Blend Insights 2026 Digital - Flipbook - Page 2
MORTGAGE
INSIGHTS
K EY ME TR ICS
76%
Average loan-to-value for
mortgages originated in the first
quarter of 2025.
39%
Mortgages originated in the first
quarter of 2025 by first-time
homebuyers.
Originating a home loan is an exercise that requires mountains of paperwork.
Automating the review can help streamline the process.
Source: Federal Housing Finance Agenc y
As low demand for residential mortgages persists, now could be the perfect
time to revamp operations.
KEY TAKEAWAYS
Mortgage originations totaled 907,000 in the first quarter of 2025, according
to the latest available data from the Federal Housing Finance Agency. That’s
• Banks famously ramp up mortgage
hiring, only to later lay off staff
when demand for home loans slows.
Automation can help lessen those
swings.
• Higher interest rates have lowered
demand for mortgages, giving
lenders time to make this business
line more efficient.
• Automated document review
can improve the experience for
customers, who can be notified in
real time if something is wrong with
their application.
• More fintech partners are
leveraging AI technology to
transform the mortgage process,
making it critical for banks to
confirm long-term fit before
adopting solutions.
down from 3.8 million originations recorded in the first quarter of 2021, when
low interest rates contributed to incredible demand. In early 2026, the average
30-year fixed-rate mortgage was still more than 6%, compared with the sub-3%
rates seen during the Covid-19 pandemic.
This slow period, when staff members aren’t hustling to help as many homebuyers as possible, offers banks a chance to review their mortgage operations
and determine if the process can be improved. That could make it a good time
for executives to get employees on board. “There is more time to invest in that
change management,” says John Whipple, head of product at Blend, a digital loan
origination platform.
Ever-evolving technology, including artificial intelligence, is being used to
make the mortgage business more efficient and potentially reduce the volatile
nature of staffing those departments. There is also the opportunity to make the
experience of buying a home less stressful.
“Mortgages are a super dynamic space,” Whipple says. “The pace of change is
unprecedented.”
Decreasing Volatility in Mortgage Operations
SouthState Bank of Winter Haven, Florida, is actively working to make its
mortgage operations more efficient. The subsidiary of $67.2 billion SouthState
Bank Corp. wants to further integrate systems it implemented several years ago
when the mortgage business was booming, says Shane Horan, director of mortgage strategic initiatives for the institution.
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