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(“Aurora”), Better Holdco, Inc.
−Removed: (“Pre-Business Combination Better”), and Aurora Merger Sub I, Inc., formerly a wholly owned subsidiary of Aurora (“Merger Sub”).
+Added: (“Pre-Business Combination Better”), and Aurora Merger Sub I, Inc., formerly a wholly owned subsidiary of Aurora (“Business Combination”).
In connection with the closing of the transactions contemplated by the Merger Agreement, the Company’s Class A common stock and Warrants began trading on the Nasdaq Global Market and Nasdaq Capital Market, respectively, under the ticker symbols “BETR” and BETRW.” On March 13, 2024, the listing of the Company’s Class A common stock and warrants transferred from the Nasdaq Global Market to the Nasdaq Capital Market.
−Removed: Unless otherwise indicated, references to “Better,” “Better Home & Finance,” the “Company,” “we,” “us,” “our” and other similar terms refer to (i) Pre-Business Combination Better and its consolidated subsidiaries prior to the Closing and (ii) Better Home & Finance and its consolidated subsidiaries following the Closing.
−Removed: Our mission is to build a homeownership platform that revolutionizes the consumer experience of finding, financing, insuring and selling a home.
−Removed: The home is among the world’s largest, oldest, and most tangible asset classes—with annual spend across the residential housing market accounting for approximately $4.5 trillion in 2023 in the U.S., and approximately 15-18% of annual U.S.
−Removed: GDP since 2001, according to the National Association of Home Builders.
−Removed: And yet, while numerous adjacent industries—from auto to health to travel to food—are undergoing end-to-end digital transformations, the homeownership journey remains mired in legacy inefficiencies.
−Removed: High transaction costs, regulatory complexity, and many middlemen come at the expense of the consumer, leading to frustration and impeding digital adoption.
+Added: Unless otherwise indicated, references to “Better,” “Better Home & Finance,” the “Company,” “we,” “us,” “our” and other similar terms refer to (i) Pre-Business Combination Better and its consolidated subsidiaries prior to the closing of the Business Combination and (ii) Better Home & Finance and its consolidated subsidiaries following the closing of the Business Combination.
+Added: We are a technology-enabled homeownership company that offers mortgage, home equity, and other homeownership products through a digital platform.
+Added: Our services are designed to support customers across key stages of the homeownership cycle including purchase, ownership, refinance, and sale.
+Added: Founded in 2015, we built our business with a technology-first approach.
+Added: Our proprietary platform supports both consumer-facing offerings and offerings provided to third-party strategic partners and is designed to scale across products, channels, and market conditions.
+Added: The home is among the world’s largest, oldest, and most tangible asset classes and yet, while other industries are undergoing end-to-end digital transformations, the homeownership journey remains mired in legacy inefficiencies.
+Added: High transaction costs, regulatory complexity, and sprawling intermediary stack come at the expense of the consumer, leading to frustration and impeding digital adoption.
The homeownership experience is unnecessarily slow, convoluted, and analog;
in sum, we believe it is broken.
−Removed: We think it is inevitable that the homeownership journey will be digitized.
−Removed: With that, we believe there will come tremendous benefits to the consumer.
−Removed: Seamless online experiences driven by automation, and efficient technology infrastructure will make buying a home faster, more cost-efficient, more transparent, and more accessible.
−Removed: We believe we are positioned to be at the forefront of this digital revolution.
−Removed: We see a future in which every consumer can seamlessly buy, sell, refinance, and insure their home digitally.
−Removed: We were born digital in 2015, and since the beginning, we have been relentlessly digitizing and automating the home finance workflow, adding new homeownership products tailored specifically to our customers’ needs, and striving to improve every aspect of the customer experience.
−Removed: We have built a data processing engine that ingests thousands of data points on each customer and property in our system, as well as a workflow engine that provides customers with personalized home finance, real estate, and insurance product selections.
−Removed: This advanced technology stack, which we call Tinman, allows us to deliver on what we believe is most important for our customers:
+Added: Our advanced technology stack, which we call Tinman®, enables us to deliver on what we believe is most important for our customers:
a seamless experience, time saved, and higher certainty on the single biggest financial decision of their lives.
−Removed: We started by building a refinance offering, which we had the opportunity to lean into and rapidly scale during 2020 and the first half of 2021, benefiting from the tailwind of a COVID-driven low interest rate environment.
−Removed: While the interest rate-driven macroeconomic environment has since changed and we have scaled back substantially to preserve capital and seek to mitigate losses, we believe the customer value proposition of digital, transparent homeownership products has strong consumer demand through all cycles and we continue to invest in this mission.
−Removed: We also continue to invest in our automated processes and seek to grow our purchase business, as well as improve the cross-sell of non-mortgage products across our homeownership platform.
−Removed: We believe the digital-first nature of our business positions us to build the next generation homeownership platform.
−Removed: Tinman allows us to reduce origination costs and friction associated with the legacy homeownership process, shifting the model from one built on decades-old legacy systems to one leveraging automation and AI to streamline the mortgage process on behalf of customers.
−Removed: Because we are digitally native, we have been able to re-architect the problematic aspects of traditional industry processes in favor of the consumer, delivering them value through our streamlined digital process, faster turnaround times, and greater certainty relative to industry averages.
−Removed: For example, traditional industry processes include the manual transfer of paper-based or e-mail documents that can be costly and time intensive, as well as static loan pricing, where if a piece of data changes in the loan file it can take multiple days to get refreshed pricing, causing delays
−Removed: for the customer.
−Removed: Tinman allows customers to see their rate options in as little as three seconds, get pre-approved in as little as three minutes, lock in rates and get connected to a real estate agent in as little as 30 minutes, get a commitment letter for their mortgage in as little as one day through One Day Mortgage and close their loan in as little as three weeks.
−Removed: Our “One Day Mortgage” program, which was launched in January 2023, allows eligible customers to receive an underwriting determination on their mortgage loan application, in the form of a commitment letter, within 24 hours after locking in their interest rate.
−Removed: The commitment letter confirms that the customer qualifies for the mortgage loan terms based on a comprehensive review of their creditworthiness, including verification of income, assets, debts, and other forms of credit evaluation, as well as confirms our commitment to lend, subject to certain customary terms.
−Removed: While there are additional conditions that must be met after the commitment letter is provided in order to close the mortgage transaction (such as a property appraisal and confirmation of insurance), the objective of the One Day Mortgage program is to give customers more certainty and peace of mind during the loan origination process.
−Removed: As a result, we have seen strong customer interest since we launched our “One Day Mortgage” program.
−Removed: In addition, some traditional lenders will only provide a single or few loan pricing options to customers, because acquiring and analyzing pricing data from multiple loan purchasers can be a time and labor intensive process.
−Removed: Our process for incorporating loan pricing is digital and automated, and therefore we are able to dynamically surface multiple pricing options that can be flexibly adjusted if the customer wants to change aspects of the loan.
−Removed: While we remain focused on enhancing our automated systems, in a manner that we believe will improve efficiency and reduce labor hours devoted to loan production, there remain numerous parts of our loan production process that require human labor, including our sales team interfacing with borrowers who have questions, the manual gathering and verification of data on more complex loan files (such as investment properties or self-employed borrowers), as well as the human review of loans by licensed underwriters and quality control team members to minimize potential loan file errors.
−Removed: The human labor required in our loan production process is one component that requires us to incur higher mortgage platform expenses if our origination volume grows.
For the year ended December 31, 2025, our Funded Loan Volume was $4.7 billion, compared to $3.6 billion for the year ended December 31, 2024, representing a year-over-year increase of approximately 32%.
Our revenue was $164.9 million for the year ended December 31, 2025, compared to $108.5 million for the year ended December 31, 2024, representing a year-over-year increase of approximately 52%.
−Removed: We recorded a net loss of $206.3 million for the year ended December 31, 2024, compared to a net loss of $536.4 million for the year ended December 31, 2023.
−Removed: We expect that we may incur net losses in proximate future periods due to the current interest rate environment, as well as continued investments that we intend to make in our business (including investments to expand product offerings and in technology).
