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51 November 2025 November 2025 » S I D E B A R W I T H S T A N affordability entered a new normal that the industry and consumers will need to adapt to? Middleman: Well, according to Warren Buffett in the newspaper recent- ly, interest rates will not get low enough to increase affordability. One of the things that is true is that, as interest rates go low- er, prices rise. They will, in my opinion, offset one another, even though there may be an opportunity to have lower in- terest rates to buy a home. It doesn't mean the price is going to be the same. The two pieces—the interest rate and the price of the home—come into play. There's no reason to believe that we are going to have a sudden oversupply of housing, driving housing prices down. Property prices will rise, and afford- ability will not change. Or, in fact, it may get a little worse. Q: In September, you noted that data and AI were improving the speed and quality of servicing. What's your outlook on how technology will redefine borrower relationships in the next few years? Middleman: It could have an enormous impact. The speed at which data moves, access to that data, and the ability to communicate the meaning of that data all should improve dramatical- ly in 2026. All that can have a big impact on the normal service in question. So, what has been a somewhat tedious process to get rather mundane information should be easier and more effective, and I think that we'll be able to communicate that information to the greater satisfaction of the customer. Exceptions will still be exceptions, and the problems that fall in the ex- ception bucket will become more and more readily defined, but even they will improve as we wind through the year and into the following year. I'm very op- timistic about the customer experience and our ability to provide outstanding service to the consumer. Q: With 2026 shaping up to be another politically charged year, how do you think potential policy shifts, whether on housing, regulation, or fiscal policy, could impact the mortgage market and consumer confidence? Middleman: The deregulation that has come out of this administration has bolstered the industry, as well as other industries. We should have a couple more years of that. Whether or not the current administration is able to control all the houses of Congress and manage legislation is a horse of a different color. I'm not sure what that outcome is going to look like, but the more control a sin- gle party has, the more of their agenda they're able to put forward. If they can continue the control of the two houses of Congress, the likelihood of continued deregulation and pro-business environ- ment should continue. Q: You've talked before about staying in the middle of the fairway and avoiding overexposure to risk. As we head into what could be a transitional economic period, where do you see the biggest risk and opportunities for lenders? Middleman: I don't think this is a year that the risk will be in the forefront, but I think the seeds of malcontent will be planted this year. The issues that'll arise in future years will be created in a more meaning- ful way this year. This means that prod- ucts like CLOs, second mortgages, and non-QM—products which are subject to the private securitization market—are more likely to start to face a bout of lack of liquidity as we enter the second half of 2027 and into 2028. I have some concerns about the broader market liquidity around some of these products that are dependent upon private-label securitization. Q: Non-bank lenders like Freedom Mortgage have continued to grow their footprint. How do you see the competitive landscape evolving in 2026 and beyond? Middleman: That depends a little bit on the progress the administration makes in the areas of supporting the banks. If the banks remain on the trail they are on, I think you'll see more scale in the non-banks, and you'll see leaders in the non-bank sector start to emerge in scaled operations. The changes in technology and the ease of regulatory environment should lead itself to the de- velopment of scale, and I would expect the largest scaled competitors to be the most successful. Q: If you had to sum up one key lesson for the mortgage industry from 2025, what would it be? Middleman: Wake up, we have to pay attention! We have been pressing the snooze alarm for a while. I think we're going to have some lower interest rates and some activities. There's going to be opportunities to do business over the next year—I believe as much as a 20% increase over volumes in 2025. So, I would say that the alarm went off, and it's time to wake up and get back to work. Property prices will rise, and affordability will not change. Or, in fact, it may get a little worse."