Outdated mortgage tech is draining lenders: Here’s how to stop the bleeding

The mortgage market has already undergone significant changes, with volatility becoming the norm and margins squeezed to the limit. If your business remains focused solely on purchase and refinance, you are falling behind instead of catching up.

Successful lenders today are those who are diversified, quick, and adaptable. Recent data shows increases in HELOC and home equity loan originations in the third quarter of 2024. Homeowners are turning to HELOCs as a way to access home equity without refinancing their low-rate mortgages, marking a shift in the market.

To stay competitive, lenders must tap into various revenue streams beyond loan origination, such as HELOCs, home equity loans, agriculture loans, and explore new channels like direct-to-consumer or wholesale. Outdated technology systems can hinder a lender’s ability to pivot quickly and take advantage of emerging opportunities.

Efficiency and agility are crucial in today’s lending landscape, particularly when introducing new products. Outdated point-of-sale systems can hinder innovation and customer experience. Operational efficiency is key, as manual tasks and workarounds can lead to errors and extended closing times.

Modernization and flexibility are essential for lenders to stay relevant and competitive. Lenders need to adapt quickly to market changes and ensure their technology systems, especially the point-of-sale, can support their business strategies. Failure to upgrade could result in being left behind in the ever-evolving mortgage industry.