capture market share in direct-to-consumer lending, reporting revenue growth to $44 million in Q2 2025 from expanded home equity offerings that grew 166% year-over-year. However, Better.com gained notoriety in December 2021 when CEO Garg conducted a mass layoff of about 900 employees—15% of its workforce—in a single three-minute Zoom call, describing the affected staff as "dead weight" amid a sharp decline in mortgage demand due to rising interest rates. Garg later apologized for the execution, attributing the harsh rhetoric to personal stress, while the company faced executive resignations and further layoffs in 2022 as it navigated industry headwinds from over-expansion during low-rate periods. Despite these setbacks, Better.com restructured to achieve positive equity value through debt retirement and scaled operations, positioning itself as a leader in AI mortgage technology by 2025.

Founding and Business Model

Inception and Core Operations

Better.com was launched in 2016 by Vishal Garg in , following his personal frustrations with the cumbersome traditional process that prompted him to create a digital alternative focused on simplifying home financing. The company originated from Garg's earlier efforts in 2014 to address inefficiencies in lending, emphasizing proprietary technology to enable online with minimal paperwork and expedited timelines compared to conventional methods reliant on manual handling and intermediaries. At its core, Better.com operates as a digital lender, bypassing brokers and leveraging algorithms and AI for to deliver faster approvals and reduced costs. This model achieves average closing times approximately 10 days quicker than industry benchmarks for purchase mortgages, typically within 3-6 weeks from rate lock, by automating verification, pricing, and . Loans originated via Better's platform incur 43% lower production costs than the sector average, attributed to technological efficiencies that minimize human intervention. Nearly 75% of its originations incorporate AI-driven processes for and decision-making, enabling data-informed customization of loan terms based on borrower profiles. The platform integrates ancillary services such as and homeowners insurance to consolidate the homebuying workflow, allowing users to handle searches, policy issuance, and within the same digital interface for seamless execution. protects against ownership defects, while bundled homeowners coverage—offered through Better Cover—ensures compliance with lender requirements without external coordination, further compressing timelines and administrative burdens. This end-to-end approach aims to replicate the efficiency of in transactions, prioritizing transparency and speed over legacy branch-based models.

Technological Platform and Services

Better.com's core technological platform is built around the proprietary Tinman® system, an AI-driven automated rules-based decision designed for and processing. Tinman automates , document handling, income verification, and , enabling up to 40% of loan file reviews to occur without human intervention. This reduces reliance on manual tasks inherent in legacy banking , which often involve prolonged human review and higher susceptibility to errors from data entry or subjective judgments. Integrated into Tinman is Betsy™, an AI-powered assistant that manages over 127,000 customer interactions monthly, providing instant rate quotes, HELOC approvals, and rate locking through voice-enabled, conversational interfaces. These features collectively enhance operational by prioritizing algorithmic precision over labor-intensive processes, yielding loan consultant productivity more than three times the industry median and fulfillment cost reductions of approximately 35%. The platform facilitates a fully digital , including 100% online applications with e-signing, secure file uploads, and a real-time for progress monitoring. Borrowers receive pre-approvals in as little as via soft pulls and instant estimates, with 24/7 rate locking capabilities. This infrastructure supports rapid closings—up to 10 days faster than the industry average—by streamlining document verification and , contrasting with traditional lenders' multi-week timelines and paper-heavy protocols. Better.com's services leverage this platform for purchase mortgages, rate-and-term refinances, cash-out refinances, lines of credit (HELOCs), VA loans, and FHA loans. Better Mortgage offers FHA loans nationwide, with a minimum 3.5% down payment for credit scores of 580 or higher, competitive rates, and lenient credit standards, making them suitable for first-time buyers and those with lower credit or down payments. Complementary offerings include title searches, settlement services, and through its Better Settlement Services division, all integrated into the digital ecosystem to minimize intermediaries. The no-commission , sustained by automation-driven efficiencies, eliminates origination, application, processing, and fees, delivering average lifetime savings of $8,200 for new homeowners and reducing transaction costs by about 1%—or roughly $3,000 on a $300,000 —relative to commission-dependent competitors.

Historical Development

Early Growth and Funding (2016–2020)

In July 2016, Better.com raised $30 million in Series A , enabling the scaling of its digital mortgage origination platform launched earlier that year. The company followed with a $15 million Series B round in February 2017, backed by , Principal Strategic Investments, and Pine Brook, after over $500 million in loans since its 2016 inception. This capital supported operational expansion amid a low-interest-rate environment that boosted refinance demand, with the firm prioritizing technological efficiency to process applications faster than traditional lenders. By August 2019, Better.com secured $160 million in Series C funding at a valuation surpassing $600 million, as it originated $375 million in mortgages monthly and held licenses to operate in 39 states, with applications pending for the rest. The funding facilitated hires in engineering and sales to handle surging volumes, projecting over $4 billion in annual originations by year-end, driven by empirical advantages in unit economics from automated over branch-heavy competitors. In November 2020, the firm closed a $200 million Series D round, elevating its valuation to $4 billion, with cumulative originations reaching $25 billion since 2016 and loan volumes quadrupling year-over-year. This influx, amid sustained low rates, reinforced for compliance across additional states and team growth from approximately 1,900 to over 5,400 employees by year-end, emphasizing scalable processing to capture market share without proportional headcount bloat.