−Removed: According to data from the U.S.
−Removed: Federal National Mortgage Association (“Fannie Mae”), aggregate U.S.
−Removed: single-family mortgage originations increased to $1.7 trillion in 2024, which was up from $1.5 trillion in 2023, but remained well below the $2.37 trillion in 2022 and $4.57 trillion in 2021.
−Removed: The decline from 2020-2022 origination levels has significantly negatively impacted our business and financial results.
−Removed: We understand that our customers do not want a real estate agent, a mortgage, or an insurance policy—they want a home.
−Removed: We seek to empower consumers to navigate the entire homeownership journey, starting with house hunting, and through buying, owning, refinancing and selling, all in one place.
−Removed: A real estate agent and a mortgage pre-approval are often the first steps in our customers’ journeys, so that is where our trusted relationship begins, and we intend in the future to expand that relationship throughout their entire homeownership experience.
−Removed: We offer Home Finance (home loan) products and Better Plus (non-mortgage) products, including real estate services and insurance products.
−Removed: Our broad suite of products and services is powered by our core technology platform, Tinman.
−Removed: Tinman also allows us to build a more valuable, deeper relationship with our customers by offering them multiple products and services throughout the homeownership journey, all with the same digitally-native, seamless ethos.
−Removed: We believe the mortgage is the most complex and data-rich product throughout the homeownership journey and, subject to data protection and privacy considerations, our system extracts data on each consumer and property and uses it to surface the most relevant products for a given consumer and home with the goal of minimizing incremental customer acquisition cost.
−Removed: We surface these products before, during and after the point of mortgage, in an effort to build long-term customer relationships and expand our customer lifetime value beyond a single transaction.
−Removed: Home Finance offers a selection of loan products for home purchase and refinance, including cash-out refinance and debt consolidation, across a range of maturities and interest rates.
−Removed: We offer our customers GSE-conforming loans, U.S.
−Removed: Federal Housing Administration (“FHA”) insured loans, U.S.
−Removed: Department of Veterans Affairs (“VA”) guaranteed loans,
−Removed: and jumbo loans.
−Removed: We sell the loans that we originate to a network of loan purchasers, including government-sponsored enterprises (“GSEs”), banks, insurance companies, asset managers, and mortgage real estate investment trusts, through our proprietary matching engine, and we earn revenue on the sale of each loan.
−Removed: The loans that we originate, including the vast majority of the loans we sell through our capital markets platform, largely conforms to GSE standards, specifically those of Fannie Mae and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), which have specific loan to value requirements, and provide a deep, liquid and reliable market for the sale of the bulk of our loans.
−Removed: For the years ended December 31, 2024 and 2023 92% and 96%, respectively, of our Total Loans, excluding home equity line of credit (“HELOC”) loans, conformed to GSE standards.
−Removed: For our loan products offered through Home Finance, as of December 31, 2024, we are licensed to operate in all 50 states and the District of Columbia across various credit and income profiles.
−Removed: For the year ended December 31, 2024, our average customer had, approximately, an average loan balance of $306,000, age of 43, FICO score of 754, and annual household income of $192,000.
−Removed: We also offer loan products to serve our customers throughout their homeownership lifecycle.
−Removed: In particular, we offer home equity lines of credit and closed-end second lien loans to enable customers to access existing equity in their homes.
−Removed: Through the expansion of Home Finance products, our goal is to be able to serve each and every potential customer that comes to our website.
−Removed: Through our Better Plus products, we seek to build long-term customer relationships by consistently delivering value for their homes.
−Removed: We achieve this through a suite of non-mortgage products including real estate agent services (Better Real Estate) offered by our network of third-party partner real estate agents, and through our insurance partners, title insurance and settlement services (Better Settlement Services), and homeowners insurance (Better Cover).
−Removed: Through Better Real Estate, we refer prospective home buyers to local real estate agents, who help them identify and visit homes and navigate the purchase process.
−Removed: We provide real estate services through a referral network, where we introduce customers to a network of external real estate agents that assist them with searching for a home, for which we receive a fee for our cooperative brokerage arrangement.
−Removed: In addition to real estate services offered through our third-party partner real estate agents, until the second quarter of 2023, we offered real estate services through in-house Better Home & Finance-employed real estate agents.
−Removed: Because the partner agent model enables us to flexibly refer customers to over 7,000 agents nationwide without maintaining an in-house agent footprint, we believe the partner agent model is more sustainable from a cost perspective, particularly in lower volume market environments.
−Removed: Through Better Settlement Services, we offer title insurance primarily as an agent and work with third-party providers that underwrite the title insurance policies.
−Removed: Currently as an agent, we rely on partners for aspects of our operational fulfillment and do not take underwriting risk and do not assume the risk in a claim against the policy.
−Removed: In addition, we work with partners to offer settlement services during the mortgage transaction, which include wire services, document preparation, and other mortgage settlement services.
−Removed: Through Better Cover, we offer customers access to a range of homeowners insurance policy options through our digital marketplace of third-party insurance partners.
−Removed: We act as an agent to insurance carriers and receive an agency fee from the insurance carriers for policies sold and renewed.
−Removed: Third-party insurance and service providers, as marketplace participants, integrate digitally into our technology platform to offer customers Better Plus homeownership products.
−Removed: We see the Better Plus products as a way to continue providing additional customer utility and savings, as well as diversifying our revenue streams.
−Removed: These additional products are embedded directly into the customer experience of our platform, making it easy for customers to purchase these products as part of the mortgage process.
−Removed: We are continuing to test new products to optimize our offerings.
−Removed: Our Technology Platform
−Removed: We started in 2015 with the core thesis that homeownership should be seamless and digital, with the customer at the center and technology as the backbone.
−Removed: With that ethos in mind, we built Tinman, our proprietary loan origination platform that uses AI and automation to deliver a frictionless, user-friendly experience to our customers.
−Removed: Unlike traditional real estate companies that often use manual, siloed, human-driven workflow systems to interact with customers or process internal tasks, we built Tinman to be the primary, machine-driven platform that sits at the center of our loan manufacturing process, interacting with customers, team members, marketplace participants and loan purchasers and directs all constituents in our ecosystem through the home buying or refinancing process into its decision engine.
−Removed: Along the way, Tinman, among other things, captures data from third parties via application program interfaces, or APIs, provides customer service and education, surfaces rates to our customers, performs underwriting calculations, generates documents, and supports our team members.
−Removed: Tinman’s machine-driven decision engine powers internal workflows and increases our teams’ productivity by automating data-collection, orchestrating complex tasks between our customers and teams to facilitate the underwriting process, guiding home purchase or refinancing transactions from beginning through to closing (for which in part we use third-party software), as well as dynamically matching customers with loan purchasers to ensure best execution and the lowest rate for our customers.
−Removed: Through Tinman, we have “taskified” the loan production process, breaking down traditionally specialized, complex tasks that require high-cost labor into machine-driven tasks that can be completed by non-specialized, lower-cost labor, and eventually automated altogether.
−Removed: Our customers use Tinman to navigate their homeownership journey with us.
−Removed: Customers interact digitally with Tinman, uploading information, completing tasks, and viewing their rates, enabling them to obtain or refinance a loan, insurance policy, or real estate agent on their own schedule.
−Removed: Tinman seamlessly embeds Better Plus products directly into the loan workflow for the customer, allowing them to add real estate agent services, title insurance, homeowners insurance and settlement services, in each case if available to the customer, with just a few clicks.
−Removed: Our systems architecture is designed to store customer and property data in flexible graphs, to be seamlessly integrated into multiple products in parallel, within a singular seamless customer flow.
−Removed: In parallel, Tinman coordinates and supports the required tasks for Home Finance and Better Plus products.
−Removed: Tinman gathers data from our customers and automatically from third parties through APIs.
−Removed: Tinman uses its automated decision engine to dynamically generate tasks for every loan based on the customer’s financial profile, property type, and the requirements of the financial products they are exploring.
