Better Home & Finance (BETR) Status Update summary

Business model evolution and technology

• Transitioned from a refinance-focused model to a scalable, tech-driven platform emphasizing purchase mortgages and home equity products, leveraging AI and machine learning for efficiency and speed.

• Developed Tinman, a proprietary matching engine, and Betsy, an AI loan officer, to automate and optimize the mortgage process, resulting in lower costs and higher approval rates.

• Expanded product offerings, notably in home equity, achieving a $1 billion run rate and 250% growth year-over-year.

• Operates a balance sheet-light model, acting as a network between consumers, partners, and investors, minimizing credit and liquidity risk.

• Restructured the balance sheet, retiring $375 million in debt for $110 million, improving equity and enabling strategic partnerships.

Strategic partnerships and growth outlook

• Secured major partnerships, including with Finance of America and a top-five mortgage originator, to drive B2B volume and expand Tinman adoption.

• Launched a B2B platform model, offering Tinman as a software solution to non-bank originators and large financial institutions.

• Pipeline strategy targets industry leaders in various verticals, aiming for a land-and-expand approach to capture significant market share.

• Over $100 billion in volume already signed up on the platform, with expectations for further growth as new partnerships are deployed.

• Goal to achieve positive Adjusted EBITDA by Q3 2026, driven by scaling D2C, Neo, and B2B partnerships, with improving margins from software and AI services.

Technology and operational efficiency

• Tinman enables data field-level matching, automating underwriting and fulfillment for any financial asset, not just mortgages.

• Betsy, the AI loan officer, delivers accurate calculations, fraud detection, and higher approval rates, outperforming human underwriters.

• Achieved 70% lower production costs and 30x lower error rates compared to industry averages.

• Delinquency rates are one-third of the industry average, even with broader underwriting criteria.

• Neo platform acquisition reduced customer acquisition costs to zero and improved conversion rates by leveraging local loan officer relationships.