Expansion and Challenges During Market Boom (2020–2021)

During the period from 2020 to 2021, Better.com capitalized on a surge in mortgage refinancing demand driven by historically low interest rates implemented in response to the COVID-19 pandemic, which stimulated a refinancing boom across the U.S. housing market. The company's funded loan volume expanded dramatically, reaching $58 billion in 2021, representing a 139% increase from 2020 levels. This growth was supported by its digital platform, which enabled faster processing and approvals compared to traditional lenders, contributing to efficiency gains in loan origination during the high-demand environment. To accommodate the spike in originations, Better.com pursued aggressive hiring, scaling its workforce from a few hundred employees at the start of 2020 to over 3,000 by late , as the company positioned itself to handle increased volume and prepare for broader market expansion. This rapid buildup allowed Better.com to achieve status, with a valuation climbing to $7.7 billion following a $500 million from SoftBank in early and the subsequent announcement of a SPAC merger with Aurora Acquisition Corp. on May 11, 2021. The merger, expected to close in Q4 2021, reflected investor confidence in the company's technology-driven model amid the favorable market conditions. However, early challenges emerged even during this boom period, including heightened competition from established digital mortgage providers such as , which intensified pressure on and pricing. Unlike many competitors that reported profits from the refi wave, Better.com incurred substantial losses in 2021—estimated in the hundreds of millions—attributable to elevated operational expenses from the swift scaling of staff and , highlighting potential mismatches between hiring pace and metrics. Subtle signs of interest rate sensitivity also appeared toward the end of 2021, as slight upticks in rates began to temper refinancing activity, underscoring the cyclical vulnerability of the business model reliant on low-rate environments. These factors, while not immediately derailing growth, pointed to risks in overexpansion relative to enduring demand patterns.

Leadership and Governance

Vishal Garg's Role and Style

Vishal Garg founded Better.com in 2016 as , motivated by his firsthand frustrations with the inefficiencies and opacity of traditional lending during his own homebuying attempts. Prior to this, Garg established MortgageIT in 2005, a firm specializing in due diligence and , which he sold to DBRS in 2007 after scaling it into a key player in for securitized loans. His experience highlighted systemic frictions in the industry, such as manual processes and intermediary delays, prompting a focus on digital automation to prioritize speed and transparency over legacy practices. Garg's centers on data-driven and operational rigor, favoring empirical metrics like and cost controls over subjective employee sentiment in a cyclical sector prone to boom-bust cycles. He advocates cutting underperformers swiftly to preserve capital and maintain competitiveness, viewing such measures as causally necessary for sustainability amid fluctuating interest rates and regulatory pressures. This approach aligns with first-principles optimization, where resource allocation follows verifiable performance data rather than diffused HR protocols that may dilute accountability, enabling Better.com to fund over $75 billion in mortgages despite market headwinds. Garg's management style is characterized by blunt, high-expectations communication, often employing provocative to rally teams, such as labeling slow-performing groups "dumb dolphins" in a 2020 internal to demand accelerated output and avert competitive threats. While mainstream coverage has amplified these instances as emblematic of —reflecting a toward narrative-driven critiques over contextual analysis in volatile startups—Garg frames them as hyperbolic motivators rooted in the exigencies of survival, where complacency equates to failure. Empirical outcomes substantiate this: under his reinstated post-2022, Better.com stabilized operations, integrated AI for streamlined processing, and pursued public listing, underscoring the efficacy of performance-oriented governance against softer alternatives that risk insolvency.

Executive Changes and Board Dynamics

In December 2021, following the controversial mass layoffs of approximately 900 employees via a Zoom call, three senior communications executives resigned from Better.com: Tanya Gillogley, head of ; Melanie Hahn, head of ; and Patrick Lenihan, of communications. These departures were directly linked to internal backlash over the execution of the layoffs and broader cultural tensions within the company. Concurrently, CEO Vishal Garg temporarily stepped away from his leadership duties amid the ensuing public and employee criticism, with the board announcing his return to full-time CEO responsibilities on January 18, 2022. Garg's reinstatement triggered further executive turnover, interpreted by some observers as reflective of ongoing instability from performance pressures in a cooling market, while others viewed it as necessary adaptation to refocus operations. In February 2022, at least four additional top executives departed, including Clayton Carol, vice president of finance; Paul Tyger, of purchase loans; and others in sales and operations roles. By June 2022, three more senior leaders resigned, comprising the senior vice president of sales and vice president of sales, amid reports of employees "leaving in droves" due to clashes and repeated . These shifts were pragmatic responses to elevated operational costs and market contraction post-2021 boom, though critics argued they exacerbated talent retention issues without resolving underlying governance frictions. Board dynamics were influenced by major investors like SoftBank, which had committed $500 million in April 2021 and exerted pressure on decisions, including urging Garg to resolve internal disputes ahead of the delayed SPAC merger. Upon Garg's 2022 return, two prominent board members resigned as part of a broader realignment, signaling investor-driven efforts to stabilize amid the executive exodus. SoftBank's involvement, including side agreements with Garg assuming heightened personal liability disclosed in SEC filings, underscored a focus on accountability to safeguard the path to public markets, ultimately contributing to operational continuity despite the turbulence. Later appointments, such as as president and COO of the mortgage business in May 2024 and Loveen Advani as Chief Financial Officer in February 2026, reflected ongoing board prioritization of experienced oversight to address prior retention challenges.

