2024 Cost to Originate Study

In the past three years, loan origination costs have risen 35%, or $3,000; today, the average retail-only lender loses approximately $600 per loan.

VIEW THE STUDYDownload the 2024 Cost to Originate Study

With the major effects of COVID-19 behind us and a market that’s cooled off from the record-high origination volume and the subsequent refinance boom, lenders are now experiencing flattened revenues, increasing expenses and negative net incomes and margins. Yet no matter the market conditions, the costs associated with originating a loan remain top of mind for lenders, which want to know how to stay efficient and competitive.

The answer is a comprehensive commitment to digitization. Digital-first lenders that leverage Freddie Mac technology solutions reduce costs and cycle times, increase pull-through rates, boost incremental yearly income and offer a better borrower experience.

Explore the research findings to discover how:

• Leading institutions lean into technology solutions to mitigate costs and drive efficiencies.
• A fully digitized mortgage process is the path forward.
• Effective change management determines the pathway to adoption and optimization.

Elevate Your Impact With Loan Product Advisor^® (LPA^SM)

Lenders using LPA digital capabilities can:

Furthermore, lenders using LPA digital capabilities at high rates originate loans that are $1,500 less costly. Together, let’s bring down the cost to originate.