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Mortgage lenders face higher cost per funded loan despite tech spending
Mortgage Bankers Association data shows cost per funded loan rose 57% over 10 years to $11,094 in 2025, with volume and technology investment not offsetting the increase.
Mortgage lenders’ cost to originate business has climbed sharply even as the industry increased technology spending, according to data cited by HousingWire.
The Mortgage Bankers Association shows cost per funded loan rose 57% over 10 years, reaching $11,094 in 2025. HousingWire notes the cost was $3,685 per funded loan in 2009, and also cites an increase from $7,535 in 2019 to $8,664 in 2021.
HousingWire points out the pattern does not align neatly with a simple volume math explanation. In 2019, the industry funded $2.25 trillion at $7,535 per loan, while in 2025 it funded $2.0 trillion at $11,094 per loan, suggesting more is driving costs than units of origination alone.
The piece argues that workflow structure and staffing responsibilities have not kept pace with customer expectations. HousingWire says many mortgage companies built processes around handoffs and paper workflows, and responded to changing expectations by stacking multiple, narrowly focused technology tools without redesigning the operating model and responsibilities behind the process.