Financial Trajectory

Private Funding and Valuation Peaks

Better.com raised approximately $980 million in private funding across six rounds from 2016 to April 2021, primarily from firms and later secondary investors betting on its digital mortgage origination model amid surging refinancing demand driven by historically low interest rates. Early rounds included a $160 million in February 2019 at a $600 million valuation, led by Activant Capital, to support platform scaling. By late 2020, the company secured a $200 million round at a $4 billion valuation, reflecting investor optimism about technology-enabled efficiencies in a market where volumes exploded due to policies maintaining near-zero rates post-COVID-19 stimulus. The funding trajectory peaked in April 2021 with a $500 million secondary round led by , valuing Better.com at $6 billion and bringing cumulative capital to nearly $1 billion; this infusion capitalized on the firm's $14 billion in first-quarter loan funding alone, fueled by a boom that saw industry-wide originations hit record highs under accommodative monetary conditions rather than unique operational superiority. These valuations, while aggressive, aligned with broader hype during a period of abundant liquidity and temporary tailwinds from prolonged low-rate environments, which amplified digital disruptors' apparent scalability without necessarily validating long-term moats. In May 2021, Better.com announced a SPAC merger with Aurora Acquisition Corp., targeting a of $7.7 billion, marking the zenith of its private market enthusiasm before public listing; the deal implied strong growth projections, including over $5 billion in anticipated annual revenue, predicated on sustained market conditions that had enabled rapid loan volume expansion. This peak reflected speculative bets on digital platforms capturing share in a rate-sensitive sector, though subsequent rate hikes would expose vulnerabilities inherent to volume-dependent models rather than flaws in the funding process itself.

SPAC Merger, Public Performance, and Losses

Better Home & Finance Holding Company, formerly Better.com, completed its business combination with Aurora Acquisition Corp., a , on August 22, 2023, following shareholder approval on August 11, 2023. The merger, initially announced in May 2021 at an implied valuation of $7.7 billion, faced delays due to unfavorable market conditions, regulatory scrutiny including an SEC investigation into disclosures that concluded without enforcement action in August 2023, and extensions of the deal's outside date multiple times, including to September 30, 2023. Upon closing, the combined entity began trading on under the ticker BETR on August 24, 2023. Post-merger, BETR shares experienced volatility, with an initial trading price reflecting a sharp discount to the enterprise value of approximately $1.1 billion at closing, and subsequent declines amid broader market pressures on and stocks. By late September 2025, the hovered around $764 million, rising to approximately $1.32 billion by October 25, 2025, still far below the 2021 deal valuation amid persistent operational losses and sector headwinds. In 2024, the company's funded loan volume reached $3.6 billion, a 19% increase from 2023, driven by purchase mortgage originations amid a subdued refinance market. Revenue for the year totaled approximately $131 million on a trailing twelve-month basis by early 2025, reflecting gains in non-interest income from title and other services, though the firm reported a net loss of $206 million, improved from $536 million in 2023 but still indicative of high operating costs and margin pressures. These losses stemmed primarily from the Federal Reserve's interest rate hikes since 2022, which curtailed the low-rate refinance boom that had fueled prior growth, alongside corrections for overhiring during the 2020-2021 market expansion when originations peaked industry-wide. Similar dynamics affected traditional lenders like Rocket Mortgage and United Wholesale Mortgage, which also posted substantial losses and workforce reductions as refinance volumes fell over 80% from pandemic highs, underscoring structural challenges in the sector rather than isolated mismanagement. For the second quarter of 2025, funded volume grew 25% year-over-year to $1.2 billion, with rising 37% to $44 million, primarily from increased purchase activity and ancillary fees. Adjusted EBITDA reflected a $27 million loss, narrower than prior quarters, while the company retired approximately $521 million in debt through and asset sales, bolstering amid ongoing net losses of around $36 million for the period. These metrics highlight a partial recovery in originations but persistent unprofitability tied to elevated rates suppressing demand, with industry peers facing comparable funded volume contractions and requiring cost realignments to adapt.

Controversies and Criticisms

Mass Layoffs and Execution Methods

In December 2021, Better.com CEO Vishal Garg terminated 900 employees—approximately 9% of the company's workforce—during an all-hands Zoom webinar on December 7, citing a combination of market shifts, performance deficiencies, and productivity shortfalls as justifications. The firings occurred abruptly, with affected staff learning of their status en masse without prior individual notifications, and just weeks before the , amplifying perceptions of insensitivity. Garg emphasized that the refinance boom, fueled by historically low interest rates, had reversed amid signals of tightening policy, necessitating rapid cost reductions to align staffing with contracting origination volumes. He further claimed that a portion of the terminated employees contributed to inefficiencies, including excessive time on non-productive activities like anonymous message boards, which he described as tantamount to "stealing" from colleagues and customers. The Zoom-based execution method provoked immediate media condemnation for its impersonal and dehumanizing approach, with outlets portraying it as emblematic of tech-sector ruthlessness amid economic uncertainty. Garg subsequently issued an apology for the call's tone and timing, acknowledging execution flaws while reiterating the layoffs' substantive rationale and regretting delays that he said exacerbated financial strain. Defenders, including Garg, framed the moves as causally essential for survival in a sector where overexpansion during the 2020–2021 low-rate environment led to widespread overstaffing; empirical data showed mortgage applications dropping over 40% year-over-year by late 2021 as rates climbed from under 3% to above 4%. Follow-up reductions ensued in 2022, with an additional approximately 240 positions eliminated in —part of a series of cuts totaling thousands amid persistent market contraction—as the company sought to streamline operations for a higher-rate environment that halved industry-wide lending volumes. These actions, while similarly critiqued for abruptness, were positioned by executives as efficiency imperatives, with Garg later estimating that unchecked hiring and spending had wasted up to $200 million, underscoring the need for decisive pruning to preserve liquidity. Industry analyses noted that such measures, though harshly implemented, aligned with broader sector dynamics where peers enacted comparable or larger staff reductions—often 20–50%—to avert , with some lenders shuttering divisions or exiting markets entirely. Better.com's post-layoff trajectory avoided outright failure, sustaining operations through 2022–2023 despite ongoing losses, in contrast to certain competitors that collapsed under similar pressures.

