2025 Mortgage Lending Trends: Is Your Credit Union Ready for What’s Coming

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Originally published on CUInsight.com

As mortgage rates are projected to trend downward in the new year, the market is gearing up for an upswing in loan volume. Fannie Mae projects that rates will dip to an average of 5.9% in 2025, prompting a surge in mortgage origination volume from $1.68 trillion to $2.155 trillion. This shift spells significant opportunity for lenders-but only for those who are prepared.

With projections indicating an influx of homebuyers in the year ahead, now is the time for your credit union to reevaluate its mortgage processes. Credit unions stand out for their personalized service and dedicated financial support-qualities that members value and trust. So, to truly capitalize on this surge and manage the anticipated demand, investing in the right mortgage technology tools is essential. However, achieving meaningful results requires thoughtful planning and a well-defined strategy to maximize your investment and continue delivering an exceptional experience for every borrower.

Preparing for an Efficient Mortgage LOS Upgrade

Selecting the right mortgage technology for your credit union can be the difference between merely reacting to market shifts and proactively guiding your members through them. But upgrading your mortgage loan origination system (LOS) is more than a software change. Too often, companies fall into the trap of purchasing a new system only to implement it exactly as they did before, missing the chance for meaningful transformation. Instead, this is the perfect moment to rethink how your credit union supports its members in the mortgage journey. It's your opportunity to resolve longstanding pain points, streamline your processes, reduce per-loan costs, and enhance your ability to maintain and attract top-tier loan officers-all of which are critical for staying competitive. To be truly effective and set your credit union up for a smooth, efficient transition you need a carefully structured approach with a clear timeline and solid support every step of the way.

The first step is to ask the right questions-both of yourself and any potential LOS partner-to gain a clear understanding of the pre-implementation and implementation processes. The following questions are designed to guide you step by step through this journey, addressing practical, operational, and strategic considerations that will empower you to execute your upgrade with confidence.

Questions To Ask Prospective Mortgage LOS Partners

1. How much time and effort from our team is required?
2. What level of technical expertise will we need at the outset?
   • For example, will developers, IT, or consultants be required?

1. Will we be assigned dedicated implementation resources?
   • If yes, when and how will they engage with us and support the project?
   • If not, why not, and what alternative support is provided?

1. What skills and resources are needed on our team to be successful?
   • This could include subject matter experts, testers, trainers, and a project manager, among others.

1. What level of support is required to maintain the system?
   • Does it need a full-time administrator, or can it be managed with part-time support? Do you offer any admin services to help augment staffing?

1. What support will you provide during the user acceptance testing (UAT) phase to ensure the system meets our specific operational needs?

1. What does the go-live process look like, and what support will be available to our team?
   • For example, will there be a dedicated support team on-site or available remotely to address any immediate issues and ensure that staff is prepared to assist members effectively?

Questions To Ask Yourself

1. What pain points are we experiencing with our current LOS, and how will the new software address these issues?

1. When will we lose access to our current Mortgage LOS vendor?

1. What's our go-live deadline before losing access to our existing system?

1. Do we understand the people, time, and contracts required to start the implementation?

1. Do we have the right team members in place to be successful today?
   • If not, what steps must be taken to close that gap, and how long will it take?

1. When is the optimal time for us to engage in the implementation? Are there seasonal or organizational factors at play?

1. Have we secured the necessary approvals and contracts with all third-party vendors?
   • If not, what's required to address these gaps, and how long will it take?

1. Are there any conflicting priorities that might affect the timeline?
   • For example, consider other major projects, peak production volume, PTO schedules, or audit cycles.

1. Is there consensus across the organization to move forward with a technology change?
   • If not, what actions are needed to align everyone with this shift?

Setting Up Your Credit Union for Mortgage Success in 2025 and Beyond

The mortgage market forecasts are in, and all signs point to opportunity for your credit union. In the year ahead, simply reacting to market demands won't be enough. Relying on the status quo could limit growth and member satisfaction. Instead, taking proactive steps with strategic technology upgrades now can empower your credit union to confidently navigate the mortgage market head-on, delivering exceptional member experiences and building lasting relationships at every step.

To learn more about how to prepare your credit union's mortgage lending process for future growth, register for our upcoming webinar! Click Here to Register.

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