Better Home & Finance Holding Co (NASDAQ: BETR)

Better Home & Finance Holding Co is a technology-enabled homeownership company that offers mortgage, home equity, and other homeownership products through a digital platform. The company supports customers across key stages of the homeownership cycle, including purchase, ownership, refinance, and sale. Founded in 2015, Better Home & Finance operates in the financial services industry, specifically within the mortgage and homeownership sector. The company's approach is technology-first, aiming to address inefficiencies in the homeownership journey that traditional methods have not resolved.

Better Home & Finance generates revenue through a range of products and services designed to support the homeownership lifecycle. The company offers consumer-facing mortgage and related homeownership products, as well as technology-enabled offerings provided to third-party strategic partners. Primary products include residential mortgage loan products for home purchase and refinance, home equity lines of credit, and closed-end second-lien loans. The company also provides access to homeowners insurance policies through a digital marketplace of insurance partners. Revenue is generated through the sale of mortgage loans to a network of loan purchasers, including GSEs, banks, insurance companies, asset managers, and mortgage real estate investment trusts. Additionally, the company earns fees from third-party providers for referrals and services offered through its Better Plus platform.

• Home Finance: This segment offers a range of residential mortgage loan products for home purchase and refinance, including cash-out refinance and debt consolidation, and home equity across various maturities and interest rate structures. Products include GSE-conforming loans, Federal Housing Administration (FHA) insured loans, Department of Veterans Affairs (VA) guaranteed loans, and jumbo loans. The company sells these mortgage loans to a network of loan purchasers, earning revenue upon the sale of each loan. As of December 31, 2025, Better Home & Finance was licensed to originate mortgage loans in all 50 states and the District of Columbia, catering to a broad market of homeowners and prospective homeowners.

• Tinman AI Platform: The Tinman AI Platform includes access to proprietary technology for mortgage origination activities, such as underwriting, loan processing, compliance support, capital markets connectivity, and related back-office functionality. Partners integrate Tinman into their existing internal digital operations to support mortgage origination activities and pay fees to the company based on funded loans processed through the platform. In other arrangements, Tinman is integrated into a strategic partner's customer-facing application or workflow, and the company originates mortgage loans directly using its Home Finance products for the partner's customers. This segment caters to third-party strategic partners and mortgage operators seeking to enhance their mortgage origination capabilities.

• Better Plus: This segment complements residential mortgage loan products through a set of non-mortgage homeownership products and services offered primarily through third-party strategic partners. These offerings include referrals to real estate agents, title insurance and settlement services provided through third-party providers, and access to homeowners insurance policies through a digital marketplace of insurance partners. The company generally acts as an agent or referral source and receives fees from third-party providers. Better Plus products are integrated into the platform to support customers throughout the homeownership process, catering to a market of homeowners seeking comprehensive homeownership solutions.

• International Lending & Services: Through its U.K. subsidiary, Birmingham Bank, and related U.K. homeownership businesses, the company offers residential mortgage and related financial products to customers in the United Kingdom. The U.K. operations utilize a technology-first approach to address a market encumbered by legacy inefficiencies. However, the company is in the process of exiting its non-core international operations, indicating a strategic shift towards focusing on its core U.S. market.

Better Home & Finance operates in a competitive industry, facing competition from traditional banks, non-bank mortgage lenders, credit unions, and regional and local lenders in its Home Finance business. In the Tinman AI Platform business, the company competes with mortgage technology providers and loan origination system (LOS) platforms that offer software and workflow tools to lenders and mortgage operators. Key competitors may include established mortgage technology platforms with large installed customer bases. The company's competitive advantages include a superior customer experience enabled by its integrated platform, a highly scalable platform in breadth and depth, lower labor costs through automation, a data advantage that allows for optimized customer experience and operational efficiency, and limited credit exposure due to its business model of manufacturing loans to sell to secondary investors and partners.

The company's customer base is broad, catering to homeowners and prospective homeowners across the United States. Better Home & Finance serves customers through two primary channels: direct-to-consumer (D2C) and its platform channel. In the D2C channel, customers engage directly with the company through its website and complete the mortgage process under the Better Home & Finance brand. In the platform channel, the company engages with borrowers through third-party partners and its in-market originations business, utilizing Tinman as the underlying technology platform to support mortgage origination activities. The company's customer base includes individuals seeking mortgage loans, home equity lines of credit, and related homeownership services, as well as third-party strategic partners utilizing the Tinman AI Platform to enhance their mortgage origination capabilities.