Internal Culture and Productivity Debates

Better.com's internal has been characterized by a high-pressure environment emphasizing metrics and efficiency, particularly amid the volatile mortgage industry. CEO Vishal Garg publicly criticized underperforming staff in , including a leaked 2021 video where he referred to employees as "lazy dolphins" and accused them of being "TOO DAMN SLOW." Following the December 2021 layoffs, Garg posted anonymously on the professional forum Blind, stating that at least 250 terminated employees had averaged only two hours of work per day while logging eight or more hours, based on management-reviewed . This suggests the use of tracking tools to monitor output in and support roles, aligning with lean operational demands in a cyclical sector prone to fluctuations. Former employees and media reports have alleged a toxic atmosphere, citing frequent profanity-laced company meetings and a fear-based dynamic under Garg's . Such accounts, often amplified in outlets like and —which have shown patterns of prioritizing worker sentiment over quantitative performance in coverage of tech firms—frame the culture as inhumane and demotivating. No major lawsuits specifically alleging systemic toxicity have resulted in regulatory findings or penalties against the company, though employee complaints contributed to Garg's brief 2021 leave. Productivity debates center on whether the emphasis on metrics fostered excellence or burnout. Critics argue the approach eroded without addressing root causes like rapid scaling during the 2020-2021 market boom. Proponents, including Garg's stated rationale, contend it was essential for survival, as evidenced by data indicating widespread underperformance that burdened high-output colleagues in a firm overstaffed relative to post-boom . The mortgage sector's sensitivity to economic cycles—where origination volumes dropped sharply after 2021—necessitated cost controls prioritizing results over comfort, a stance echoed in defenses prioritizing empirical output over subjective feelings. Post-layoff retention of higher performers enabled operational continuity, with the company processing loans and Garg reinstated as CEO by January 2022, absent any enduring legal or regulatory repercussions for cultural practices. This outcome supports the view that performance-focused measures, while harsh, correlated with adaptability in a contracting market, though long-term cultural impacts remain debated without comprehensive independent audits.

Customer Reviews and Feedback

Customer reviews of Better Mortgage are mixed. Professional evaluations from major sites have awarded high ratings, including 4.9 out of 5 stars from Bankrate in December 2025 for the fast online process, real-time rates, quick preapprovals, and low-down-payment options, and 4.5 out of 5 stars from NerdWallet in January 2026 for competitive rates and product variety. Trustpilot shows a 3.9 out of 5 rating based on 1,872 reviews. In contrast, aggregated customer feedback is more negative on some platforms. ConsumerAffairs rates Better Mortgage at 2.2 out of 5 based on 409 reviews, with frequent complaints about poor communication, processing delays, difficulties reaching support, and documentation issues, though some customers praise competitive rates, lack of fees, and efficient online applications. Reviews specifically related to FHA loans are limited, but available experiences generally align with overall lender feedback, without widespread FHA-specific complaints noted.

Achievements and Market Impact

Innovations in Mortgage Processing

Better.com has implemented AI-driven technologies to automate key stages of mortgage origination, enabling rapid pre-approvals and underwriting decisions that bypass manual reviews common in legacy systems. The company's platform processes applications online, using algorithms to verify income via bank statements and assess credit in minutes, as demonstrated by features like Tinman®, which provides rate quotes in seconds and pre-approvals shortly thereafter. This approach disintermediates traditional brokers and physical appraisals where possible, theoretically lowering costs by eliminating intermediary fees, though empirical reductions vary by transaction; user reports indicate total closing costs as low as $900 for some first-time buyers. Processing timelines have been shortened through end-to-end digital workflows, with average closings at 32 days versus the industry standard of 42 days, achieved via automated document handling and virtual notarizations. Innovations like the "One Day Mortgage" initiative deliver commitment letters within 24 hours of application, contrasting with the typical 20-45 days required elsewhere, by leveraging AI for initial validations and reducing human intervention in straightforward cases. In 2024, Better.com introduced , a voice-based AI assistant powered by large language models, which guides users from to conditional commitment, further compressing what traditionally spans weeks into hours for eligible borrowers. These efficiencies extend accessibility to underserved segments by operating without physical branches, relying instead on from digital sources to approve loans for applicants with non-traditional income, such as self-employed individuals verified through 12-24 months of bank data. reveals that such automation disrupts in conventional banking, where layered approvals inflate delays and fees; Better.com's model empirically funds over $100 billion in loans via streamlined verification, though outcomes depend on borrower profiles and market conditions. Despite operational critiques, verifiable metrics confirm faster closures—up to 10 days ahead of peers—prioritizing speed for competitive homebuying without compromising .

