Mortgage Lending Strategy: Own the Customer Relationship
By: David Brennan, Strategic Planning & Development
As we move deeper into the strategic planning and budget season for 2026, many community banks and credit unions are asking a similar question, one that often repeats itself; What should we do with our residential mortgage business line? Typical thoughts that occur include:
We know we have to offer the product, but we struggle to achieve sustainable volume.
Non-bank lenders own this market; it’s hard to compete on price alone.
How do I measure efficiency and profitability?
Is it a commodity business or a customer acquisition and relationship business?
But what if it's the single best opportunity you have for long-term customer relationship building?
Where There are Challenges, There are Opportunities
Stop looking at the volume-driven mortgage company down the street. Instead, ask: How are we different in terms of how we view our customers and how do our customers view us? Your answer is your identity: a trusted, full-service financial provider focused on building strong, lifetime relationships. The mortgage is not a commodity; it's the gateway to that relationship.
What do we offer as a major differentiator that reflects our strengths and how we value the customer?
Applying for a mortgage can be the result of a stressful time, exciting opportunity, or finally reaching the dream of homeownership. Can we tailor the mortgage process to reflect our values with our existing customers and create a new customer experience that offers value for all customers? Is there a better opportunity to introduce ourselves to new customers?
We can immediately rule out the commodity viewpoint. We want to build long-term relationships with customers. What better way to do this than with the mortgage process? The mortgage process offers the opportunity to obtain a complete financial picture of the customer. If we do this right, we know family and friends will hear about it.
Yet, we need to make it a profitable and meaningful business line for our institution. Before we hire MLO’s, back office and loan servicing staff, try to figure out how and what to pay them, we need a plan which reflects our strengths and what makes us different. How is the mortgage process viewed from the entire enterprise and value perspective? Who owns the mortgage customer once the loan is closed? The plan should be our plan, tailored to our strengths and not about trying to be the mortgage competitor down the street. The mortgage company only has to concentrate on one product, the mortgage.
This plan should have short-, medium- and long-term components, with realistic expectations. Then you can decide what it will take to build the plan. Think about these questions:
What is the most efficient and effective way of building out a process which always keeps the customer in the center?
What origination, processing and loan servicing technology will be required to meet our needs and goals?
How to be sure we are maximizing the use of our current mortgage technology?
It is not an easy business. If it was, many institutions would not be asking these same questions. The opportunities the mortgage product offers are significant in obtaining the goal of being the most trusted financial advisor. SCA will collaborate with you to build a strategic roadmap—one that is tailored to your strengths, defines your culture, and ensures profitable execution. Let us help you make 2026 the year your mortgage business stops being a question and starts being a competitive advantage.
