Improved financial results starts with recapturing customers

Driving improved financial results starts with recapturing your existing customers

By: Tim Bowler, President of ICE Mortgage Technology

Lenders are always seeking ways to protect and grow their customer base before it is absorbed by competitors. The good news is that you don't need to acquire a servicer or listing site to grow your business and drive improved financial results. Rather, your success hinges on your ability to quickly capture repeat clients (i.e. those you have helped before) and win new business when market fluctuations drive housing demand. Having the right set of technology-based tools in place to spot and convert high-propensity borrowers combined with the ability to act fast can help you earn lifetime customer loyalty before the competition beats you to it.

Capitalizing on homeowners' record equity

Homeowners are sitting on significant amounts of tappable equity, offering a prime opportunity for lenders to retain hard-won customer relationships and earn new ones along the way. The 2025 ICE Borrower Insights Survey shows that home equity financing is heating up, with about a quarter of respondents indicating that they are thinking about taking out a home equity loan or home equity line of credit (HELOC) in the next year. What's more, the September 2025 ICE Mortgage Monitor reports that homeowners withdrew $52B in equity via second-lien home equity loan products and cash-out refinances in Q2 2025, marking the largest single quarter of equity extraction in nearly three years.

With the June 2025 ICE Mortgage Monitor identifying 48 million mortgage holders having some level of tappable equity, and the average homeowner holding $212,000 available to borrow against, home equity loans and HELOCs present an immediate opportunity. Plus, HELOC rates have continued to drop in recent quarters, making it more appealing for homeowners to tap into their equity.

Navigating the next refinance boom

With the recent federal funds rate cut and interest rates expected to decrease, refinance demand will naturally increase — creating an opening for retaining your current customers and earning the business of new ones with an opportunity to lower their monthly payments. Today, only a small percentage of customers are successfully recaptured during refinances, showing just how much room exists to grow retention.
According to the ICE Borrower Insights Survey, two-thirds of borrowers indicated they were very or extremely likely to return to their most recent lender for their next mortgage. However, less than 1 in 4 refinancing borrowers were retained in Q1 2025 according to the June 2025 ICE Mortgage Monitor. This included 23% of cash-out and 26% of rate-and-term refinancers.

The data makes it clear — without proactive recapture strategies in place to safeguard business, lenders risk missing out when demand spikes.

Preparing for pent up housing demand

Beyond refinancing and home equity loans, home purchases will also increase as affordability improves. Those who are actively engaged and build strong relationships with their borrowers will be more likely to generate repeat business when their customers need a new mortgage. These shifting market dynamics present both a critical opportunity and an urgent challenge.

Many organizations are recognizing that technology deficits limit their ability to compete in this fast-moving environment. Fragmented systems and data sources prevent them from engaging customers at scale with personalized communications and timely offers. With competition intensifying and rate fluctuations already here, both lenders and servicers need to consider fine-tuning their customer retention and recapture strategies with data-driven digital engagement to protect their portfolios and fuel long-term growth.

What can you do to improve retention and recapture?

Timing, proactivity and personalization are key to improving retention and recapture. Meeting borrowers where they are and addressing their needs before they even consider looking elsewhere is essential for building a successful retention and recapture strategy that spans the entire loan lifecycle. Here are four effective strategies to consider:

• Leverage data analytics for targeted insights: Analyze borrower data alongside public records and property trends to gain insights into loan-level incentives and behaviors, opportunities for engagement and identify borrowers who are likely to refinance or take advantage of their home equity.

• Focus on personalized, timely engagement: Borrowers expect tailored experiences that speak directly to their financial goals and circumstances. By using data to deliver precise, relevant marketing at the right time, lenders can foster trust, build long-term relationships and create loyal customers.

• Streamline the borrower journey: Digital tools that simplify processes — whether applying for a loan, monitoring equity status or exploring refinancing scenarios — help borrowers feel supported. Providing seamless, intuitive experiences across devices helps deliver a consistent touchpoint throughout their financial journey.

• Take a "borrower for life" approach: Whether you're a lender or a servicer, you can create lasting relationships that drive repeat business and referrals by proactively engaging borrowers with ongoing support and value-added insights. Automating this type of engagement allows you to build borrower loyalty without more work required from your team.

The bottom line? Retention and recapture are all about meeting borrowers' needs with precision and care. If you aren't already leveraging a mortgage platform that connects your data and workflows across the entire loan lifecycle, now is the time to take action. By utilizing the right tools that allow you to drive data-driven insights, personalize and automate engagement and create a borrower-focused mindset, you can position your business to enhance customer loyalty and stay ahead in a competitive market.

Article Meta Description: Learn how to protect and grow your mortgage customer base in a consolidating market. Discover expert strategies for retention and recapture.