Awards, Recognitions, and Product Growth

Better.com received the 2025 FinTech Breakthrough Award for Digital Mortgage Innovation, recognizing its AI-driven lending platform as the leading solution in the category. The company also won the 2025 Banking Tech Award for Best LendTech Solution, highlighting advancements in mortgage technology amid competitive fintech landscapes. Additionally, Better.com was named a finalist in the Best Consumer Lending Solution category at the 2025 Finovate Awards for its Tinman AI Platform and Betsy AI assistant. Individual and product recognitions further underscore operational strengths. Founder and CEO Vishal Garg was awarded Inman's 2025 Best of Finance Award for leadership in AI lending. The company's AI agent Betsy was selected as a finalist for Inman's 2025 Innovator Award. Leah Price, of the Tinman AI Platform, was named one of Mortgage Banker Magazine's Most Powerful Women in Mortgage Banking for 2025, cited for driving AI innovation in access. These honors, issued by industry evaluators post-2021 controversies, affirm technological efficacy despite ongoing debates over whether such accolades adequately address prior criticisms of internal management practices. Better Mortgage also received high ratings from independent review platforms. In December 2025, Bankrate rated Better Mortgage 4.9 out of 5 stars, praising the fast online process, transparency, and affordability. In January 2026, NerdWallet rated it 4.5 out of 5 stars, highlighting similar strengths including competitive rates and transparency. LendingTree noted a Trustpilot rating of 4 out of 5 stars based on customer reviews. Product growth metrics demonstrate expansion in home equity offerings. In Q2 2025, home equity products, including HELOCs, grew 166% year-over-year, contributing to overall funded loan volume of $1.2 billion, a 25% increase from Q2 2024. This surge enabled $80 million in average monthly HELOC and HELOAN originations, with customers consolidating $193 million in high-interest debt for average monthly savings of $1,120. Strategic partnerships bolstered this trajectory; in October 2025, Better.com collaborated with Finance of America to integrate the Tinman AI platform, expanding access to HELOCs, home equity loans, and reverse mortgages for homeowners over 55 via 24/7 digital . Such developments signal product-line resilience, countering perceptions of stagnation tied to earlier financial challenges, though sustained profitability remains contingent on broader market conditions.

Recent Developments

Recovery Efforts and 2024–2026 Financials

In the wake of prior financial challenges, Better Home & Finance pursued operational stabilization through AI-enhanced efficiencies in and conversion rates, alongside a strategic emphasis on its channel to reduce intermediary costs and improve margins. The company also pivoted toward products, scaling HELOC originations from $15 million monthly in January 2024 to $60 million by October 2024, driven by AI-powered that enabled 24-hour approvals and targeted self-employed borrowers previously underserved by traditional lenders. This diversification responded to persistent high rates by capitalizing on equity access demand, with HELOC volume growing 166% year-over-year as of September 2025, facilitating over $193 million in paydown. First-quarter 2025 results showed funded volume of $868 million, up 31% from Q1 2024, with revenue increasing 50% to $33 million amid seasonal headwinds. By Q2 2025, volume rose to $1.2 billion, a 25% year-over-year gain, supported by 35% higher counts at 4,032 funded loans; reached $44 million while net losses narrowed to $36 million, reflecting cost disciplines and channel optimizations. Corporate debt was meaningfully reduced during the half-year, complemented by a $210 million increase in equity, positioning the firm for projected full-year 2025 volume exceeding 2024 levels without reliance on external bailouts. These metrics contributed to stock price volatility with upward surges, including a 31% intraday gain on October 23, 2025, and broader 2025 rallies tied to beats and product announcements, signaling market bets on sustained recovery amid AI tailwinds and equity expansion. In January 2026, Better Home & Finance renewed a $175 million warehouse credit facility on improved terms, including reduced cash deposit requirements, expanded leverage capacity, and higher advance rates on certain non-GSE loans, significantly lowering equity capital requirements for operations. The company reaffirmed its guidance, expecting monthly origination volumes to exceed $1 billion by May 2026 (more than double the average monthly volume of approximately $400 million in the quarter ended September 30, 2025) and to achieve adjusted EBITDA profitability by the end of the third quarter of 2026. No layoffs have been reported in 2025 or 2026, reflecting continued operational stability and the effectiveness of the company's recovery measures.

