Data-driven strategies are helping lenders unlock portfolio value, improve retention, and strengthen borrower relationships
June 26, 2025 — DENVER, Colo. — Once viewed as a back-office function focused on cost containment, mortgage servicing is now a strategic lever for growth, borrower retention, and operational efficiency, according to STRATMOR Group Senior Partner Michael Grad in the advisory firm’s latest Insights Report.
In his article “Checkmate or Checkpoint? Rethinking the Role of Mortgage Servicing,” Grad outlines how forward-thinking lenders are responding to today’s high-interest, purchase-driven market by transforming servicing into a competitive asset. He emphasizes the need for an integrated, data-driven approach to navigate mounting regulatory scrutiny, increasing borrower expectations for digital service, and the rising prominence of subservicing partnerships.
“In 2025, the industry is firmly in a purchase-driven market, with higher interest rates slowing origination volumes and compressing margins across the board,” Grad says. “For banks and mortgage lenders, this market shift places increased importance on servicing portfolios.”
In his article, Grad explores how lenders can:
- Maximize the value of existing customers in a post-refinance environment
- Mitigate the impact of renewed regulatory scrutiny on borrower communication practices
- Improve borrower engagement using servicing data
- Align servicing performance with broader business goals
- Strengthen third-party subservicing relationships
- Overcome challenges like margin pressure, data fragmentation, and technology gaps
Also featured in this month’s report is “How ‘Peak Polling’ of Mortgage Borrowers Creates Costly Blind Spots,” an article by STRATMOR Customer Experience Director Mike Seminari. The article warns against relying solely on feedback from the happiest or most vocal borrowers, which can mask deeper servicing issues and missed opportunities for improving borrower experience and retention.
Seminari recommends more representative, ongoing borrower feedback—particularly within servicing—to identify friction points earlier, resolve issues more effectively, and build long-term trust.
Both articles highlight a key theme: servicing is no longer just about managing loans—it’s about managing relationships. Lenders who embrace that shift will be better positioned to compete and thrive in today’s market.
Click here to read the June 2025 edition of STRATMOR’s Insights Report.
About STRATMOR Group
STRATMOR Group is a leading mortgage industry advisory firm that provides a range of programs and services for senior industry executives. STRATMOR serves more than 250 companies annually, recommending strategies that increase growth and improve profitability in sales, marketing, technology, operations and mergers and acquisitions. The company leverages comprehensive, proprietary data and key insights gained through extensive experience in the mortgage industry. STRATMOR is well known for its financial models and its collaboration with the Mortgage Bankers Association in the PGR: MBA and STRATMOR Peer Group Roundtables Program. Find out more about STRATMOR on its website at www.stratmorgroup.com.