Better.com launches Betsy™, the First Voice-Based AI Loan Assistant for the US Mortgage Industry

Rhea-AI Summary

Better.com, a leading digital homeownership company (NASDAQ: BETR), has launched Betsy™, the first voice-based AI Loan Assistant for the US mortgage industry. Betsy leverages AI and large language models to enhance operational efficiency and improve customer experience throughout the mortgage journey.

Built on Better.com's proprietary Tinman™ loan origination platform, Betsy can communicate with customers, answer inquiries, and collect application data in real-time. Tinman's centralized data environment allows Betsy to access and interpret information with full context, enabling accurate and detailed responses.

The company believes Betsy will catalyze growth by making Loan Officers, Processors, Coordinators, and Closers more efficient. Better.com has already reduced the average cost to sell and process a mortgage by over 35% compared to the industry average of $9,000 per loan, and expects further cost reductions with Betsy's implementation.

Positive

• Launch of Betsy™, the first voice-based AI Loan Assistant for the US mortgage industry
• Potential for increased operational efficiency and improved customer experience
• 35% reduction in mortgage processing costs compared to industry average
• Expected further cost reductions and growth catalyzation with Betsy's implementation

Negative

• None.

Insights

Tech Expert

Betsy, Better.com's new AI Loan Assistant, represents a significant technological leap in the mortgage industry. By leveraging generative AI and large language models (LLMs), Betsy has the potential to revolutionize the loan application process. The key innovation lies in its integration with Tinman™, Better.com's proprietary loan origination platform, which centralizes all loan data in a single, comprehensive structure.

This unified data approach gives Betsy a important advantage over traditional mortgage software systems, which typically spread information across multiple platforms. The AI can access and interpret data with full context, enabling more accurate and detailed responses to customer inquiries. This could lead to faster processing times, improved customer service and increased operational efficiency.

However, it's important to note that while Betsy may significantly enhance non-licensed tasks, it's not replacing licensed Loan Officers for critical discussions on interest rates and other regulated activities. The technology's success will depend on its ability to seamlessly integrate with human expertise and navigate complex regulatory requirements in the mortgage industry.

Financial Analyst

Better.com's launch of Betsy could have significant financial implications for the company and the broader mortgage industry. The potential cost savings are substantial, with Better.com claiming to have already reduced the average cost to sell and process a mortgage by over 35% compared to the industry average of nearly $9,000 per loan.

If Betsy can further drive down costs as anticipated, it could lead to:

• Improved profit margins for Better.com
• Lower interest rates for customers, potentially increasing market share
• Enhanced competitiveness in the mortgage industry

However, investors should consider that the initial investment in AI technology and ongoing development costs could impact short-term financials. The long-term success will depend on customer adoption, regulatory compliance and the ability to scale the technology effectively. While the potential is significant, it's important to monitor key performance indicators in upcoming financial reports to assess the actual impact on Better.com's bottom line and market position.

Betsy leverages true generative AI to enable Better’s Loan Officers to dramatically increase efficiency and customer satisfaction

NEW YORK--(BUSINESS WIRE)-- Better Home & Finance Holding Company (NASDAQ: BETR) (“Better.com”), the leading digital homeownership company, today announced the launch of Betsy™, the first voice-based AI Loan Assistant for the US mortgage industry. As the latest innovation built through Tinman™, the company’s proprietary loan origination platform, Betsy enhances the operational efficiency of Better.com’s licensed Loan Officers, Processors and Closers and improves its customer experience with more intelligent, timely and accurate answers to customer inquiries on an instant basis.

Betsy leverages AI and large language models (LLMs) to accelerate a customer’s entire mortgage journey from pre-approval start to closed loan. The platform is programmed to communicate with prospective and existing Better.com customers to answer mortgage application inquiries and to collect and verify outstanding application data, all while interfacing with Tinman™ in real-time. Uniquely, Tinman is a single, unified system where all relevant facts of a loan application are stored within one comprehensive data structure. This contrasts with traditional mortgage industry software, where information is spread across multiple systems and datasets such as Point of Sale, CRM, Loan Origination System, Document Management System, and Pricing Engine. Tinman’s centralized and context-rich data environment is organized in a hierarchical, tree-like structure that is easily understood by LLMs like Betsy. This allows her to access and interpret information with full context, enabling her to understand the nuances of each customer's loan application. As a result, Betsy can accurately answer questions in great detail and assist with outstanding tasks efficiently. The results enable faster service times, enhanced self-service capabilities, improved customer engagement, and greater sales efficiency.