Expansion into Home Equity and Partnerships

Better.com significantly expanded its home equity lending in 2024, achieving $60 million in monthly volume for home equity lines of credit (HELOCs) and home equity loans (HELOANs) by , a 400% increase from $15 million in January. This rapid scaling established Better as the fastest-growing digital provider in the sector, based on year-over-year comparisons to Q2 2024 market data. The company's Tinman AI platform drove these advancements, enabling One Day HELOC approvals within 24 hours and underwriting based solely on bank statements for self-employed or small business owners, potentially qualifying 36.2 million additional Americans previously excluded by traditional income verification. In September 2025, Better introduced bank-statement-only HELOC underwriting, further streamlining access to equity amid persistent high interest rates. Partnerships bolstered this expansion, including a October 14, 2025, collaboration with Finance of America, where Better's Tinman AI powers HELOCs, HELOANs, and reverse mortgage originations for FOA's customers over 55, providing 24/7 instant access without requiring new infrastructure. On October 21, 2025, Better launched a wholesale HELOC and cash-out equity (CES) platform, integrating AI for higher approval rates and lower interest costs, and securing agreements with 10 mortgage broker partners to distribute these products. Better's AI initiatives in home equity earned recognition, with executive Leah Price honored on October 6, 2025, as one of Mortgage Banker's Association's Most Powerful Women in Banking for her public sector leadership in driving AI innovation and equitable access. These developments diversified Better's portfolio beyond refinancings, enhancing operational resilience in a high-rate environment where U.S. HELOC originations reached an estimated $201 billion in 2024.

