Finance of America is now offering home equity loans through a new agreement with Better Home and Finance.
The reverse mortgage giant will offer HELOAN and home equity line of credit products for the first time using Better's proprietary Tinman AI platform, the companies announced Tuesday.
The move is a significant step for Better, which has hinted at larger partnerships in its recent earnings reports.
"Better's plug-and-play technology lets us instantly offer and originate these new products without additional infrastructure, while its native AI capabilities ensure a seamless and efficient experience for both borrowers and our team," said Kristen Sieffert, president of Finance of America, in a press release.
The Tinman platform can facilitate closings and fundings in just a few days, Better claims. Finance of America will also implement its own version of Better's
The mostly direct-to-consumer Better reported $240 million in HELOC volume in the second quarter, accounting for 20% of its total production this past spring. Better has not posted a profitable quarter since going public in August 2023, but crossed a billion-dollar origination threshold recently and has a growing retail division.
Better will now offer Finance of America's first- and second-lien reverse mortgage products for homeowners age 55 years or older. The Texas-based reverse lender funded just over $600 million of reverse mortgages in the second quarter and also posted an $80 million profit.
The partnership, while not a merger nor acquisition, comes amid a busy year for such deals between industry players. While some originators like