−Removed: Tinman’s workflow system then completes certain tasks through automation and assigns other remaining tasks to our team members for completion.
−Removed: We believe that as more processes are automated, each loan will require fewer labor hours to complete, which meaningfully reduces our cost to manufacture.
−Removed: Nevertheless, while we remain focused on enhancing our automated systems, including our automated decision-making engine, Tinman, in a manner that we believe will improve efficiency and reduce labor hours devoted to loan production, there remain numerous parts of our loan production process that require human labor.
−Removed: Additionally, Tinman uses advanced applications of AI to enhance workflows.
−Removed: In the third quarter of 2024, we launched Betsy ™, the first voice-based AI loan assistant for the U.S.
−Removed: Mortgage Industry, to enhance customer experience, improve loan-team efficiency, and further accelerate our end-to-end technology platform Tinman.
−Removed: Betsy leverages AI and large language models to accelerate a customer’s mortgage journey from pre-approval start to closed loan.
−Removed: Betsy is programmed to verbally communicate with customers to answer mortgage application inquiries and to collect outstanding
−Removed: application data.
−Removed: Overtime, we expect that Betsy will be able to accurately answer detailed questions and efficiently assist with outstanding tasks, enabling faster service times, enhanced self-service capabilities, improved customer engagement, and greater sales efficiency.
−Removed: In addition to Betsy, we are continuously testing a variety of applications of AI within Tinman, both for internal and consumer-facing efficiency.
−Removed: Through our AI initiatives, we seek to drive sales and underwriting productivity, improve customer routing, and expedite structured data capture.
−Removed: Our Customer Acquisition Channels
−Removed: We reach our customers through two main channels, a direct-to-consumer channel (D2C) and a business-to-business channel (B2B).
−Removed: In our D2C channel, we serve customers from their first website visit to close entirely under the Better Home & Finance brand.
−Removed: We have historically relied on positive word of mouth, customer reviews, and trusted third-party recommendations to grow our business, together with performance marketing (pay-per-click) and other paid digital media.
−Removed: Compared to other large brands in financial services that rely heavily on brand marketing, we have historically spent less on brand marketing and advertising, with the balance of our marketing and advertising spend primarily comprised of performance marketing (pay-per-click) and other paid digital media.
−Removed: Today, our marketing approach primarily includes performance marketing (pay-per-click) and other paid digital media.
−Removed: Our performance marketing strategy drives high-intent prospective customers to our platform by purchasing targeted leads from our lead aggregators.
−Removed: Further, our paid digital media strategy leverages search engines and social media channels to engage with our customers.
−Removed: We strive to optimize and expand our customer acquisition strategies by further penetrating both existing and new performance marketing and digital media channels.
−Removed: In our B2B channel, we develop longer-term, enterprise-level relationships with leading consumer brands through advertising relationships (in which we present advertising on a third-party’s platform—often involving consumer incentives or discounts—allowing us to drive our partners’ customers or rewards program members to our Better Home & Finance-branded platform), as well as through an integrated relationship model (in which our technology platform and team members power the end-to-end home finance experience on behalf of a third-party lender through an integrated, co-branded customer experience).
−Removed: Additionally, we seek to further diversify Better’s distribution channels by bringing leading mortgage and financial technology brands directly within our company, to be powered by Tinman technology, under their existing strong brands.
−Removed: We believe we are able to lower our customer acquisition cost by advertising to our B2B partners’ large addressable consumer segments to drive customers to our platform, without the need for high-cost brand advertising.
−Removed: We provide our B2B partners with access to Tinman technology, thereby enabling them to improve efficiency and reduce loan manufacturing costs.
−Removed: We provide our B2B partners’ customers with the same superior customer experience and broad product offerings as our D2C customers.
−Removed: • Integrated Relationships :
−Removed: Historically, we have generated business through our ‘Mortgage-as-a-Service’ offering, which enables our partner to provide a custom-branded, high-quality experience to the partner’s customers, powered by our technology and team members.
−Removed: We do not pay customer acquisition costs through this type of relationship.
−Removed: Historically, we had one integrated relationship with Ally Bank, a Utah state-chartered bank (“Ally”), pursuant to which we offered our end-to-end platform and services alongside Ally’s brand, and manufactured loans on Ally’s behalf.
−Removed: Initially launched in 2019, our integrated relationship with Ally Bank is in process of winding down due to a shift in strategic direction and corporate resourcing at Ally.
−Removed: We believe the infrastructure and technology built for Ally can be leveraged across a pipeline of potential integrated relationships going forward.
−Removed: • Advertising Relationships :
−Removed: Historically, we have structured arrangements with advertising partners, including American Express, as well as other advertising relationships, for us to advertise our homeownership products to their customers.
−Removed: Customers that come to us via these advertising relationships enter through the same customer workflow as our D2C customers, generating revenues for us in the same manner as our D2C customers.
−Removed: Initially launched in 2019, our advertising relationship with American Express was wound down in 2024.
−Removed: In February 2024, we launched an additional advertising relationship with Beyond.com.
−Removed: Currently, no advertising relationship is responsible for material Funded Loan Volume.
−Removed: • ‘NEO Powered by Better’ :
−Removed: In the third quarter of 2024, we hired the executive team from NEO Home Loans, a group of Loan Officer teams with strong brand recognition within the U.S.
−Removed: mortgage market, to build out a distributed retail channel within Better.
−Removed: By bringing NEO Home Loans into the Better platform, we seek to diversify Better’s distribution strategy, and leverage Tinman to power local loan officers under the ‘NEO Powered by Better’ brand.
−Removed: As of March 17, 2025, we had onboarded approximately 110 NEO loan officers across 53
−Removed: We believe there is significant opportunity to prove out Tinman’s efficiency in the distributed retail channel by providing our technology to local loan officers to remove friction from their fulfillment process and expand their capacity to serve more customers, while improving economics through a business model with traditionally lower customer acquisition costs compared to D2C.
−Removed: We expect to leverage Better’s AI technology and digital lead funnel to empower NEO’s Loan Officer teams, who have demonstrated track records in customer service excellence and strong reputations within the communities they serve.
+Added: We recorded a net loss of $165.9 million for the year ended December 31, 2025, compared to a net loss of $206.3 million for the year ended December 31, 2024, representing a 20% year-over-year decrease.
+Added: Our Products and Services
+Added: We offer a range of products and services designed to support the homeownership lifecycle.
+Added: These include consumer-facing mortgage and related homeownership products, as well as technology-enabled offerings provided to third-party strategic partners.
+Added: Our offerings are supported by our proprietary technology platform, Tinman, which enables digital delivery, automation, and integration across these activities.
+Added: Home Finance 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.
+Added: Our offerings include GSE-conforming loans, Federal Housing Administration (“FHA”) insured loans, Department of Veterans Affairs (“VA”) guaranteed loans, and jumbo loans.
+Added: We sell the mortgage loans we originate into a network of loan purchasers, including GSEs, banks, insurance companies, asset managers, and mortgage real estate investment trusts, and we earn revenue upon the sale of each loan.
+Added: The majority of the loans we originate conform to the underwriting standards of Fannie Mae and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).
+Added: Tab l e of Contents
+Added: As of December 31, 2025, we were licensed to originate mortgage loans in all 50 states and the District of Columbia across a range of credit and income profiles.
+Added: In addition to first-lien mortgage products, we offer home equity lines of credit and closed-end second-lien loans to enable customers to access equity in their homes.
+Added: Tinman AI Platform
+Added: The Tinman AI Platform (“Tinman”) includes access to our proprietary technology in connection with mortgage origination activities, including technology-enabled underwriting, loan processing, compliance support, capital markets connectivity, and related back-office functionality.
+Added: In certain arrangements, 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.
+Added: In other arrangements, Tinman is integrated into a strategic partner’s customer-facing application or workflow, and we originate mortgage loans directly using our Home Finance products for the partner’s customers.
+Added: The scope, pricing structure and responsibilities under these arrangements vary by partner.
