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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 40 September 2025 S P O N S O R E D C O N T E N T WHY CUSTOMER RETENTION IS THE MOST URGENT PRIORITY IN A SHIFTING MORTGAGE MARKET B y DAV I D D O Y L E I n what amounts to perhaps the mortgage industry's biggest surprise this year, the mortgage market in 2025 has become reasonably predictable. Mortgage rates are elevated and remain so. Refinance activity is dearth. Purchase volume is suppressed, with an affordability crisis worsening. And conflict continues between the Trump administration and the Federal Reserve regarding lowering rates. A few other things haven't changed. Borrower expectations continue to rise, driven by the increasingly digital life they lead. Lenders and servicers are pressed to invest in improved technology and digital service delivery, raising the specter of cost increases against sluggish revenue growth. How can lenders and servicers recoup these costs and increase revenue in this environment? They need look no further than their own servicing portfolio, which is, for most companies, an under-exploited source of originations and revenue growth. According to the Mortgage Bankers Association, the industry average refi- nance retention rate sits at just 15%. That means an astounding 85% of customers leave when they refinance. Purchase retention is even worse. That's a massive leak—and a sizable opportunity for servicers. After all, if they've done a good job with servicing, they are in the pole position with the customer, having earned customer trust (and their data). It's clear there's room for servicers to improve retention, so we're sharing an approach that Sagent sees among ser- vicers who are making headway: they're leveraging technology to offer a modern, compliant, and connected experience that turns customer trust into customer loyalty. Let's take a look. Why Retention Is Now a Servicing Issue H istorically, retention has been viewed as a sales or origination function. But the truth is, servicing is the single most consistent and enduring touchpoint homeowners have with a lender. That makes it the most powerful engine for retention—if the strategy, technology, and people processes align to deliver an exquisite borrower experience. Homeowners don't want to start over every time they consider refi- nancing or buying again. If you've built trust through years of timely payments, hardship support, and solid commu- nication, that trust should convert into lifetime value. Rates Will Eventually Fall. Are You Ready to Retain? I t's hard to predict how or when rates will drop, but we do know two key things. First, the Trump administration wants the Fed to lower rates and can ap- point a new Fed Chair when the current Fed Chair's term expires in May 2026. Second, if jobs growth and economy soften and inflation continues to moder- ate, current Fed leadership may resume the rate cuts they began last year. D A V I D D O Y L E leads Sagent's Sales and Business Development programs. He drives Sagent's efforts to engage with new cus- tomers and strategic partners, contributing to revenue growth and the modernization of Sagent's system. David joined Sagent in 2020 after a 24-year career at Bank of America where he led several business divisions and large, transformative programs in the Consumer Lending space (mortgage, home equity, and auto lending). His background and experiences leading marketing, sales, operations, and support functions gave him a diverse skill set for business-to-business and business-to-con- sumer leadership roles.