Brokers must be ready to battle to regain former clients
Mortgage rates have been a bit of a rollercoaster so far in 2026, and most mortgage brokers want off of that ride, sooner rather than later.
After rates dived into the high-5s early in the year, they have since rebounded into the mid-6s. With the 10-year Treasury rate down for the second day in a row, most expect rates to progress downward as the week continues.
The fluctuation has created a bit of concern in the market, which seemed poised for a very strong spring buying season. In addition, rates were getting to the point where more current homeowners would start considering refinancing existing mortgage loans to tap into built-up equity.
While some of those refinances may have moved to the back burner with the recent rate increase, many people in the mortgage industry still expect rates to resume their downward trajectory in the second half of 2026, which could open the door for brokers to get loan recaptures.
One mortgage executive is also hopeful that the second half of the year will allow for a burst of refinances, and he cautions brokers to be ready to move when that time comes.
Desmond P. Smith (pictured top), EVP and chief growth officer of UWM, said the key is to make sure that brokers are on the minds of their former customers to help with the recapture efforts.
“I think we’ll get rates to come down at some point,” Smith told Mortgage Professional America. “We want to make sure that brokers are front of mind for their past clients when it comes time to refinance. That is probably one of the top things that I have on my mind.”
Connecting with former customers
Smith notes that many brokers are already really good at remaining connected to former customers, which gives them a leg up on the competition when it’s time for that customer to purchase a new home or refinance their current one.
“How do we help brokers stay front of mind with their past clients?” Smith said. “Some do an unbelievable job. They got their once-a-quarter reach-outs, the birthdays, and the anniversaries. I think rates in the second half of this year are going to come down. That's going to be a huge opportunity for our industry. I mean, there are trillions of dollars of mortgages with rates north of 6.5%.”
Obviously, brokers aren’t going to be the only ones after these customers. Servicers are much better prepared to refinance customers than they were during the last major refinancing wave in 2020 and 2021. Retail banks, which are looking to get a bigger foothold in mortgage lending thanks to new proposed rules, are also going to be looking to scoop up loans.
That’s why the top focus for Smith and UWM is to make sure brokers are ready to be on the offensive when rates drop, rather than reacting to what happens. Part of that starts with worrying about the things that can be controlled.
“I want to make sure that brokers get not just their fair share, but more than their fair share,” he said. “I think about controlling your controllable. I try not to worry about things we can't control, like interest rates and housing inventory. I tell people to stay focused on what we can, which is that people are buying homes each and every single day.
“People are refinancing each and every day, cash-out refinances for different reasons. I think as much as we look forward and say, ‘Hey, hopefully rates are coming down,’ it doesn't mean that there's not a great opportunity right now that we want to make sure we're staying focused on.”
Positivity on the broker side
As UWM prepares for its annual event, UWM Live, coming May 13-14 on the company’s Pontiac, Michigan campus, Smith said the momentum for independent brokers has never been greater.
“We’ve got some really fantastic speakers for UWM Live,” he said. “We have four or five people who are LOs, who are brokers themselves, and we're going to be sharing their success stories and how they became successful. I think there's just so much positivity on the broker side.”
Once making up just a single-digit percentage of the mortgage market, brokers are closing in on 30% of the market. Smith wants to see that total surpass the 50% mark, which would make brokers the majority in the space.
“Brokers are nearly 30% market share,” Smith said. “That's great, but we're like, ‘No, we should be 50.1%.’ We want to keep pushing and keep telling that story. It’s a better experience. It's cheaper, and it truly is, a win-win for an LO, for a broker shop, for a realtor, a builder, and the end consumer. It’s a win all the way around.”
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