This article originally appeared in the May 2025 edition of MortgagePoint magazine, online now.
When will the mortgage market see its next upswing? At this point, who really knows? We do know this, however … it will eventually rebound. No, it likely will not be an even recovery, but rates will come down and volume will increase at some point.
Hunkering down and waiting, however, is not the approach successful lenders are taking. Anyone can cut expenses and eliminate costs during market slowdowns. But then what?
In all likelihood, that eventual market rebound will signal the start of an inevitable surge of staffing up that we always see at that point in the course of things. After all, more volume requires more operational capacity and greater throughput. And that wave of recruiting, hiring, training and deployment also unfailingly leads to hiccups, uneven service levels and inconsistent quality while we wait (again) for things to even out.
Except…
It’s not the mid 2010’s anymore. This eventual rebound and how the mortgage industry responds to it will be unlike the previous pivots. You’d have to have lived in a cave for the past five years not to realize that we simply don’t originate mortgages the way we used to. A huge part of that can be credited to the introduction of a breathtaking wave of new technology. But it can also be attributed to the fact that, finally, most lenders realize that doing things the way we always have in the past is now the roadmap to a quick exit from the space. The borrower expects more. The secondary market expects more, and they will find it from the competition if we do not evolve.
The most successful lenders have already implemented effective technology and modernized their workflows. Operational strategy is no longer something we talk about while simply continuing the “lather, rinse, repeat” of the past 20 years. The way we deliver a mortgage product has become just as important as the product itself. And that will be important to remember for businesses seeking to avoid the traditional operational lag that once came with an upswing.
It’s Not Just About Tech, But How You Use It
Technology has become the backbone of the modern mortgage operation. The lenders poised for the quickest and most sustainable success have already been investing in solutions that enable efficiency, transparency, and scalability.
- Automated processes: Automation is critical for handling an uptick in volume without seeing a decline in service quality. From underwriting to document collection, lenders are turning to tools that reduce manual intervention. Automated workflows allow tasks like income verification, credit assessments and document checks to proceed with minimal human oversight, speeding up the approval process and freeing staff for more complex tasks.
- Intelligent decisioning tools: With artificial intelligence (AI) and machine learning, lenders can prioritize high quality applications, identify bottlenecks, and accurately estimate processing times. This real-time insight helps teams focus on high-priority files, improving throughput.
- Enhanced customer portals: Today’s consumer expects any purchase or loan, whether it involves a car, a student loan or even an appliance, to happen quickly and smoothly. Borrowers have come to demand seamless digital experiences. Upgrading client-facing portals with user-friendly interfaces, real-time updates and secure document uploads is already helping the top lenders to meet those rising expectations reducing calls and emails for status updates.
If You’re Not Agile, You Won’t be Successful
There’s no question that an effective workflow means the difference between smooth scaling and operational chaos. During a market rebound, lenders must adapt their workflows to be scalable, flexible, and robust.
For example, top lenders have already begun centralizing key functions, such as underwriting and quality assurance. A centralized approach ensures consistency, reduces redundancies, and allows teams to scale operations without losing control over quality.
Lenders have also already been implementing intelligent queue management, which ensures that resources are allocated efficiently. Files are prioritized based on readiness, borrower timelines or regulatory deadlines, reducing bottlenecks and optimizing workflow.
Your Tech Is Only as Good as Your Team
You’ve heard the old saying “Garbage in. Garbage out.” I’ve found over the course of my career that this is 100% true. While technology and workflow are vital, the human element remains irreplaceable. Recruiting, retaining, and empowering a talented team is essential for maintaining service quality during a surge in volume. You can invest in the shiniest, most highly touted system or app, but if your team is not prepared to use it optimally (or at all, in some cases), you have just wasted your investment and time.
It all starts with the recruiting and hiring process. Waiting for a full rebound before hiring will ensure that you are slow out of the blocks when that upswing does finally happen. How often have you heard something along the lines of “We’d love to implement a new LOS but we’re too busy taking and servicing orders.” Top lenders, in contrast, are building candidate pipelines in advance. They focus on recruiting individuals with skills in key areas such as underwriting, processing and sales, ensuring they can ramp up quickly as demand increases.
How many people you have on your team may be important, but are they operating at top efficiency? Staff cross-training creates a versatile workforce capable of stepping into different roles as needed. For example, a loan processor who understands underwriting can step in temporarily to handle increased file volumes during peak periods.
