Mortgage Industry Trends, Opportunities, and Challenges in 2022 and Beyond

Low interest rates and a growing demand for innovative technology show a wide range of trends for the mortgage industry, which are expected to last beyond 2022.

Major Trends Impacting Mortgage Companies

The following mortgage industry trends could affect operations.

  • Lending. Mortgages are the largest lending sector in the United States.
  • Low mortgage rates. Mortgage rates are expected to continue at low levels relative to past years despite inflation pressure.
  • Loan volumes. Mortgage loan volumes and refinances have waned with reduced profitability for mortgage banking companies.
  • Independent mortgage businesses (IMB). IMBs provide almost 50% of domestic loan originations, some of which went public via initial public offerings (IPOs) and special purpose acquisition company (SPAC) financings.
  • Technology and security. An increased need to incorporate technology and data analysis into mortgage company operations, delivery channels, and platforms have the potential to help businesses reduce cybersecurity and technology risks. Digitizing mortgage processes can also help reduce operation costs and improve customer experience.

Future Opportunities and Challenges

Mortgage companies are likely to face several opportunities over the next two to three years, along with certain challenges and opportunities.


  • Lending products. Mortgage companies could benefit from offering complimentary lending products or consolidating mortgage production business lines. Companies could consider assessing product risk and related systems, internal controls, and compliance regulations.
  • Demographics. Millennials are entering prime home-buying years. Attracting this age group could also help boost mortgage production.
  • Strategic Investment. IMBs could seek to obtain a more stable funding structure by purchasing a bank franchise to leverage a deposit franchise. Investment in a mortgage REIT provides certain unique opportunities for IMBs, among them being an outlet for production.
  • Real Estate Investment Trusts (REITs). Mortgage companies could consider starting or purchasing a mortgage REIT as an outlet for production.


  • Technology. Increased demand for innovative technology could result in IMB’s growing reliance on third-party technology service providers for delivery of loan products. Consider conducting technology and system risk assessments, as well as more system and organization control (SOC) reports, which can provide insight on the effectiveness of your organization’s internal controls and safeguards.
  • Internal controls. There’s a need to elevate internal controls and risk assessments for newly minted public mortgage companies. Compliance of Section 404 of the Sarbanes-Oxley Act of 2002, which addresses internal controls, is essential for public companies and companies planning to go public.
  • Rising rates. Navigating rising rates alongside excess capacity in the market may prove difficult. A focus on cash management and cost management to mitigate the impacts of rate increase will be critical.

We’re Here to Help

If you have any questions about challenges or opportunities for your business, contact your Moss Adams professional. You can also visit our Mortgage Companies page for additional resources and insight.

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