+Added: We complement our residential mortgage loan products through Better Plus, which includes a set of non-mortgage homeownership products and services offered primarily through third-party strategic partners.
+Added: 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.
+Added: In these arrangements, we generally act as an agent or referral source and receive fees from third-party providers.
+Added: Better Plus products are integrated into our platform to support customers throughout the homeownership process.
+Added: International Lending & Services
+Added: Through our U.K.
+Added: subsidiary, Birmingham Bank, and related U.K.
+Added: homeownership businesses, we offer residential mortgage and related financial products to customers in the United Kingdom.
+Added: operations utilize a technology-first approach to address a market we believe is similarly encumbered by legacy inefficiencies.
+Added: We are in the process of exiting our non-core international operations.
+Added: Our Technology
+Added: Our products and services are supported by Tinman and our voice-based AI assistant, Betsy.
+Added: Tinman is a digital loan origination and workflow platform that uses AI and automation to integrate customer-facing applications, internal operational tools, and third-party systems to support mortgage origination and related homeownership services.
+Added: Betsy assists customers with mortgage application inquiries and the collection of required application information and is designed to interact directly with customers as part of the loan origination process and to support more efficient completion of application workflows.
+Added: Tinman serves as the system of record for our Home Finance, Platform Services, and Better Plus offerings.
+Added: The platform aggregates customer and property data from direct user input and third-party sources through application programming interfaces (“APIs”), applies automated decisioning and rules-based logic, and orchestrates workflows across underwriting, processing, and closing activities.
+Added: Tinman also supports pricing, document generation, task assignment, and connectivity with loan purchasers.
+Added: Tinman’s automated decisioning and workflow engine supports internal operations by collecting and processing data, coordinating tasks between customers and team members, and guiding mortgage transactions from application through closing, including through the use of third-party software where applicable.
+Added: The platform also supports the matching of originated loans with loan purchasers based on applicable criteria.
+Added: Through this approach, Tinman standardizes and automates portions of the loan production process, while maintaining appropriate human review.
+Added: Customers interact with Tinman primarily through digital interfaces to submit information, complete required tasks, review loan options, and access related homeownership products.
+Added: In parallel, Tinman coordinates operational workflows by completing certain tasks through automation and routing other tasks to team members for review or completion.
+Added: While we expect to continue to invest in automation and AI-enabled capabilities, portions of our loan production process require human involvement.
+Added: Tab l e of Contents
+Added: Distribution Channels
+Added: We reach our customers through two primary channels:
+Added: (1) direct-to-consumer (D2C);
+Added: and our (2) platform channel.
+Added: Under our D2C distribution channel, customers engage directly with Better through our website and complete the mortgage process under the Better Home & Finance brand.
+Added: Customer relationships in this channel are initiated through performance-based digital marketing and other online media, with prospective borrowers directed to our platform to explore mortgage options and begin the application process.
+Added: Under our platform distribution channel, we engage with borrowers through third-party partners as well as through our in-market originations business.
+Added: In both cases, Tinman is used as the underlying technology platform to support mortgage origination activities.
+Added: Our previous Retail channel has been consolidated under the Platform channel.
+Added: In partner arrangements, third parties use Tinman to support their existing mortgage operations or to establish new mortgage origination capabilities.
+Added: Depending on the structure of the arrangement, we may provide out Tinman technology, underwriting, processing, and related operational services, or we may originate mortgage loans directly using our Home Finance products for our strategic partners’ customers.
+Added: Tinman also supports our in-market originations business (previously referred to as our retail business), where mortgage demand is sourced primarily through referral- and relationship-based channels rather than direct-to-consumer marketing.
+Added: Across both partner and in-market originations, our platform provides automated workflow, underwriting, and loan manufacturing capabilities that support mortgage origination at scale.
Our Competitive Strengths
We believe we have a number of competitive advantages that contribute to our success.
−Removed: We aim to provide our customers with a superior customer experience and a wide selection of products to navigate their homeownership journey.
−Removed: We believe that lowering loan manufacturing costs, integrating additional homeownership products onto our platform, and scaling our ecosystem will, if we are successful, enable us to deliver increased value to our customers and contribute to our mission.
+Added: We aim to provide our customers with superior experience and a wide selection of products to navigate their homeownership journey.
+Added: We believe that lowering loan manufacturing costs and scaling our ecosystem will enable us to deliver increased value to our customers and contribute to our mission.
• Superior Customer Experience.
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Tinman enables our customers to interact with us on their schedule, allowing us to meet our customers where they are, be it digitally on our platform, or by phone, text, or email, 24/7.
−Removed: Eligible customers can see their rate options in as little as three seconds, get pre-approved in as little as three minutes, lock in rates and get connected to a real estate agent in as little as 30 minutes, get a commitment letter for their mortgage in as little as one day through One Day mortgage and close their loan in as little as three weeks.
−Removed: Our goal is to surface to our customers the most updated interest rates, and our tools provide them with flexibility to evaluate Home Finance and Better Plus products in real time as they move through our customer workflow.
+Added: Our goal is to surface the most updated interest rates to our customers , and our tools provide them with flexibility to evaluate Home Finance and Better Plus products in real time as they move through our customer workflow.
• Highly Scalable Platform in Breadth and Depth.
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In addition to our platform being able to scale mortgage volume quickly, we believe our technology enables us to achieve broad scale across multiple homeownership products as well.
−Removed: We believe the breadth and flexibility of Tinman across products and customer journey pathways sets us up to scale purchase loans by providing a superior end-to-end integrated homeownership experience to customers.
Our platform is modular in nature and new products and partners can be added seamlessly using the same core code and systems architecture.
−Removed: For example, we have added additional Better Plus products such as our Home Equity Line of Credit, a revolving line of credit secured by an interest in the borrower's home, which uses the same loan production technology infrastructure as our mortgage product, with the tasks set up to meet home equity line of credit origination requirements.
−Removed: Additionally, our co-branded loan production solutions with our B2B partners utilize the same technology for mortgage origination as our direct-to-consumer loan production, but are customized to add, remove, or rearrange tasks and disclosures within the loan process at the request of our partners, as well as have partners’ branding on the customer facing aspects of the interface to meet their specific requirements.
−Removed: Our technology infrastructure allows us to address our partners’ requirements by combining existing solutions and customizing functionality.
−Removed: • Target Reduced Labor Cost.
+Added: • Labor Cost.
We are working to re-engineer traditionally complex, manual and highly specialized loan workflows into simple tasks that can be partially completed through automation or with unspecialized lower-cost labor.
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Tinman aims to make our loan manufacturing team members more productive than the competition at a lower cost.
−Removed: We believe we can complete many of our transactions at a lower production labor cost per unit, seeking to pass savings on to our customers and offer them lower rates and prices across our suite of products.
+Added: We believe we can complete many of our transactions at a lower production labor cost per unit, seeking to pass savings on to our customers.
• Data Advantage.
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On the customer side, we capture up to 10,000 data points per customer during the loan transaction process.
−Removed: For example, in the underwriting process our platform collects flood certification data, which then can be leveraged for our customers’ flood insurance coverage by Better Cover.
−Removed: We are able to save our customers time and money by removing friction from manual re-entry of personal details and details on their home captured through the loan origination and appraisal process, reducing fatigue from dealing with numerous providers, offering them the best combination of tailored products through our expanding
−Removed: homeownership platform.
−Removed: We are able to surface highly relevant and suitable products for each customer based on their personalized financial and property circumstances.
+Added: This enables us to save customers time and money by removing friction from manual re-entry of personal details and details on their home captured through the loan origination and appraisal process, reducing fatigue from dealing with numerous providers, offering them a combination of tailored products through our expanding homeownership platform.
• Limited Credit Exposure.
Our business model is to manufacture loans to sell to our marketplace of secondary investors and partners, and we do not seek to retain assets for long periods of time.
−Removed: With every loan we produce, we aim to sell the loan and associated mortgage servicing rights (“MSRs”) into our network of purchasers, and not permanently retain loans or MSRs on our balance sheet as part of our business model.
