2025 mortgage executive research

Redefining growth in the mortgage industry: AI in originations, experience-driven platform upgrades, and M&A vertical integration

As mortgage rates climbed for nearly three years following the COVID-era refinance boom, lenders and servicers responded by cutting costs through workforce reductions and investing selectively in origination and servicing capabilities. These moves were designed to position originators and servicers for the next interest rate rally, as they expect an 8 percent increase in origination volume in 2026¹ But are these actions enough to carry all boats through calm and rough waters?

To understand more about the future of real estate lending, KPMG LLP surveyed 80 mortgage industry executives about artificial intelligence (AI), their operational priorities, and investment plans. We learned that the leaders who will thrive in favorable and unfavorable conditions are building sustainable, borrower-centric models using three strategies –

• First, they are using AI to reduce friction and drive growth.
• Next, their modernization efforts are delivering differentiated experiences through integrated architectures and custom front-end solutions.
• Finally, they are pursuing strategic mergers and acquisitions (M&A) that cater to the borrower’s needs beyond rate.

This approach doesn’t wait for changes in the tide—it builds a vessel strong enough to sail through any storm.