Better pivots to a partner-led model as new leadership targets $45M in cost reductions
Better Home & Finance Holding Company has named board member Daniel Lewis interim chief executive officer, effective immediately, as founder Vishal Garg steps down from the role he has held since the company's inception.
Garg will remain on the board and work alongside Lewis to facilitate what the company described as an orderly leadership transition.
The move signals a strategic reset at one of the mortgage industry's most closely watched AI-native fintechs.
Lewis, who brings more than 30 years of operating, investment, and governance experience, will manage Better's day-to-day operations, execute the board-approved operating plan, and set the company's strategic direction.
He joined Better's board on July 27, just one week before his appointment, following several months advising the company's management committee on cost reduction, enterprise partnerships, and strategic planning.
The board has indicated no fixed timeline for naming a permanent chief executive, and has said it will consider all suitable candidates, including Lewis.
"Better is at an important inflection point, and now is the right time for new leadership," said Garg in a statement.
Harit Talwar, chairman of the board, acknowledged Garg's role in building out the company's foundational technology stack, including its Tinman origination platform and Betsy AI loan agent.
A sharper focus on the broker channel
Lewis arrives with an explicit mandate to move Better away from high-cost direct-to-consumer acquisition toward a platform model in which partners — including enterprise clients and independent mortgage brokers — own customer relationships.
As AI-driven consolidation reshapes the mortgage origination landscape, Better's bet is that Tinman can serve as the manufacturing backbone for distribution partners rather than compete head-on with lenders spending heavily on brand building.
"Looking ahead, Better will win by leveraging that experience to manufacture mortgages efficiently, not by outspending competitors on customer acquisition," Lewis said.
He also noted that home equity line of credit (HELOC) demand is strengthening and flagged it as an area of intended expansion.
AI adoption among mortgage brokers is accelerating in 2026, with a growing share of originators prioritising automation and platform-led workflows as a competitive edge, a dynamic Better is positioning itself to serve.
Better also expects annualized cost reductions to exceed $45 million by year-end, substantially above its previously announced $25 million target.
The company said the expanded program will include increased automation, streamlined operations, and broader expense management, with further detail expected at its August 6 earnings call.
Volume climbs as losses persist
Better released preliminary second-quarter results alongside the leadership announcement. Funded loan volume rose 38% year over year to $1.67 billion, and revenue increased 28% to $54.7 million, according to the company.
Despite that growth, Better recorded a preliminary net loss of $30.6 million and an adjusted EBITDA loss of $14.0 million, a figure that includes a $6.5 million benefit from the release of a Truth in Lending Act/Real Estate Settlement Procedures Act (TRID) reserve tied to loans originated before June 2022.
Independent mortgage brokers seeking to scale without adding headcount are among the originators Better is now explicitly courting through its Tinman platform infrastructure.
Better continues to pursue the sale of its United Kingdom banking subsidiary, Birmingham Bank, through a process led by investment bank FT Partners.
The company's second-quarter earnings release and investor call have been moved to August 6, after market close, from the previously scheduled date of August 10.
The preliminary results remain subject to completion of Better's financial closing procedures.
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