Today’s Biggest Market Challenges - According to You

Highlights: 

• Market leaders report facing persistent challenges in 2026, including mortgage affordability, rising auto and mortgage delinquencies, and a strong push toward precision in credit risk assessment.

• Top strategic priorities for the coming year focus on digital transformation, with an emphasis on improving digital lending experiences and exploring AI adoption for credit assessment and fraud prevention.

As 2025 came to a close, leaders and experts from across the mortgage, retail, and technology sectors joined us in Q4 over three Market Pulse webinars and shared what they’re seeing in the market as well as what they expect in 2026. These participants represent a wide range of industries and roles, yet many of their concerns are strikingly similar. Through live polls and open discussion, they helped paint a clear picture of the pressures, priorities, and opportunities shaping their industries.

October: Mortgage Leaders Focus on Affordability and Accuracy

During our October webinar, Joel Rickman, GM and SVP of U.S. Mortgage and Verification Services at Equifax, and Tony Hutchinson, EVP and Head of Public Affairs at VantageScore, explored the forces reshaping today’s housing market. The audience — made up of mortgage professionals, credit experts, and financial leaders — made one thing clear: Affordability remains the biggest obstacle for homebuyers.

Nearly 46% said high home prices and low inventory are the primary drivers of affordability challenges, while another 32% pointed to persistently high mortgage rates. Only a small share highlighted income constraints or rising taxes and insurance. For many lenders, the bigger worry is that the basic structure of the market is still working against borrowers.

When it comes to evaluating credit score solutions, audience members emphasized the need for tools that accurately reflect credit risk. Predictiveness and risk accuracy dominated the vote at 60.7%, far outweighing concerns over cost or inclusivity. This response shows a strong push toward precision as lenders try to navigate tight margins and rising credit risk.

Looking ahead, opinions are split on which credit score model will dominate in 2026. Classic FICO (41.3%) and VantageScore 4.0 (39.7%) were nearly tied, suggesting ongoing debate and transition within the industry.

Across all responses, the major pain points were familiar: borrower qualification, affordability challenges, interest rates, economic uncertainty, credit costs, turnover, and home prices.

November: Retail and Consumer Lending Leaders Prepare for Shifting Holiday Behavior

In November, our discussion turned to the holiday shopping season and broader consumer credit trends. More than 60% of respondents said rising delinquencies in auto and mortgage were their biggest credit challenge going into year-end, showing growing concern about household stress and repayment capacity.

When asked which category might see the greatest change in consumer spending, the audience split almost evenly between retail (36.2%) and travel and leisure (34.7%) — a sign that many expect shoppers to continue spending but with different priorities than in previous years.

December: AI’s Expanding Influence — Though Uncertainty Remains

Our final webinar of the year explored the role of AI in risk management and digital transformation. For 2026, respondents named improving digital lending experiences (30.1%) as their top strategic priority, followed by market expansion and stronger fraud and identity tools.

Yet when it comes to AI adoption, many organizations are still finding their footing. About 33% said they are not currently using AI in risk management, while another 25.3% reported they are unsure how AI is being used. Even so, a growing share is exploring AI for credit assessment, operations, and fraud prevention.

What These Insights Tell Us

Across all three webinars, one major theme stands out: Leaders are dealing with rapid change, rising risk, and a need for smarter tools. Whether navigating mortgage affordability, consumer behavior, or new technologies, our audience continues to share thoughtful, forward-looking insights that help shape these conversations.

As we move into 2026 and beyond, these perspectives will remain crucial for understanding both marketplace pressures and the innovations that will drive the next phase of growth.

Keep Your Business Goals Within Sight

We hope you will join us for our Market Pulse webinars. To ask questions in real time and gain deeper insights before anyone else, you have to be there. Don’t miss it! Stay tuned to register, plus find our monthly Small Business Insights, National Consumer Credit Trends reports, the Market Pulse podcast, and more at our Market Pulse hub.