Key facts
- Better's $34.1 million in annualized savings is progress toward a $64.2 million cost-reduction target.
- Better's wholesale platform now includes 43 brokerages, 1,382 brokers and $378 million in trailing 12-month origination volume.
- Better received five term sheets for approximately $50 million in debt financing tied to its planned sale of Birmingham Bank.
- Better hired executive search firm Daversa Partners to lead its CEO search.
- Better launched an AI-powered home equity line of credit product with a large existing partner and plans live customer testing before full volume.
Better Home & Finance Holding Co. said on November 10 that annualized cost savings under its Better 2.0 plan had reached $34.1 million, up $3.7 million from the $30.4 million it reported in the plan's first two weeks. The company disclosed the figure in its fifth weekly scorecard, which it releases each Tuesday until it reaches adjusted EBITDA breakeven. The savings are progress toward a $64.2 million cost-reduction target.
The update followed Better's third-quarter earnings, reported on November 9. The company recorded a net loss of $36.5 million, compared with $30.6 million in the second quarter and $39.1 million in the same period a year earlier. It originated $1.4 billion in loans during the quarter, up 15% year over year.
Founder Vishal Garg told analysts the company had removed managers representing more than $3.5 million in annualized savings and eliminated its home lending associate position, which handled early customer outreach and application preparation before transferring borrowers to loan officers. Garg said those responsibilities are now handled by Better's AI system, Betsy.
On the wholesale side, Better said its platform now includes 43 brokerages representing 1,382 brokers and $378 million in trailing 12-month origination volume, compared with 39 signed brokerages reported during the earnings call. The company also launched an AI-powered home equity line of credit product with a large existing partner and plans to complete live customer testing before ramping up to full partnership volume. It said it is working with three other partners and pursuing a revived large-scale partnership.
Better said it received five term sheets for approximately $50 million in debt financing tied to its planned sale of Birmingham Bank and is negotiating terms with prospective financing partners. It hired Daversa Partners to lead its CEO search; next steps include finalizing the candidate profile and beginning outreach.