Better launches HELOC, CES wholesale channel

Better Home & Finance is rolling out a new wholesale operation where it'll offer home equity line-of-credit and closed-end second liens. 

The lender is touting a wide credit matrix, fast originations and options including 12 and 24 month bank statement approval options for small business owners. The largely direct-to-consumer shop, with an emerging retail arm, has already originated over $1 billion HELOC and closed-end seconds among its over $110 billion via its origination channels since it was founded a decade ago.

"Unlike some platforms that deliver limited pull through, Tinman AI is powered to hand-hold, process, and underwrite more challenging customer files too; allowing for greater customer satisfaction and higher broker earnings," said Patrick Kandianis, Better's Head of Business Development, in a press release Tuesday.

The company said its channel is kicking off with 10 seasoned broker partners. Better reported $240 million in HELOC volume in the second quarter, and Wednesday described a HELOC approval rate of 63% and average loan amount of $137,475.

CEO Vishal Garg also suggested of the $201 billion in HELOC volume originated nationwide last year, a very small percentage of that volume flowed through such an artificial intelligence-powered channel. The company hinted at the scale it wants to achieve, citing the over $300 billion originated in purchase mortgages by brokers last year.

Better has frequently boasted of its Tinman platform, which allows for customers to use its One Day HELOC offering which can deliver funding in five days.

The announcement comes shortly after Better's announced partnership with Finance of America, in which the publicly traded competitor will offer HELOCS and HELOANs via the Tinman platform. Better will also offer reverse mortgages as part of that agreement. 

The industry has long-highlighted Americans' rising home equity levels, with an estimated 86 million homeowners holding $21.5 trillion in tappable equity.