−Removed: We retained loans on our balance sheet for approximately 22 days, on average, over the course of 2024.
+Added: With every loan we produce, we aim to sell the loan and associated MSRs into our network of purchasers and not permanently retain loans or
+Added: Tab l e of Contents
+Added: MSRs on our balance sheet as part of our business model.
As of December 31, 2025, we had no material MSRs on our balance sheet.
−Removed: In 2024 and 2023 approximately 96% and 94%, respectively, of all the loans we produced, excluding HELOC loans, were conforming with GSE-guaranteed takeout, providing access to liquidity for our loans through market cycles.
−Removed: For jumbo loans, which are not GSE eligible, we enter into sale agreements with purchasers prior to lock, thereby enabling us to take minimal balance sheet exposure for non-conforming loans, limiting our credit risk and supporting our model.
−Removed: • Integrated Platform.
−Removed: Our integrated offerings across Home Finance, Better Real Estate, Better Settlement Services and Better Cover enable us to leverage our platform and data to seamlessly offer superior and customized products to customers at all stages of their home ownership process.
−Removed: Certain of our offerings, are the result of an ecosystem that utilizes information throughout a customer’s data profile to maximize their options in the home purchase process while minimizing their burden of repetitive data entry.
+Added: Substantially all of the loans we produced, excluding home equity lines of credit, were conforming with GSE-guaranteed takeout, providing access to liquidity for our loans across market cycles.
+Added: For jumbo loans, which are not GSE eligible, we enter into sale agreements with purchasers prior to lock, thereby limiting balance sheet exposure and credit risk for non-conforming loans.
Our Growth Strategies
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We believe we can grow by enhancing our customer experience, expanding our customer base and providing additional products and services.
−Removed: • Diversified Purchase Distribution.
−Removed: Having proven strong traction and ability to grow our refinance business through a lower-rate environment, we remain focused on growing purchase and demonstrating our purchase customer value proposition through our integrated homeownership platform.
−Removed: We have learned that meeting purchase customers where they are most comfortable transacting requires expansion of our distribution strategy beyond digital performance marketing.
−Removed: We believe that online adoption of mortgage is expected to increase, and for customers comfortable transacting online, we meet them through our digital, self-serve platform.
−Removed: Many customers, however, still feel more comfortable transacting with a local lender, who has expertise and relationships in their community.
−Removed: In the third quarter of 2024 we hired the executive team from NEO Home Loans to build out a distributed local retail channel, diversifying Better’s offering particularly in purchase, and leveraging Tinman to power local loan officers through ‘NEO Powered by Better’.
−Removed: As of March 15, 2025, we had onboarded 110 NEO loan officers.
−Removed: While this distribution diversification strategy remains early, we seek to prove out Tinman’s efficiency in the distributed retail channel by removing friction from the local officer’s fulfillment process and expand their capacity to serve more customers.
−Removed: We believe that compared to digital direct-to-consumer, this distribution channel lends itself to lower acquisition costs, improved pricing given the differentiated, white-glove service, and conversion benefits given the deep relationships local lenders establish with their customers and real estate agents in their communities.
−Removed: We expect to leverage Better’s AI technology and digital lead funnel to empower NEO’s Loan Officer teams, who have demonstrated track records in customer service excellence and strong reputations within the communities they serve.
−Removed: Through ‘NEO Powered by Better’ we see a unique opportunity to expand our distribution capabilities and unlock significant parts of the U.S.
−Removed: mortgage market that have historically been challenging for direct-to-consumer digital originators without established local footprints to serve, specifically in the purchase mortgage segment where there were approximately 334,000 loan officers across the U.S.
−Removed: in 2023, according to the U.S.
−Removed: Bureau of Labor Statistics.
+Added: • Diversified Distribution Strategy.
+Added: We seek to expand our mortgage origination capabilities by diversifying our distribution channels beyond direct-to-consumer digital marketing.
+Added: While we continue to serve customers who prefer a fully digital, self-directed experience, we are also focused on reaching customers through partner relationships and locally oriented origination channels that emphasize referral- and relationship-based engagement.
+Added: We believe that different customer segments prefer different modes of interaction, particularly in purchase transactions, and that a multi-channel distribution approach enables us to meet customers where they are most comfortable transacting.
+Added: We leverage Tinman to support these additional distribution channels by providing a centralized technology and fulfillment platform that enables consistent underwriting, processing, and operational execution across distribution models.
+Added: This approach is intended to broaden our reach, support purchase market growth, and enable scalable origination across a wider range of customer acquisition pathways.
• Conversion.
−Removed: We believe that we can unlock additional growth by improving the rate at which we convert the visitors to our website into customers with funded loans by improving operational efficiency, enhancing our customer experience, increasing our product offerings and providing lower rates to our customers.
−Removed: We see a sizable opportunity to bring our conversion rate up to industry averages by improving customer support and purpose-built technology to nurture them at early stages of the homeownership journey.
−Removed: In addition, by further automating steps of the loan manufacturing process, we believe we can improve the customer experience and decrease the time they spend in the process, which may improve conversion.
+Added: We seek to drive growth by improving the conversion of prospective customers into funded loans through continued enhancements to operational efficiency, customer experience, and product offerings.
+Added: We are focused on supporting customers earlier in the homeownership journey through improved customer engagement and technology-enabled workflows.
+Added: In addition, by further automating elements of the loan manufacturing process, we aim to reduce friction and processing time, which may support improved customer outcomes and conversion rates.
• Enhance Technology Innovation.
Our technology strategy is to fully automate the manual aspects of the homeownership process, allowing our team to focus on what people do best, building customer relationships.
−Removed: We will continue to invest to remove points of customer friction, making our platform more efficient and scalable as we continue to grow and add new products, further driving down our labor costs through automation.
−Removed: our investments in technology will lead to superior customer experience, lower manufacturing costs and increased conversion rates across all our products.
+Added: We will continue to invest to remove points of customer friction, making our technology more efficient and scalable as we continue to grow and add new products, further driving down our labor costs through automation.
• Customer Acquisition.
−Removed: We believe we have ample room to reach more customers through data-driven marketing.
+Added: We believe we have ample room to reach additional customers through data-driven marketing.
We see growth opportunities to reach customers by further penetrating both existing and new performance marketing (pay-per-click) and digital media channels.
Additionally, growth in organic traffic and maintaining and contacting our existing network of customers who may be eligible to transact are significant opportunities.
−Removed: We aim to continue organic traffic growth through content marketing and high customer satisfaction, although in light of market conditions, we have reduced spending on customer acquisition.
−Removed: • Expand Better Plus Products.
−Removed: We expect to grow the suite of products and services we offer through our platform and deliver a one-stop shop for homeownership, empowering consumers to navigate the entire homeownership journey from searching to owning, living and selling, all in one place.
−Removed: We believe over the long term there is a range of products that we will be able to offer our customers during their homeownership journey, including home maintenance services and improvement loans, and a financial network of personal, automobile, and student loans, and life and disability insurance, leveraging the equity customers have in their homes to offer cost-effective consumer finance products at a fraction of the speed given the existing data we capture on the customer financial graph and property graph.
−Removed: By continuously analyzing customer and property data captured during the loan process, we can seamlessly identify and offer products customized to our customers’ needs, for those customers who choose to purchase with us.
−Removed: Through expanding Better Plus products we seek to improve our economics through higher transaction value per customer without incremental customer acquisition spend.
−Removed: In addition, we are investing in Better Plus in order to diversify our revenue streams into relatively less rate-sensitive products as compared to refinance loans.
−Removed: • Additional B2B Partners.
−Removed: We believe there is opportunity to add new B2B partners.
−Removed: We seek to pursue relationships with potential partners that are aligned with our consumer-minded ethos and want to provide seamless, digital homeownership products to their customers.
−Removed: Our partners trust us to do right by their customers, and we leverage the same scalable end-to-end technology powering our D2C business to offer our partners’ customers a better, faster, cheaper homeownership experience.
−Removed: We believe that growing our B2B business improves our long-term position by adding volume, improving customer awareness, and embedding our technology within the leading household consumer finance brands.
