The Acquisition Trap

Lenders are trapped in a cycle of high-cost acquisition and rapid churn. In 2025, the cost to originate a single loan often exceeds $10,000. Despite this massive investment, the industry effectively abandons the customer the moment the loan closes.

Lenders currently lose four out of every five customers to competitors when they eventually transact again. This churn is staggering because acquiring a new customer is 5 to 25 times more expensive than retaining an existing one.

The Retention Gap

While other service-based industries have mastered "stickiness," mortgage lending remains a transactional outlier.

Wireless Carriers
90%
Insurance Providers
84%
Retail Banking
75%
Mortgage Lending
~18%

The 5% Rule

Research suggests that increasing customer retention by just 5% can increase overall profits by 25% to 95%.

The New Mandate

The servicing portfolio is the lender's most valuable, yet most underutilized asset. The solution is a transition from a provider of a commodity (debt) to a manager of an asset (the home).