“This launch is a seismic moment for Better and the entire mortgage industry,” said Vishal Garg, CEO & Founder of Better.com. “Fulfilling a mortgage loan is labor-intensive and rules-driven, and Betsy serves as a highly intelligent front end enabling customers to automate the process with the full power of our proprietary loan engine, Tinman. This isn’t just another text chatbot or document processing service launched through a traditional CRM or OCR vendor, this is true disruption of the non-licensed tasks performed by armies of traditional customer service reps, Loan Officers and Processors in the mortgage industry. We believe that Betsy will catalyze our growth over the coming years by making our existing Loan Officers, Processors, Coordinators and Closers far more efficient. We are only beginning to witness how AI will disrupt the traditional mortgage industry, and our technology is setting the standard in delivering maximum value, savings and service to American homeowners.”

With access to a repository of customer-provided application data, Betsy enables Loan Officers to focus their time on discussing interest rate details and other licensed activity with a seamless transition of information.

“The average cost to sell and process a mortgage in the United States is nearly $9,000 per loan,” said Kevin Ryan, CFO of Better.com. “Utilizing Tinman’s capabilities, we have been able to automate time and labor-intensive components of the mortgage process and reduce that cost by over 35% of the industry average. As we continue to supplement Betsy’s capabilities, we believe this technology will significantly drive down our costs further, resulting in lowered rates and superior service for our customers.”

Better.com plans to develop additional components to Betsy’s AI technology to bolster its consumer offerings and make its Loan Officers even more productive in the near future. Betsy is live on the Better.com website and a demonstration of Betsy's capabilities is available at: better.com/betsy.

About Better Home & Finance Holding Company

Since 2016, Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) has leveraged its industry-leading technology platform, Tinman™, to fund more than $100 billion in mortgage volume. Tinman™ allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates and close their loan all entirely online. Better’s mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo mortgage loans. Better launched its "One Day Mortgage" program in January 2023, which allows eligible customers to go from click to Commitment Letter within 24 hours. Better was named Best Online Mortgage Lender by Forbes and Best Mortgage Lender for Affordability by WSJ in 2023, ranked #1 on LinkedIn’s Top Startups List for 2021 and 2020, #1 on Fortune’s Best Small and Medium Workplaces in New York, #15 on CNBC’s Disruptor 50 2020 list, and was listed on Forbes FinTech 50 for 2020. Better serves customers in all 50 US states and the United Kingdom.

Forward-Looking Statements

This press release contains forward-looking statements related to, among other things, the development and use of artificial intelligence by Better.com. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including Better.com’s ability to effectively manage the risks, challenges and efficiencies presented by using artificial Intelligence in its business. Such factors can be found in Better.com’s annual report on Form 10-K and Better.com’s quarterly reports on Form 10-Q, which are available, free of charge, at the SEC’s website at www.sec.gov. New risks and uncertainties arise from time to time, and it is impossible for Better.com to predict these events or how they may affect Better.com. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Better.com undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

For more information, follow @betterdotcom.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017222780/en/

Nneka Etoniru

better@avenuez.com

Source: Better Home & Finance Holding Company

FAQ

What is Betsy™ and how does it benefit Better.com (BETR)?

Betsy™ is Better.com's voice-based AI Loan Assistant that uses generative AI to enhance operational efficiency and customer satisfaction. It benefits Better.com (BETR) by accelerating the mortgage process, improving customer service, and potentially reducing costs.

How does Betsy™ interact with Better.com's (BETR) Tinman™ platform?

Betsy™ interfaces with Better.com's (BETR) proprietary Tinman™ loan origination platform in real-time. Tinman's centralized data environment allows Betsy to access and interpret information with full context, enabling accurate and detailed responses to customer inquiries.

What cost savings has Better.com (BETR) achieved with its technology?

Better.com (BETR) has reduced the average cost to sell and process a mortgage by over 35% compared to the industry average of $9,000 per loan, using its Tinman platform. The company expects further cost reductions with the implementation of Betsy™.

How does Betsy™ impact Better.com's (BETR) Loan Officers' work?

Betsy™ enables Better.com's (BETR) Loan Officers to focus on discussing interest rate details and other licensed activities by handling customer inquiries and data collection. This is expected to increase efficiency and productivity of Loan Officers, Processors, Coordinators, and Closers.