Better Home & Finance Holding Co. reported $34.1 million in annualized cost savings this week as part of its Better 2.0 turnaround plan, moving closer to a $64.2 million reduction target. The company eliminated management and loan support positions, replacing some duties with artificial intelligence.
The additional $3.7 million in savings came from further reductions in mortgage operations and corporate organization. Founder Vishal Garg confirmed that loan support roles previously held by home lending associates are now handled by Better's AI system, Betsy.
Better removed managers representing more than $3.5 million in annualized savings. The company also eliminated its home lending associate position, which handled early customer outreach and application preparation.
During the third quarter, Better recorded a net loss of $36.5 million, down from a $39.1 million loss in the same quarter last year. The company originated $1.4 billion in loans during the quarter, up 15% year over year.
Better added five brokerages to its wholesale platform, which now includes 43 brokerages representing 1,382 brokers and $378 million in trailing 12-month origination volume. The company launched an AI-powered home equity line of credit product with an existing partner and is working with three other major partners on additional offerings.
On capital markets, Better received five term sheets for approximately $50 million in debt financing tied to its planned sale of Birmingham Bank. The company hired executive search firm Daversa Partners to lead its CEO search.