• Broadening U.S.
Geographic and Product Coverage.
−Removed: As of December 31, 2024, we are licensed to offer Home Finance loan products in all 50 states and the District of Columbia.
−Removed: Better Real Estate is able to refer brokers in all 50 states and the District of Columbia through its agent network.
−Removed: Better Settlement Services, which offers title services, is licensed in 27 states and the District of Columbia.
−Removed: Better Cover is licensed in 50 states and the District of Columbia.
−Removed: However, we do not necessarily offer all products and services in all states in which we are licensed.
−Removed: Accordingly, we aim to increase our addressable market by providing all of our products across the United States.
−Removed: Additionally, we continue to invest in infrastructure to diversify and scale our loan product portfolio (FHA, VA, Non-Agency Jumbo and Non-QM) to meet demand.
−Removed: Due to state licensing and other regulations, the number of Better Plus products available to customers in some states is limited, providing us with substantial growth potential as we increase product availability.
−Removed: We plan to expand access to our Better Plus portfolio of products across the U.S.
−Removed: as we see market demand.
−Removed: This broad array of products and services, combined with expanded market access, is intended to create a one-stop shop for all of our customers’ homeownership needs.
−Removed: • International Expansion.
−Removed: We believe international expansion represents a large addressable opportunity, as reflected in our expansion in the U.K.
−Removed: Similar to the U.S., the U.K.
−Removed: homeownership and lending experiences are broken and mired with legacy inefficiencies.
−Removed: We completed multiple acquisitions between 2021 and 2023 in the U.K.
−Removed: homeownership and banking sector, which we believe help us work towards leveraging our technology to create a more integrated consumer experience.
+Added: We seek to expand our addressable market by increasing the availability of our products and services across the United States, subject to applicable licensing and regulatory requirements.
+Added: While we are licensed in many jurisdictions, we do not currently offer all products in all locations.
+Added: We plan to continue investing in infrastructure and compliance capabilities to broaden geographic coverage and expand our loan product offerings, including government-insured and non-agency products, as well as selected non-mortgage homeownership services, based on market demand.
Risk Management & Compliance
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We prioritize strategic thinking about how best to protect the interests of the consumer, particularly since we are building a digitally native system in an industry that has traditionally been analog.
+Added: Tab l e of Contents
We believe our integrated platform contributes to our ability to mitigate exposure to risk.
−Removed: Since Tinman tracks thousands of data points across each loan file, we are able to ensure that each transaction is auditable and that our loan production process is compliant with applicable state-specific and federal regulations across customer contact, pricing, underwriting and quality control.
+Added: Since Tinman tracks thousands of data points across each loan file, we are able to maintain a robust audit trail and support compliance with applicable state-specific and federal regulations across customer contact, pricing, underwriting and quality control.
Throughout the loan process, we use third-party data that is pulled directly into our system via API to verify income, assets and other client information.
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Our compliance program is kept current by our internal compliance team, whose members track regulatory updates, conduct thorough reviews of policies and procedures, investigate consumer complaints and other compliance incidents, and monitor the licensing and education requirements of our team members.
−Removed: The company employs dedicated associates within the compliance team that manage regulatory reporting and examinations to ensure timely submissions and responses.
+Added: The company employs dedicated associates within the compliance team that manage regulatory reporting and examination, helping us meet submission deadlines and respond to regulators in a timely manner.
Additionally, the compliance team proactively audits and monitors various aspects of our origination process and initiates any necessary coaching and remediation measures.
−Removed: This team also takes an active role in the onboarding and ongoing monitoring of B2B partners, third-party providers in our Better Plus marketplace, and new loan purchasers on our platform by assessing risk and reviewing applicable documentation.
+Added: This team also takes an active role in the onboarding and ongoing monitoring of strategic partners, third-party providers in our Better Plus marketplace, and new loan purchasers on our platform by assessing risk and reviewing applicable documentation.
Through our internal compliance team, we proactively monitor the reporting and revision of these processes and procedures to mitigate risk.
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Our capital markets team helps mitigate interest rate risk in our loan production business by executing appropriate hedging trades between the time of interest rate lock and loan commitment to an investor.
−Removed: We institute different strategies depending on market conditions to provide our customers with attractive rates and ensure the stability of our loan production pipeline and our liquidity.
+Added: We institute different strategies depending on market conditions to provide our customers with attractive rates and promote the stability of our loan production pipeline and our liquidity.
Our sources of liquidity include loan funding warehouse facilities, the loans we produce in conformity with GSE-guaranteed takeout, as well as cash on hand.
As of December 31, 2025, we had three warehouse lines of credit in different amounts and with various maturities, with an aggregate available amount of $575.0 million.
−Removed: We operate under hedging policies designed to mitigate the effects of any fluctuations in interest rates, and analyze our “pull-through” rates along the loan life cycle, to ensure that we are adjusting our hedging activity across market conditions.
+Added: We operate under hedging policies designed to mitigate the effects of any fluctuations in interest rates, and analyze our pull-through rates along the loan lifecycle and calibrate our hedging activity as market conditions change.
Our Competitors
−Removed: There are approximately 5,000 incumbent banks and 100,000 real estate brokerage firms in the U.S.
−Removed: whose traditional competitive advantages are rapidly eroding from technology-focused competitors.
−Removed: We compete with a wide range of providers, each of whom provides components of our offering, but we believe that none of our competitors provide as complete of an end-to-end platform as we are developing, which aims to simplify and rearchitect the customer experience across the entire homeownership ecosystem.
−Removed: Each residential real estate transaction has numerous parties involved, including but not limited to, lead aggregators, real estate agents, loan originators, title insurers and homeowners insurers.
−Removed: All of these parties compete with each other either directly or indirectly as they are looking to win a larger share of the revenue pool in each transaction.
−Removed: As a result, our competition is highly disjointed across products (i.e., different products are offered at different points in the transaction) and highly fragmented within certain products.
−Removed: Within loan production, the market is highly fragmented, with the largest player holding less than a 10% share.
−Removed: Our primary competitors are legacy players including traditional banks and depository institutions, non-bank loan originators, and smaller local players who form the long tail of the market.
−Removed: Digitally native home buying technology platforms are increasingly moving into the loan production space, but as of yet, they have not developed an independent loan production offering at scale.
−Removed: Such other online mortgage originators and digitally native entrants primarily compete on price and on the speed of the loan application, underwriting and approval process, and any increase in these competitive pressures could be detrimental to our business, including as a result of higher performance marketing spend due to greater demand for customer leads.
−Removed: In addition, some more traditional banks that provide our warehouse lines of credit are also active in the home mortgage market as traditional banks and depository institutions, which could create conflicts when renewing our warehouse lines.
−Removed: Some of our competitors may have more name recognition and greater financial and other resources than we have (including access to capital).
−Removed: Other of our competitors, such as lenders who originate mortgage loans using their own funds, or direct retail lenders who market directly to homeowners, may have more operational and regulatory flexibility in
−Removed: approving loans.
−Removed: Licensing requirements have made it difficult for independent mortgage loan originators to take the place of the banks that have left the mortgage sector, and the uneven nature of state regulation and considerable number of licenses required create a high barrier to entry.
−Removed: Banks that provide other financial services to homeowners may have advantages in soliciting home loans to their clients, have access to capital through deposits at lower costs than our warehouse facilities and benefit from relatively uniform U.S.
−Removed: federal rules and standards that preempt certain state laws to which we are subject.
+Added: We face competition across multiple aspects of the homeownership and mortgage origination process, including mortgage lending, real estate services, insurance offerings, and technology-enabled mortgage operations.
+Added: In our Home Finance business, we compete primarily with traditional banks and depository institutions, non-bank mortgage lenders, credit unions, and smaller regional and local lenders.
+Added: Some of these competitors have greater brand recognition, access to lower-cost funding sources, or broader customer relationships through other financial products.
