The Mortgage Collaborative (TMC), a consortium of mortgage lenders dedicated to innovation and collaboration, has released its latest Pulse of the Network report, offering key insights into the challenges and opportunities shaping the mortgage industry in 2025.
The survey, conducted with decision-makers-including CEOs, COOs, and department heads from banks, credit unions, and independent mortgage banks (IMBs)-highlights how lenders are preparing for a shifting market landscape.
“In a rapidly evolving mortgage environment, industry leaders are focusing on operational efficiency, strategic growth, and innovative technology to stay competitive,” says Jodi Hall, CEO and president at The Mortgage Collaborative, in a release. “Our Pulse of the Network report provides a real-time look at the industry’s top challenges and the strategic priorities guiding lenders into 2025.”
Lenders identified the following five critical issues at the top ones they faced in 2024:
Housing Inventory & Affordability: Low inventory and high home prices continue to squeeze the market, limiting lending opportunities.
Rising Costs & Margin Pressure: Loan origination costs outpace revenue growth, driving the need for leaner operations.
Talent & Recruitment Struggles: Finding and retaining top Loan Officers (LOs) remains a challenge as competition intensifies.
Technology Inefficiencies: Many lenders report their tech stacks are costly and underperforming, prompting a shift toward smarter automation.
Revenue Growth in a Tight Market: With fewer refinancing opportunities, lenders are focusing on new loan products and stronger borrower relationships.
What follows are the top five challenges lenders look forward to addressing in 2025:
Boosting Loan Volume & Revenue: Expanding partnerships, launching new loan products, and enhancing digital marketing.
Optimizing Technology: Streamlining tech stacks, automating workflows, and improving borrower experiences.
Enhancing Talent Retention: Strengthening workplace culture, compensation, and mentorship programs.
Building Leaner Operations: Cutting inefficiencies and leveraging AI to reduce manual workloads.
Strengthening Industry Collaboration: Engaging in peer networks, benchmarking, and market insights.
The mortgage industry is poised for transformation in 2025, and TMC’s Pulse of the Network report underscores the importance of adaptability, strategic investment, and collaboration. By focusing on efficiency, technology, and talent, lenders can position themselves for growth in an unpredictable market, the organization says.
“At TMC, we believe success isn’t just about navigating today’s challenges-it’s about preparing for the future,” Hall adds. “Our network is committed to empowering lenders with the insights, tools, and connections needed to thrive in any market conditions.”
