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Challenges and opportunities: the 2025 housing market presents a unique moment for mortgage originators where those prepared to make the most of it could gain a significant competitive advantage. Why?
While interest rates remain elevated, the Trump administration, now entering its second term, has indicated that boosting the struggling housing market is a priority. If the White House takes decisive action, policy changes affecting the U.S. housing market could create opportunities for mortgage originators. Now is the time to refine your strategies, expand your offerings, and position yourself for growth, not just within the traditional mortgage space, but also within growing areas such as the non-qualified mortgage (non-QM) market, as increased activity could be on the horizon for the housing sector, especially in the upcoming spring homebuying season.
Housing market pressures and the expanding role of non-QM
With conventional rates hovering around 7% and refinancing opportunities drying up, buyers are facing limited inventory; flexibility and adaptability will be key traits that define winners in today’s market. We’ve already seen a few initial steps forward from the Trump administration: proposed policies to ease zoning restrictions, support new construction, and cut regulatory hurdles, efforts that could support new development and expand homebuying opportunities.
Meanwhile, as the broader mortgage market stabilizes, the non-QM sector continues to grow, driven by the need for innovative financing solutions for self-employed professionals and other borrowers who don’t fit traditional lending criteria. With small business ownership and the gig economy expanding, demand for non-QM products is rising, offering mortgage originators an opportunity to expand their client reach and serve an underserved yet financially stable borrower base. If you’re not already up to speed on Non-QM and the new doors it can open for revenue, now is the time to catch up.
Strategic actions for success
Navigating the 2025 housing market requires a proactive approach. Originators who have already embraced out-of-the-box mortgage solutions are seeing success, expanding their client base, and differentiating themselves from competitors. Here are some of the best ways I am seeing top originators turn current challenges into opportunities for lasting momentum:
- Stay informed on market trends and policy developments to navigate opportunities effectively and update your clients regularly through various touch points.
- Engage with your community by attending industry webinars and events to stay connected and up to date.
- Expand your professional network by building relationships with referral partners and fellow originators.
- Stay proactive by participating in trainings and continuing your education.
- Educate your network and client base by offering insights into how new solutions beyond traditional lending can serve as alternative solutions for those that are unaware.
- Partner with a trusted Account Executive who has a proven track record in the non-QM space and can equip you with the knowledge to stay ahead of the curve.
- Highlight your non-QM experience and broader client success through marketing and sales efforts.
- Use your social media accounts to amplify your expertise, market your services, and engage with your network.
Mortgage originators who stay informed, build strong industry connections, and expand their product offerings will be best positioned for growth. More importantly, during times of uncertainty people will be more inclined to look for expert voices and engage with you which can lead to lasting, new relationships you didn’t know were right under your nose. With the right execution, 2025 could be a pivotal year for originators as the broader mortgage industry shifts under a changing macroeconomic environment.
Tom Hutchens is the Executive Vice President of Production for Angel Oak Mortgage Solutions.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: zeb@hwmedia.com.
