Borrower retention is the new battleground in mortgage lending

How will you retain your customers?

The mortgage market is shifting fast, and lenders are racing to keep pace. With tech investments ramping up and strategic acquisitions reshaping the landscape, the push to expand market share has never been stronger. But growth isn’t just about scale anymore – it’s about playing the long game by retaining existing customers through strategic, tech-powered engagement in an increasingly competitive market.

Falling rates are set to unlock substantial growth opportunities in refinancing, home equity lending and new purchases, fueled by record home equity levels and pent-up demand. Retention rates reported in the June 2025 ICE Mortgage Monitor reveal fewer than one in four refinancing borrowers were retained in Q1 2025, including just 23% of cash-out refinancers and 26% of those adjusting their rate or term. It’s critical to prepare your operations for when the housing inventory expands and interest rates decline.

But while the market is ripe, it's far from risk-free. The battle for borrower loyalty is intensifying, and lenders equipped with digital recapture strategies and data-driven, personalized engagement are in prime position to pull borrowers away from less agile competitors.

Your next loan is probably already in your portfolio

Borrower recapture is now at the forefront of growth strategy in mortgage lending. With refinance, home equity lending and new home purchases expected to rise, the most valuable leads may already be sitting in your servicing portfolio. By proactively connecting with existing borrowers, lenders can reduce acquisition costs, protect portfolio value and drive stronger conversion rates across the refi, equity and purchase spectrum.

The fastest path to growth is to be top of mind with your customers the next time they need a loan. Lenders who harness the power of data, automation, and personalized outreach can anticipate borrower needs, deliver seamless experiences and build lasting relationships. It’s not just about closing a loan; it’s about connecting at the right moment with the right message, keeping borrowers engaged and fueling long-term growth in a highly competitive market.

Data is your recapture roadmap

Unlocking the full potential of customer recapture requires comprehensive data and cutting-edge business intelligence tools that leverage advanced analytics to identify opportunities within your operational systems. By combining servicing portfolio data – the most valuable and up-to-date source of homeowner information – with valuations, comparable property information, detailed transaction data, and property characteristics, etc. – these tools can identify high-propensity borrowers who are most likely to refinance, qualify for a home equity loan or pursue a new home purchase.

These actionable insights help lenders proactively engage borrowers at critical financial moments, strengthening relationships while maximizing retention. This strategic use of data not only enhances customer engagement but also reduces the risk of lost opportunities and borrower attrition.

Integrated recapture technology turns insights into action

Identifying high-propensity borrowers in your servicing portfolio sets the stage, but the real win comes when insights are transformed into action. By combining advanced marketing automation with intuitive digital consumer-facing tools, lenders can launch personalized, multi-channel campaigns at scale. This highly targeted outreach feels personal, even when powered by automation, as it allows you to customize programs and deliver messages that are focused and purposeful. Borrowers feel understood, engaged and motivated to take the next step.

Yet, many lenders face a common roadblock: fragmented systems and siloed data sources that stall engagement efforts. Without a seamless way to unify data and orchestrate personalized outreach, lenders risk missing the precise moments when borrowers are most likely to act.

Turning data into action and equipping borrowers with cutting-edge digital tools is how modern lenders stay ahead. Additionally, loan officers should also have access to the same digital tools and information, so they are able to engage accordingly. Automated workflows streamline the application experience, reduce friction and elevate conversion rates. The payoff is stronger customer connections and long-term retention across your portfolio.

Four pillars for successful borrower recapture

To protect servicing portfolio value and unlock lasting growth, lenders must build a borrower recapture strategy that leverages the latest digital technologies built on four essential pillars:

This modern, integrated approach helps lenders sharpen their focus on high-propensity borrowers and gives loan officers the tools they need to turn more leads into loans.