+Added: In our Tinman AI Platform business, we compete with mortgage technology providers and loan origination system (“LOS”) platforms that offer software and workflow tools to lenders and mortgage operators, as well as with service providers that offer outsourced underwriting, processing, or fulfillment capabilities.
+Added: These competitors may include established mortgage technology platforms with large installed customer bases.
+Added: Across our businesses, competition is influenced by factors such as pricing, product breadth, service levels, customer experience, speed of execution, regulatory compliance capabilities, and the ability to integrate technology with operational execution.
+Added: The regulatory environment for mortgage origination, including licensing and compliance requirements, creates barriers to entry for new participants but also imposes ongoing costs and constraints on our operations.
Our Intellectual Property
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We also license certain third-party technology for use in conjunction with our products.
+Added: Tab l e of Contents
We believe that our success depends on hiring and retaining highly capable and innovative team members, especially as it relates to our engineering base.
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Unauthorized use of our intellectual property by third parties, and the expenses incurred in protecting our intellectual property rights, may materially and adversely affect our business.
−Removed: Government Regulations Affecting Mortgage Loan Production, Servicing and Ancillary Services
+Added: Government Regulations
We operate in a heavily regulated industry that is highly focused on consumer protection.
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federal and state agencies have broad oversight and supervisory authority over all of our business lines.
−Removed: In addition, as a result of our international expansion in the United Kingdom, we are subject to increased regulation over parts of our business including by the Prudential Regulatory Authority of the Bank of England and the Financial Conduct Authority.
+Added: In addition, as a result of our operations in the United Kingdom, we are subject to additional regulation over parts of our business including by the Prudential Regulatory Authority of the Bank of England and the Financial Conduct Authority.
We incur significant ongoing costs to comply with the licensing and other legal requirements under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the” SAFE Act”) and the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), among other federal statutes.
−Removed: The Dodd-Frank Act established the Consumer Financial Protection Bureau (“CFPB”).
−Removed: According to the CFPB, it implements and enforces federal consumer financial law and ensures that markets for consumer financial products are transparent, fair, and competitive.
−Removed: Historically, the CFPB has been active in investigations and enforcement actions and has issued large civil money penalties since its inception to parties the CFPB determines have violated the laws and regulations it enforces.
−Removed: Under the Biden Administration, the CFPB expanded the number and focus of examinations.
−Removed: It also created a registry for nonbank law violators.
−Removed: Given recent statements by the Trump administration, the CFPB faces an uncertain future.
−Removed: In all events, its priorities are likely to change.
−Removed: Nevertheless, we are mindful that our conduct during the Trump administration could become the subject of scrutiny during future administrations that might lead the CFPB to renew the priorities it had during the Biden administration.
+Added: The Consumer Financial Protection Bureau (“CFPB”), established under the Dodd-Frank Act, directly and significantly influences the regulation of residential mortgage loan originations.
+Added: The CFPB has rulemaking authority with respect to many of the federal consumer protection laws applicable to mortgage originators and servicers, including the Truth in Lending Act (“TILA”), Real Estate Settlement Procedures Act (“RESPA”), Fair Credit Reporting Act (“FCRA”), and Fair Debt Collection Practices Act (“FDCPA”).
We are also supervised by regulatory agencies under U.S.
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State attorneys general, state mortgage and real estate licensing regulators, state insurance departments, and state and local consumer protection offices have authority to investigate consumer complaints and to commence investigations and other formal and informal proceedings regarding our operations and activities.
−Removed: We are mindful that these state regulators may become more active should the CFPB’s priorities change.
We also are subject to a variety of regulatory and contractual obligations imposed by credit owners, insurers and guarantors of the loans we produce or facilitate and/or service.
−Removed: This includes, but is not limited to, Fannie Mae, Freddie Mac,
−Removed: Federal Housing Finance Agency (“FHFA”) , the U.S.
−Removed: Department of Housing and Urban Development (“HUD”), FHA and the Department of Veterans Affairs (“VA”).
+Added: This includes, but is not limited to, Fannie Mae, Freddie Mac, the Federal Housing Finance Agency (“FHFA”) , the U.S.
+Added: Department of Housing and Urban Development (“HUD”), the FHA and the VA.
Regulatory standards set by these entities may change in ways that impact our business.
In addition, we are subject to periodic reviews and audits by the GSEs, the FHA, the Federal Trade Commission (“FTC”), non-agency securitization trustees and others.
−Removed: This broad and extensive supervisory and
−Removed: enforcement oversight will continue to occur in the future.
+Added: This broad and extensive supervisory and enforcement oversight will continue to occur in the future.
We also may be subject to judicial and administrative decisions that impose requirements and restrictions on our business.
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In turn, this could make our compliance responsibilities more complex.
−Removed: The Company maintains dedicated staff on the compliance team that responds to regulatory examination requests and investigates consumer complaints in accordance with regulatory regulations and expectations.
−Removed: Our business also may be indirectly impacted by changes in the law, regulations and decisions by regulators.
−Removed: For example, our business may be impacted by the FHFA authorizing new products such as products that would allow GSEs to purchase closed-end second mortgages.
−Removed: Federal Lending and Servicing Laws and Regulations
−Removed: Numerous U.S.
−Removed: federal regulatory consumer protection laws impact our business, including but not limited to the Real Estate Settlement Procedures Act (“RESPA”) and Regulation X, the Truth in Lending Act (“TILA”), the the Home Ownership and Equity Protection Act of 1994 (“HOEPA”), Regulation Z, the TILA-RESPA Integrated Disclosure (“TRID”) rules, the Fair Credit Reporting Act (the “FCRA”) and Regulation V, the Equal Credit Opportunity Act and Regulation B, the Homeowners Protection Act, the Home Mortgage Disclosure Act (“HMDA”) and Regulation C, the Fair Housing Act, the Fair Debt Collection Practices Act, the Gramm-Leach-Bliley Act (the “GLBA”) and Regulation P, the Bank Secrecy Act (“BSA”) and related regulations, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, the SAFE Act, the Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the Uniform Electronic Transactions Act, the Electronic Fund Transfer Act of 1978 and Regulation E, the Servicemembers Civil Relief Act, the Federal Trade Commission Act, the FTC Credit Practices Rules and the FTC Telemarketing Sales Rule, the Telephone Consumer Protection Act (“TCPA”), the Mortgage Acts and Practices Advertising Rule, Regulation N, the Controlling the Assault of Non-Solicited Pornography and Marketing Act (the “CAN-SPAM Act”), the Consumer Financial Protection Act, the final rule promulgated by the CFPB, FHFA and other regulators concerning automated property valuation models, the Bankruptcy Code and bankruptcy injunctions and stays, and the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
−Removed: State Lending Laws and Regulations
+Added: Federal Laws and Regulations
+Added: We are subject to a several U.S.
+Added: federal regulatory consumer protection laws including, but not limited to, RESPA and Regulation X, TILA, the Home Ownership and Equity Protection Act of 1994 (“HOEPA”), Regulation Z, the TILA-RESPA Integrated Disclosure (“TRID”) rules, the FCRA and Regulation V, the Equal Credit Opportunity Act and Regulation B, the Homeowners Protection Act, the Home Mortgage Disclosure Act (“HMDA”) and Regulation C, the Fair Housing Act, the FDCPA, the Gramm-Leach-Bliley Act (the “GLBA”) and Regulation P, the Bank Secrecy Act (“BSA”) and related regulations, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, the SAFE Act, the Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the Uniform Electronic Transactions Act, the Electronic Fund Transfer Act of 1978 and Regulation E, the Servicemembers Civil Relief Act, the Federal Trade Commission Act, the FTC Credit Practices Rules and the FTC Telemarketing Sales Rule, the Telephone Consumer Protection Act (“TCPA”), the Mortgage Acts and Practices Advertising Rule, Regulation N, the Controlling the Assault of Non-Solicited Pornography and Marketing Act (the “CAN-SPAM Act”), the Consumer Financial Protection Act.
+Added: Tab l e of Contents
+Added: State Laws and Regulations
Because we are not a depository institution, we must comply with state licensing requirements to conduct our business.
