National Mortgage News, Arizent’s leading resource for senior executives in the mortgage sector, publishes its latest research report, Predictions 2025: What To Expect in the Year Ahead. Sponsored by Hyland™, the survey of industry participants reveals mortgage companies are expecting interest rates to fall and, as a result, preparing for a rebound by increasing headcount.

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Accordingly, some lenders may re-examine where they allocate their spending and staff by establishing a presence in the types of channels that many companies downsized during the market slowdown. Mortgage businesses are seeking to make improvements and upgrades to enhance customer service, marketing and other client-facing functions. The strategy will require investments in technology, including artificial intelligence.

Key insights from the report include:

  • 70% of mortgage companies anticipate expanding their workforce in 2025, with nonbank lenders leading the charge.
  • Artificial intelligence cements itself as an asset, with 73% of respondents identifying data verification and administration as key areas where AI can improve loan processes.
  • Persistent issues like rising home prices and limited inventory remain top concerns.
  • In the wake of severe weather and a global pandemic, 74% of respondents believe natural disasters and health concerns will disrupt the housing market.

“The past year marked the beginning of recovery for an industry reeling from sharp business pullbacks,” says Janet King, Vice President of Research at Arizent. “Not all went according to plan, though, and the specter of 2024’s hits and misses hangs over the industry’s expectations for the next 12 months. While optimism appears, so does an awareness that turbulence and volatility could disrupt growth.”

Elevated interest rates and low levels of affordability continue to be among the challenges mortgage businesses face. At the same time, many companies express optimism for growth and are making needed investments in staffing and technology. In particular, AI has established itself as an important mortgage tool, and leaders in the industry are actively looking for strategies, resources and assistance to utilize it to its best effect.

To dive deeper into the findings — including innovative solutions to attract and serve borrowers, future tactics to address affordability and how climate change is expected to impact the housing market — download the full report here: https://www.nationalmortgagenews.com/news/2025s-greatest-challenges-according-to-mortgage-lenders

Research methodology

Data was collected in October and November 2024 by Arizent, the parent company of National Mortgage News, through an online survey, with responses arriving both before and after the presidential election. A total of 128 qualified professionals from across the industry took part.