Weekly Real Estate News
BREAKING NEWS: Better Home & Finance Holding Company is facing a newly filed federal securities class action alleging investors were misled about slowing mortgage conversion rates and the company’s goal of reaching $1 billion in monthly funded loan volume.
The lawsuit, Gastwirt v. Better Home & Finance Holding Company et al., Case No. 1:26-cv-08219, was filed Sept. 21 in the U.S. District Court for the Southern District of New York. It seeks to represent investors who purchased or otherwise acquired Better securities between March 13 and May 7, 2026.
The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The allegations have not been adjudicated, and the filing of the lawsuit does not establish liability.
Lawsuit focuses on Better’s $1 billion monthly volume target
According to notices describing the complaint, the plaintiff alleges Better failed to disclose that its mortgage conversion funnel was already slowing because of macroeconomic factors and that the company’s target of reaching $1 billion in monthly funded loan volume was therefore likely to be delayed.
The complaint further alleges that statements about Better’s business, operations and prospects were materially misleading or lacked a reasonable basis as a result.
Those are allegations made by the plaintiff and remain subject to litigation.
Better shares fell after May disclosure
The lawsuit points to Better’s May 7 first-quarter financial results. The company provided second-quarter loan-volume guidance of $1.575 billion to $1.725 billion, below its earlier goal of reaching $1 billion in monthly loan volume by the end of May.
Better said at the time that conversion rates had declined from first-quarter levels because of macroeconomic factors and that customers were not converting at the same rate following a spike in interest rates and escalating geopolitical tensions.
Better shares closed at $30.52 on May 7, down $12.17, or approximately 28.5%, from the prior day’s closing price of $42.69, according to notices describing the complaint.
Another legal front for Better
The securities case arrives while Better is already navigating a highly public corporate governance dispute involving founder and former CEO Vishal Garg and the company’s board. The investor lawsuit is separate from those proceedings.
The newly filed action follows a series of securities-law investigations announced by plaintiffs’ firms earlier this year. The Sept. 21 filing marks a different stage: a federal class action complaint has now been filed.
Investors covered by the proposed class have until Nov. 20 to seek appointment as lead plaintiff, according to notices concerning the case.
Sources: Glancy Prongay Wolke & Rotter LLP filing notice; additional current legal notices concerning Gastwirt v. Better Home & Finance Holding Company et al.
Photo: Tomas Eidsvold/Unsplash.