References

  1. https://better.com/content/vishal-garg-better-ceo
  2. https://investors.better.com/governance/executive-management/default.aspx
  3. https://better.com/content/ai-mortgage-lending
  4. https://investors.better.com/news/news-details/2025/Better-CEO-Vishal-Garg-Receives-Inmans-2025-Best-of-Finance-Award/default.aspx
  5. https://investors.better.com/news/news-details/2025/Better-Home--Finance-Holding-Company-Announces-Second-Quarter-2025-Results/default.aspx
  6. https://investors.better.com/news/news-details/2025/Better-com-Grows-Home-Equity-Products-166-YOY-While-Helping-Homeowners-Pay-Off-Over-193-Million-in-Debt/default.aspx
  7. https://www.cnn.com/2021/12/07/business/better-com-layoff-nightcap
  8. https://www.nbcnews.com/business/business-news/900-bettercom-employees-learn-jobs-are-eliminated-zoom-call-rcna7738
  9. https://www.nytimes.com/2021/12/08/business/better-zoom-layoffs-vishal-garg.html
  10. https://techcrunch.com/2022/09/28/better-com-employees-detail-their-experiences/
  11. https://investors.better.com/news/news-details/2025/Better-Home--Finance-Holding-Company-Announces-Retirement-of-Approximately-530-Million-Convertible-Notes-Creates-Approximately-265-Million-of-Positive-Pre-Tax-Equity-Value-to-Continue-Expanding-its-AI-Mortgage-Platform/default.aspx
  12. https://www.mpamag.com/us/news/general/better-achieves-record-loan-volume-makes-strides-in-ai-technology/529233
  13. https://www.housingwire.com/company/better/
  14. https://better.com/
  15. https://better.com/with/claims-closing
  16. https://better.com/faq/loan-process/how-quickly-can-i-close-my-loan
  17. https://s202.q4cdn.com/797572621/files/doc_financials/2025/q2/Better-Earnings-Supplement-Deck-Final.pdf
  18. https://bankautomationnews.com/lending/nearly-75-of-better-com-originations-use-ai/
  19. https://better.com/title
  20. https://www.bettercover.com/
  21. https://better.com/faq/title-and-settlement-services/what-are-title-and-title-insurance
  22. https://better.com/faq/homeowners-insurance/is-homeowners-insurance-included-in-a-mortgage
  23. https://investors.better.com/news/news-details/2023/Infosys-and-Better-collaborate-to-offer-Mortgage-as-a-Service/default.aspx
  24. https://better.com/faq/loan-types-and-products/does-better-mortgage-offer-fha-loans
  25. https://better.com/faq/loan-types-and-products/how-do-i-qualify-for-fha-loan-better-mortgage
  26. https://public.com/learn/better-com-ipo-what-to-know
  27. https://www.prnewswire.com/news-releases/better-mortgage-secures-15-million-in-series-b-funding-from-kleiner-perkins-goldman-sachs-and-pine-brook-300404951.html
  28. https://news.crunchbase.com/venture/better-com-raises-160m-series-c-at-600m-valuation-to-speed-up-mortgage-lending/
  29. https://www.forbes.com/sites/elisabethbrier/2019/08/19/bettercom-a-digital-mortgage-disruptor-raises-160m-in-latest-funding-round/
  30. https://www.fintechfutures.com/personal-lending-mortgages/mortgage-platform-better-com-lands-200m-in-series-d-funding
  31. https://wellfound.com/company/better-mg/funding
  32. https://better.com/content/year-of-the-home-2020-review
  33. https://www.housingwire.com/articles/better-com-the-rare-lender-to-post-huge-losses-in-2021/
  34. https://www.forbes.com/sites/dianatsai/2021/10/20/how-bettercom-quietly-became-a-77b-unicorn-personal-insights-from-founder-vishal-garg/
  35. https://techcrunch.com/2022/05/09/the-half-billion-dollar-profit-swing-that-led-to-better-coms-myriad-layoffs/
  36. https://techcrunch.com/2021/04/09/mortgage-is-suddenly-sexy-as-softbank-pumps-500m-in-better-com-at-6b-valuation/
  37. https://www.cnbc.com/2021/05/11/softbank-backed-mortgage-lender-better-in-7point7-billion-spac.html
  38. https://www.businesswire.com/news/home/20210511005602/en/Digital-Homeownership-Platform-Better-to-Become-a-Publicly-Listed-Company-via-Merger-with-Aurora-Acquisition-Corp.-Company-is-Redefining-the-Homeownership-Experience
  39. https://www.forbes.com/sites/davidjeans/2020/11/20/mortgages-fraud-claims-and-dumb-dolphins-a-tangled-past-haunts-bettercom-ceo-vishal-garg/
  40. https://www.cnbc.com/2022/01/18/vishal-garg-who-did-layoffs-via-zoom-returns-as-better-ceo.html
  41. https://fintechleaders.substack.com/p/vishal-garg-ceo-of-bettercom-tough
  42. https://www.forbes.com/sites/jackkelly/2021/12/08/bettercoms-ceo-called-workers-dumb-dolphins-three-executives-quit/
  43. https://www.businessinsider.com/vishal-garg-better-ceo-profile-layoffs-2021-12
  44. https://sliceoftechnology.com/p/27-vishal-garg-founder-ceo-at-better-com
  45. https://www.cnn.com/2021/12/08/business/better-executive-resignations
  46. https://techcrunch.com/2022/02/18/better-com-loses-more-senior-execs-as-employees-brace-for-another-mass-layoff/
  47. https://www.nytimes.com/2022/01/18/business/better-ceo-vishal-garg.html
  48. https://techcrunch.com/2022/02/03/better-com-loses-more-top-execs/
  49. https://www.businessinsider.com/better-executives-redundancies-zoom-layoff-2022-2
  50. https://techcrunch.com/2022/06/21/better-com-loses-three-more-senior-executives-including-svp-and-vp-of-sales/
  51. https://nypost.com/2022/02/04/better-com-loses-more-top-executives-after-ceo-vishal-gargs-zoom-layoff-meltdown/
  52. https://www.cnbc.com/2021/04/08/softbank-invests-500-million-in-digital-mortgage-lender-bettercom.html
  53. https://www.forbes.com/sites/davidjeans/2021/12/10/bettercom-disclosures-show-the-company-had-concerns-about-its-controversial-ceo-long-before-placing-him-on-leave/
  54. https://www.businessinsider.com/read-memo-reinstated-embattled-better-ceo-vishal-garg-2022-1
  55. https://finance.yahoo.com/news/inside-softbank-side-letter-better-121152539.html
  56. https://www.housingwire.com/articles/better-taps-chad-smith-as-new-president-and-coo/
  57. https://investors.better.com/news/news-details/2026/Better-Welcomes-Loveen-Advani-as-Chief-Financial-Officer/default.aspx
  58. https://tracxn.com/d/companies/better-mortgage/__6yeOd8F6cLIUqjiYgAY86RydImatIjO_0oHf8i9EmPU/funding-and-investors
  59. https://www.clay.com/dossier/bettercom-funding
  60. https://techcrunch.com/2021/05/11/digging-into-digital-mortgage-lender-better-coms-huge-spac/
  61. https://pe-insights.com/online-lender-better-raises-200-million-4-billion-valuation/
  62. https://www.housingwire.com/articles/better-com-to-go-public-via-spac-at-7-7b-valuation/
