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Lenders push down mortgage origination costs amid stubborn rates

Mortgage News Daily notes origination costs are around $11k per loan, and lenders are aiming to improve pull-through to offset weak homebuying seasonality.

Reported · Written up by our desk · Mortgages

Mortgage News Daily said lenders and vendors are adjusting to a lackluster homebuying season, stubborn mortgage rates, and origination costs that are roughly $11,000 per loan as the market moves through the third quarter of 2026.

The outlet added that lenders are trying to lower these costs by improving pull-through, while also tracking borrower and household trends, including demographics such as people in their 20s and rental market dynamics.

Mortgage News Daily also highlighted concerns about affordability pressure that does not end at closing, pointing to repurchase risk when borrowers are stretched and have less room for errors in their files.

Finally, it referenced tools aimed at improving verification and settlement processes, citing that some lenders see up to 50 percent cost savings on income, employment, and asset checks, while longer cycle times can weigh on pull-through, productivity, and profitability.

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