UMortgage executive reveals strategies for navigating today’s high-rate mortgage market
Lenders and brokers are having to utilize all available tools to assist clients through the current challenging environment. This includes new technology that can help streamline processes, making the mortgage process easier and less expensive.
One of the challenges currently being faced is uneven markets in many major metropolitan areas. Affordability remains a challenge nationwide, but depending on where someone is buying a house, they could expect either seller concessions or to be up against multiple offers.
Tyler Hodgson (pictured top), executive vice president of growth at UMortgage, is helping customers try to navigate this difficult situation.
“Rates are one piece, but really, the affordability crisis has continued because home prices are still really high,” Hodgson told Mortgage Professional America. “They haven't come down for the most part, and incomes haven't moved up as much as well. Rates doubled in a very short period of time, which caused monthly payments to go up, but people's income didn't increase as much.”
One piece of good news lately has been an increase in housing inventory. However, some markets are still experiencing a shortage of available homes. Sometimes, it differs from one neighborhood to the next.
“We do a lot of business in Texas,” Hodgson said. “In some of our Texas markets, we're definitely seeing inventories increasing. The spring and summer haven't been as hot as maybe we expected. There are definitely different markets and sub-markets where buyers are getting relief with good price drops, or being able to negotiate seller credits in those sub-markets where homes are sitting on the market a little longer.
“Sometimes the home is on the market for three days, and it's still a multiple offer situation, and the buyers have to overbid. And then other times you see a house on the market for three weeks, six weeks or nine weeks, and now suddenly, you're getting a $20,000 or $30,000 price reduction and getting a great deal on it.”
Counting on wholesale lenders
To address some of the challenges in the mortgage market, companies are embracing new technologies, including artificial intelligence. In addition, the government has made recent changes that will allow cryptocurrency and a different credit scoring system, VantageScore 4.0, to be accepted in the mortgage process.
For mortgage brokers, they are counting on wholesale lenders to roll out this new technology so they can benefit customers who are still willing to go forward in the current market.
“As a broker, we're a lot more focused on the sales side,” Hodgson said. “We’re obtaining clients, and then we're placing that client with a wholesale lender. So, it's really important that our wholesale lenders are being as efficient as possible, and they're leveraging AI for technology of underwriting, closing, servicing and secondary market.
“We need our wholesale lenders adopting VantageScore 4.0 and cryptocurrency, and they have to be doing those things quickly, because we're dependent on them for their performance in those areas.”
While those lenders take care of things on the back end, Hodgson can focus on the customer to make sure their experience is good.
“I don't need to build out some awesome AI underwriting protocol, because I'm not the underwriter,” he said. “I don't even have an underwriting department. I need to focus more on the front end: the application, sales process, generating leads, finding leads, referrals, database management, repeat clients and things like that.”
Building the broker-lender relationship
Hodgson knows that for everyone to be successful, a strong relationship must exist between the lender, the broker, and the end customer.
“Maintaining that partnership between brokers and the wholesale lenders, we're betting on the fact that they'll be able to advance their technology more quickly than their retail counterparts,” he said. “And at the same time, we still have to be figuring out how we can best utilize technology and adopt different changes as they come from the origination side.”
Brokers have to be aware of the competition in the market, whether they’re working on the wholesale side or the retail side. He noted Rocket’s acquisitions of Redfin and Mr. Cooper as ways they’re trying to expand their presence in the mortgage market. He knows that others must also continue to work to grow.
Stella Khavo (Edge Home Finance), a loan officer who immigrated from Vietnam in 2022, has become a standout broker by supporting clients, many of whom are fellow immigrants.https://t.co/ItXptngUsa
— Mortgage Professional America Magazine (@MPAMagazineUS) July 15, 2025
“Whether you're a broker, a wholesale lender, a retail lender or a servicer, there's always competition out there, but there's always opportunity in the market as well,” Hodgson said. “We’re competing in the areas where we can. I know that my AI and technology budget is nowhere near on par with a Rocket Mortgage or a UWM.
“It's not like companies have millions of dollars ready to invest in technology and invest in their growth. Even those who do have cash surplus are a little more cautious about it, because we just don't know how long this current environment is going to last.”
His advice to brokers is to attend events, not only to network with fellow industry members, but also to stay up-to-date with the latest technology, which will help them succeed.
“Whether you're a broker, retail or wholesale, understand where you fit in the marketplace,” he said. “Continue to adapt and understand. Be in tune with everything that's going on, so that you can adapt to whatever is most applicable to you. There will be an opportunity for everyone. Those who are out there doing the things and staying ahead of the curve can win no matter what channel you're in.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