  63. https://www.forbes.com/sites/amydobson/2021/05/12/digital-mortgage-lender-announces-softbank-backed-spac-and-7-billion-valuation/
  64. https://www.businesswire.com/news/home/20230811156751/en/Aurora-Acquisition-Corp.-Shareholders-Approve-Proposed-Business-Combination-with-Better-HoldCo-Inc.
  65. https://techcrunch.com/2023/08/04/sec-ends-investigation-into-better-com-which-is-bleeding-cash-ahead-of-planned-spac-vote/
  66. https://investors.better.com/news/news-details/2023/Better-Home--Finance-Announces-Closing-of-Business-Combination/default.aspx
  67. https://finance.yahoo.com/quote/BETR/
  68. https://pitchbook.com/profiles/company/126271-54
  69. https://www.macrotrends.net/stocks/charts/BETR/better-home-finance-holding/market-cap
  70. https://stockanalysis.com/stocks/betr/
  71. https://www.forbes.com/sites/davidwestenhaver/2022/06/23/mortgage-layoffs-surge-as-rising-rates-crush-lending-activity/
  72. https://lex.substack.com/p/podcast-the-rise-fall-and-turnaround
  73. https://seekingalpha.com/news/4481668-better-home-and-finance-targets-adjusted-ebitda-breakeven-by-q3-2026-driven-by-ai-platform
  74. https://www.housingwire.com/articles/better-mortgage-q4-2024-earnings-vishal-garg-kevin-ryan/
  75. https://www.cnn.com/2021/12/05/business/better-ceo-fires-employees
  76. https://www.bbc.com/news/business-59554585
  77. https://fortune.com/2021/12/03/better-com-ceo-attacks-laid-off-employees-blind-message-board/
  78. https://www.theguardian.com/us-news/2021/dec/10/bettercom-ceo-vishal-garg-time-off-firing-employees-zoom
  79. https://www.foxbusiness.com/business-leaders/better-ceo-time-off-zoom-layoffs-employee-backlash
  80. https://www.housingwire.com/articles/these-mortgage-lenders-have-cut-jobs-in-2022/
  81. https://techcrunch.com/2022/04/19/better-com-conducts-third-round-of-layoffs-in-five-months/
  82. https://www.nytimes.com/2022/04/19/business/bettercom-announces-more-layoffs-citing-mortgage-market-turbulence.html
  83. https://www.forbes.com/sites/jackkelly/2022/04/09/bettercom-ceo-who-fired-dumb-dolphin-workers-over-a-one-way-zoom-call-now-says-he-pissed-away-200-million/
  84. https://www.besmartee.com/blog/digital-mortgage-lender-layoffs-2022/
  85. https://www.nationalmortgagenews.com/list/mortgage-layoffs-in-2023-a-list
  86. https://fred-royster.medium.com/better-com-ceo-vishal-garg-shows-us-how-companies-need-to-lay-off-workers-with-dignity-6258795f6fa0
  87. https://www.businessinsider.com/better-com-ceo-accused-hundreds-layoff-staff-working-2-hours-2021-12
  88. https://abc7news.com/post/bettercom-layoffs-vishal-garg-zoom-call-fired-900-employees-ceo/11311546/
  89. https://www.housingwire.com/articles/vishal-garg-ceo-of-better-com-is-back/
  90. https://www.bankrate.com/mortgages/reviews/better-mortgage/
  91. https://www.nerdwallet.com/mortgages/reviews/better-mortgage
  92. https://www.trustpilot.com/review/better.com
  93. https://www.consumeraffairs.com/finance/better-mortgage.html
  94. https://investors.better.com/news/news-details/2025/Better-Launches-Wholesale-HELOC-and-CES-Platform-to-Offer-Higher-Approvals-and-Lower-Interest-Rates-for-Customers-of-Traditional-Mortgage-Brokers--Signs-10-Mortgage-Broker-Partners-Leading-the-Industry-Forward/default.aspx
  95. https://www.reddit.com/r/RealEstate/comments/q3jkss/my_experience_with_better_mortgage/
  96. https://better.com/content/home-buying-process-timeline
  97. https://finovate.com/better-launches-one-day-mortgage/
  98. https://www.techdogs.com/tech-news/business-wire/bettercom-launches-betsy-the-first-voice-based-ai-loan-assistant-for-the-us-mortgage-industry
  99. https://finance.yahoo.com/news/better-com-ai-driven-heloc-130000326.html
  100. https://www.pymnts.com/consumer-payments-2/2022/better-mortgage-on-digitizing-the-mortgage-loan-process-to-speed-disbursements/
  101. https://www.linkedin.com/posts/betterdotcom_2025-winners-fintech-breakthrough-awards-activity-7309935081396011008-kNhr
  102. https://investors.better.com/news/news-details/2025/Better-com-Selected-as-Finalist-for-the-2025-Finovate-Awards/default.aspx
  103. https://investors.better.com/news/news-details/2025/Better-coms-AI-agent-Betsy-Selected-as-Finalist-for-Inmans-2025-Innovator-Award/default.aspx
  104. https://www.businesswire.com/news/home/20251006812454/en/Better.coms-Leah-Price-Named-One-of-Mortgage-Bankers-Most-Powerful-Women-in-Mortgage-Banking
  105. https://www.lendingtree.com/home/mortgage/better-mortgage-review/
  106. https://finance.yahoo.com/news/better-com-grows-home-equity-130000564.html
  107. https://investors.better.com/news/news-details/2025/Finance-of-America-Partners-with-Better-com-to-Leverage-Tinman-AI-Platform--Expanding-Home-Equity-Product-Suite-for-Homeowners-Over-55/default.aspx
  108. https://www.businesswire.com/news/home/20251014943889/en/Finance-of-America-Partners-with-Better.com-to-Expand-Home-Equity-Offerings-Through-AI-Powered-Tinman-Platform
  109. https://investors.better.com/news/news-details/2025/Better.com-Becomes-the-Fastest-Growing-Digital-Home-Equity-Lending-Provider--Scales-Home-Equity-Product-Growth-to-60M-Per-Month/default.aspx
  110. https://investors.better.com/news/news-details/2025/Better-Home--Finance-Holding-Company-Announces-First-Quarter-2025-Results/
  111. https://www.investing.com/news/transcripts/earnings-call-transcript-better-home-and-finance-q2-2025-sees-revenue-rise-93CH-4177859
  112. https://www.timothysykes.com/news/better-home-finance-holding-company-betr-news-2025_10_23-2/
  113. https://finance.yahoo.com/news/why-better-home-finance-holding-170821923.html
  114. https://investors.better.com/news/news-details/2026/Better-Mortgage-Renews-175-Million-Warehouse-Facility-on-Improved-Terms-Reaffirms-Volume-and-Earnings-Guidance/default.aspx
  115. https://www.housingwire.com/articles/better-com-helocs-home-equity-400-percent-growth/
  116. https://www.businesswire.com/news/home/20250930300471/en/Better.coms-AI-Driven-HELOC-Underwriting-Makes-Approval-with-Bank-Statements-Only-Possible-for-36.2M-Self-Employed-or-Small-Business-Owner-Americans
  117. https://www.forbes.com/advisor/d/bettercom-one-day-heloc-24-hour-approval/
  118. https://www.nasdaq.com/press-release/better-launches-wholesale-heloc-and-ces-platform-offer-higher-approvals-and-lower
  119. https://www.investing.com/news/company-news/bettercom-launches-wholesale-heloc-and-ces-platform-with-ai-support-93CH-4299111
Add your contribution
Related Hubs
User Avatar
No comments yet.