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Our real estate brokerage, title agency, and homeowners insurance agency also maintain licenses to operate in certain of these states.
−Removed: Generally speaking, the licensing process includes the submission and approval of an application to the applicable state agency, a character and fitness review of key individuals, and an administrative review of our business operations.
+Added: Generally, the licensing process includes the submission and approval of an application to the applicable state agency, a character and fitness review of key individuals, and an administrative review of our business operations.
Such requirements occur at the initial stage of license acquisition and throughout the period of licensure.
Under the SAFE Act, all states have laws that require mortgage loan originators employed by non-depository institutions to be individually licensed to offer mortgage loan products.
−Removed: In addition to applicable federal laws and regulations governing our operations, our ability to produce and service loans in any particular state is subject to that state’s laws, regulations and licensing requirements, which may differ from the laws, regulations and licensing requirements of other states.
+Added: In addition to applicable federal laws and regulations governing our operations, our ability to produce and service loans in any particular state is subject to that state’s laws, regulations and licensing requirements.
State laws often include fee limitations and disclosure and other requirements.
−Removed: Many states have adopted regulations that prohibit various forms of “predatory” lending and place obligations on lenders to substantiate that a customer will derive a tangible benefit from the proposed home financing transaction and/or have the ability to repay the loan.
−Removed: These laws have required most lenders to devote considerable resources to building and maintaining automated systems to perform loan-by-loan analysis of points, fees and other factors set forth in the laws, which often vary depending on the location of the mortgaged property.
−Removed: Many of these laws are vague and subject to differing interpretations, which exposes us to risk.
−Removed: The number and complexity of these laws, and vagaries in how they should be interpreted, present compliance and litigation risks from inadvertent errors and omissions which we may not be able to eliminate from our operation or activities.
−Removed: The laws, regulations and rules described above are subject to legislative, administrative and judicial interpretation, and some of these laws and regulations have been infrequently interpreted or only recently enacted.
−Removed: Infrequent or differing interpretations of these laws and regulations or an insignificant number of interpretations of recently
−Removed: enacted laws and regulations can result in ambiguity with respect to permitted conduct under these laws and regulations.
−Removed: Any ambiguity under the laws and regulations to which we are subject may lead to regulatory investigations or enforcement actions and private causes of action, such as class-action lawsuits, with respect to our compliance with applicable laws and regulations.
−Removed: We note that nationally chartered banks are not subject to certain state law requirements, which results in an increased compliance burden for us, relative to such competitors.
−Removed: Additionally, our business is subject to numerous types of state laws that are continuously changing, including laws related to mobile-and internet-based businesses, data privacy, disclosures and advertising laws.
+Added: These laws have required us to devote considerable resources to building and maintaining automated systems to perform loan-by-loan analysis of points, fees and other factors set forth in the laws, which often vary depending on the location of the mortgaged property.
+Added: Our business is also subject to state laws, related to mobile-and internet-based businesses, data privacy, disclosures and advertising laws.
Together, these state laws impact our communication and data processing practices and policies, which, in turn, results in substantial compliance-related costs and expenses.
−Removed: Certain of these state laws also provide for civil penalties for violations, as well as a private right of action, including with respect to data breaches, which come with ever-increasing risks, including the risk of private litigation.
−Removed: The service providers we use, including outside counsel retained to process foreclosures and bankruptcies, also must comply with some of these legal requirements.
−Removed: Changes to laws, regulations or regulatory policies or their interpretation or implementation and the continued heightening of regulatory requirements could affect us in substantial and unpredictable ways.
Our Better Plus businesses, such as our real estate brokerage, title agency, and homeowners insurance agency, are also subject to state laws that may require licensure and prohibit, limit, or require approval to engage in certain conduct.
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In some instances, these requirements are more expansive than RESPA, rendering useless exemptions an entity would rely on for purposes of RESPA compliance.
−Removed: We are subject to various other laws, including employment laws related to hiring practices, overtime, and termination of team members, health and safety laws, environmental laws and other federal, state and local laws in the jurisdictions in which we operate.
−Removed: Our business also may be impacted directly or indirectly by Executive Orders issued during the Trump Administration.
Our Team Members and Human Capital Management
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mortgage production roles, of which approximately 591 were located in the United States and approximately 254 in India.
+Added: Our intention remains to scale our India based team to avail ourselves of the large mortgage talent pool and favorable labor cost arbitrage.
+Added: Further, we are exploring additional third-party business process outsourcing relationships to provide additional capacity, some variable, as well as enhanced disaster recovery capability.
Additionally, approximately 151 team members worked in Better Plus business lines, primarily as real estate and insurance agents and support professionals.
Approximately 77 team members worked in technology and product development, of which the majority were located in the United States.
−Removed: None of our team members are represented by a labor union or covered by a collective bargaining agreement.
−Removed: We believe our team is a key differentiator for our business and hard work, problem solving, and curiosity are the core of our DNA.
+Added: None of our employees are represented by a labor union or covered by collective bargaining agreements.
We have made efforts to promote an inclusive and respectful culture.
−Removed: Paula Tuffin, our General Counsel, Chief Compliance Officer and Secretary, has taken on enhanced responsibilities, including leading the Management, Ethics & Compliance Committee (the “MECC”).
−Removed: The MECC is comprised of members of the senior leadership team and manages ethics and compliance issues at the Company, reporting directly to the Board.
−Removed: We have also implemented a company-wide training program on ensuring a respectful workplace and have conducted multiple anonymous engagement surveys .
+Added: Paula Tuffin, our General Counsel, Chief Compliance Officer and Secretary, leads the Management, Ethics & Compliance Committee (the “MECC”).
+Added: The MECC is comprised of members of the senior leadership team and manages ethics and compliance issues at the Company, reporting directly to the Company’s Board of Directors (the “Board”).
+Added: We have also implemented a company-wide training program to promote a respectful workplace and conduct anonymous engagement surveys .
Cyclicality and Seasonality
−Removed: The consumer lending market and the associated loan origination volumes for mortgage loans are influenced by general economic conditions, including the prevailing interest rate environment, unemployment rates, home price appreciation and consumer confidence, as well as seasonality, as home sales typically rise in the second and third quarters, with reduced activity in the first and fourth quarters, as home buyers tend to purchase their homes during the spring and summer in order to move to a new home before the start of the school year.
−Removed: Refinance mortgage loans are sensitive to movements in the interest rate environment.
−Removed: However, in the past, the effect of such housing market seasonality was
−Removed: diminished by rising interest rates and constrained housing supply.
−Removed: We continue to see diminished impact of seasonality on our business as a result of these and other factors.
−Removed: Available Information
+Added: The consumer lending market and the associated loan origination volumes for mortgage loans are influenced by general economic conditions, including the prevailing interest rate environment, unemployment rates, home price appreciation and consumer confidence.
+Added: Seasonality also has an influence, as home sales typically rise in the second and third quarters, with reduced activity in the first and fourth quarters, as home buyers tend to purchase their homes during the spring and summer in order to move to a new home before the start of the school year.
+Added: Available Information and Website Disclosure
Our website address is www.better.com.
−Removed: We make available free of charge through our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements and amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish them to the Securities and Exchange Commission (“SEC”).
+Added: We make available free of charge through our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements and
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+Added: amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish them to the Securities and Exchange Commission (“SEC”).
The SEC maintains a website that contains reports, proxy statements and other information regarding issuers that file electronically with the SEC.
These materials may be obtained electronically by accessing the SEC’s website at www.sec.gov.
+Added: Investors and others should note that we announce material financial and operational information to our investors using press releases, SEC filings and public conference calls and webcasts, and by postings on our investor relations site at investors.better.com.
+Added: We may also use our website as a distribution channel for material Company information.
+Added: In addition, you may automatically receive email alerts and other information about Better when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investors.better.com.
References to our website or other links to our publications or other information are provided for the convenience of our stockholders.
None of the information or data included on our websites or accessible at these links is incorporated into, and will not be deemed to be a part of, this Annual Report or any of our other filings with the SEC.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.