It’s also critical to ensure the team members you’ve worked so hard to recruit, hire and train not only want to stick around, but to develop into your next generation of leadership as well. A strong company culture attracts top talent and keeps teams motivated during busy times. Leaders are fostering environments where LOs feel supported through mentorship programs, ongoing training, and accessible resources. We’ve all seen it: an engaged employee is more productive and committed to delivering exceptional service.
With that in mind, offering clear pathways for advancement ensures employees view their roles as long-term investments. This reduces turnover during critical periods of growth and creates a well-trained workforce capable of scaling with the company. How many examples have we all seen of mortgage businesses that churn through team members, only to find their operating costs skyrocketing with the constant expenditure of time and cost to find new employees? In my experience, it’s a theme that’s been a little too common in the mortgage universe.
A Lean Operation Doesn’t Necessarily Mean “Short-Staffed”
Lean operations reduce waste and improve efficiency, but in a strategically effective operational model that relies on sustainability, it also requires teams to have the tools and authority to make decisions.
Successful lenders seek out and eliminate unnecessary steps and redundancies in their processes. For instance, digitizing manual workflows and consolidating platforms reduces the friction that can slow down production.
Some firms also have yet to learn how to get out of their own way. Rigid hierarchies slow down decision-making adding time and, eventually, cost to your operation. By giving employees clear guidelines and the authority to resolve common issues, lenders improve responsiveness and reduce delays. For example, allowing underwriters to approve exceptions within predefined parameters speeds up approvals without sacrificing oversight.
Finally, feedback from frontline staff helps identify pain points in workflows and refine processes in real time. We can’t fix something if we don’t know what’s really broken.
Have a Plan, Then Execute It Impeccably
Becoming a market leader in today’s mortgage universe is more likely for those who treat scaling as a deliberate strategy instead of a reactionary process. We’ve been a knee-jerk kind of industry far too often in the past. But I’ve seen it time and time again. The best in the business always have a plan (as well as a Plan B, C, and D).
Proactive firms engage in scenario planning to anticipate different levels of demand. This includes preparing for optimistic, moderate, and conservative growth scenarios, ensuring operational plans can adapt as needed. That’s especially important in such uncertain times.
We’ve all heard the phrase “throw it over the fence.” Usually, when I’ve heard it, there has been an undertone of negativity or embarrassment to it, as if that process would be best performed in house. But we all outsource. It’s actually a necessary ingredient for success. Trusted third-party service providers can help bridge the gap during periods of high volume. These partnerships allow lenders to scale quickly without the long lead times required to hire and train new employees. The best operations carefully vet their vendors, make their expectations clear and then actively monitor their performance.
Ultimately, a market rebound is not just an operational challenge—it’s an opportunity to win borrower loyalty. Lenders who provide excellent service during this critical time will earn repeat business and referrals.
It starts with proactive communication. Borrowers appreciate regular updates, especially during busy times. Automated messaging systems, including bots, apps, and even AI technology, can keep clients informed without overwhelming staff.
That being said, even with automated systems, personalization remains essential. Ensuring borrowers can easily reach a knowledgeable team member for assistance builds trust and satisfaction. For most borrowers, a mortgage loan is part of the largest transaction of their lives. They don’t want to entrust such a complex process completely to a chat bot or automated text message.
Finally, those who fail to learn from the past are doomed to repeat it. We have a universe of lessons available to us after the previous market rebounds. The best lenders pay attention and learn from previous cycles. By analyzing what worked—and what didn’t—during similar circumstances in the past, they refine their strategies to avoid common pitfalls.
That starts with conducting thorough reviews of prior peak periods, which can show us where we succeeded and where we came up short. Whether it’s technology gaps, staffing issues, or workflow inefficiencies, understanding the root causes of past challenges helps lenders prepare more effectively. Additionally, comparing performance metrics against industry peers provides valuable context. Top-performing lenders use benchmarking to identify competitive advantages and areas where they need to catch up.
In the Next Upcycle, the Most Flexible Will Succeed
Let’s face it. Even the best and most prepared businesses will still experience some level of operational lag during a market rebound. That is true especially if we see a surprisingly sharp pivot.
However, with the right mix of technology, workflows and strategic foresight, lenders can not only weather the early surge in demand but also set the stage for sustained growth. By adopting proactive strategies and committing to continuous improvement, the best lenders will position themselves as industry leaders, delivering exceptional service and results during this pivotal time.
For organizations willing to make these investments now, the payoff will come not just in the form of immediate gains but also in long-term resilience and borrower trust. In an industry where agility and adaptability are key, the winners will be those who are prepared to move decisively as the market accelerates.
