Investors allege Better.com overpromised on AI mortgage platform
Better Home, the New York-based fintech lender that operates as Better.com and trades on NASDAQ under the ticker BETR, built its growth pitch around Tinman, its proprietary AI platform for mortgage origination. Tinman supports underwriting, loan processing, and compliance. The company had been expanding its use through enterprise partnerships – deals where third parties use the platform to power their own mortgage operations or where Better Home originates loans directly for partners’ customers.
The filing alleges that between March and August 2026, company leadership made a series of misleading statements about how well those partnerships were performing and where they were headed.
A $1 billion target and “the progress is real”
The timeline, according to the suit, starts March 13, 2026. That morning, Better Home announced its fourth-quarter 2025 results and reaffirmed guidance calling for “$1.0 billion in Monthly Loan Volume by the end of May 2026” and “Adjusted EBITDA breakeven by the end of Q3 2026.” On the earnings call, founder and then-CEO Vishal Garg described the partnerships as a “shared journey” and said, “The progress we are seeing is real.” The company’s then-CFO echoed the message, telling investors the financial trajectory was “already beginning to reflect this shift.”
That April, Better Home issued a press release for its preliminary first-quarter results, saying it had “clear line of sight” to the EBITDA breakeven target.
The cracks show
By May 7, the filing alleges, the tone shifted. Better Home disclosed declining conversion rates and acknowledged the $1 billion monthly volume target would likely be delayed. The stock fell 28.5% in a single day – dropping $12.17 per share, from $42.69 to $30.52.
