Latest STRATMOR Report Outlines Steps Lenders Must Take To Thrive In 2025

While their optimism is growing, lenders must elevate customer experiences and focus on technology ROI to capitalize on a rejuvenated housing market in 2025, according to the latest Insights Report from STRATMOR Group, a mortgage advisory and consulting firm.

In this month’s InFocus article, “Get on Your Feet: Insights Gleaned from Mortgage Industry Events for a Prosperous 2025,” STRATMOR experts who participated and spoke at many industry conferences in 2024 share their strategic recommendations for lenders preparing for next year’s market.

After two challenging years of high rates and low inventory, STRATMOR experts saw a marked increase in lender enthusiasm at industry events this year—particularly at the Mortgage Bankers Association Annual Convention in October.

“The lenders who persevered through the painful downturn are now showing signs of resiliency,” says Brett McCracken, senior advisor at STRATMOR. “We’re seeing lenders highly engaged at conferences, actively seeking ways to retool their platforms with optimal solutions for their business models.”

STRATMOR’s InFocus article outlines the following key points lenders should keep in mind heading into 2025:

• Customer Experience Focus: 90% of borrowers choose their lender based on personal experience or trusted referrals, highlighting the critical importance of service quality.
• Technology ROI: Lenders are carefully evaluating their technology investments, prepared to replace systems that don’t deliver.
• Collaboration with Multiple Vendors: There’s an increasing trend toward multi-partner meetings to address integration challenges and improve both employee and customer experiences.

STRATMOR Customer Experience Director Mike Seminari emphasizes the importance of redefining success metrics. “Lenders need to shift focus from producing customers who love their loan officers to creating a simple and easy process for the borrower,” he said. “Our data shows this approach is four times more valuable in terms of creating repeat and referral business.”

To achieve meaningful ROI, STRATMOR experts say technology investments must be accompanied by careful attention to people and processes. Senior Partner Nicole Yung stressed the critical role of technology implementations and making sure lenders have the buy-in of employees.

“Lenders are hoping that the work they put into people, processes and technology during the down markets of 2023 and 2024 will yield positive results as volume increases,” Yung said. “They are prepared to terminate or replace any technology that fails to deliver as expected.”

Sue Woodard, STRATMOR senior advisor, points to emerging technological innovations, such as voice AI, that have the potential to improve cost efficiencies and borrower experiences. “Smart lenders are thinking outside the box with new technologies, not to remove humans from the process, but to optimize costs while ensuring meaningful client connections at crucial moments in the mortgage journey,” she said.

Senior Partner Garth Graham underscores the importance of in-person connections at conferences, especially in today’s digital age when meetings are often conducted virtually. “People prefer to do business with people they like,” he said. “When you engage in real, meaningful dialogue and show others that you care about them as people, you can better understand their challenges and react empathetically.”