Better Home & Finance: The AI-Powered Mortgage Game Changer?

Better Home & Finance Holding Co. is making waves in the mortgage industry, thanks to its advanced AI technology. The company has developed two key technologies: Tinman and Betsy. Tinman organizes borrower and property data, while Betsy automates mortgage decision-making and execution. This transformation has allowed Better to operate at a lower cost than its competitors, improving speed, pricing, and accuracy. However, the market still sees Better as a struggling mortgage lender in a tough housing market. But the company's AI-driven approach could change that perception. Hedge fund manager Eric Jackson is bullish on Better's future. He sees the company's trajectory as similar to Palantir Technologies, which also leveraged AI to disrupt its industry. Jackson predicts that as mortgage and refinancing volumes recover, Better's cost advantage and technology could lead to significant growth. Better's revenue is already showing early signs of rapid growth, with a 51% increase year-over-year. The company's operating expenses have remained flat, and its AI-driven automation is scaling quickly. Jackson expects a "full re-rating" of Better's stock over the next 12 to 18 months, making it his top pick for 2026. But is Better's AI transformation enough to overcome the challenges in the housing market? Only time will tell. Investors should keep a close eye on the company's progress and the broader market trends.