Mortgage Industry Evolution: Data, Transparency, and the Future of Lending

Highlights: 

• To combat high fallout rates, lenders must leverage strategic automation and intelligent workflows to re-engineer the loan manufacturing process. Investment in explainable AI and cloud technology, which links diverse data assets (credit, income, employment), enables faster custom model generation and more informed decision-making.
• Competition is prompting consumer reporting agencies to innovate and enhance data offerings. Furthermore, newer scoring models like VantageScore 4.0 utilize a broader dataset to responsibly expand credit access and affordability for more potential homeowners.

The mortgage industry is at a pivotal inflection point. The recent announcements around changes in credit score pricing for lenders has ignited intense conversation around pricing and process. But what I see is an opportunity for bold innovation that benefits lenders and consumers alike.

At MBA Annual 2025, I joined Clayton Collins, CEO of Housing Wire, and Justin Demola, President of Lenders One Cooperative, for a special edition of the Market Pulse podcast to discuss, “What Happens Next?” The evolving ecosystem of lending data, new scoring models, and the critical need for efficiency in loan manufacturing are top of mind for everyone. Our dialogue made one thing clear: competition, coupled with advanced data and AI, is the catalyst for a more affordable and inclusive path to homeownership.

Here are four key takeaways from our discussion about the future of lending:

4 Key Takeaways on the Future of Mortgage Lending

1. Competition Drives Innovation (and Cost Savings)

The three nationwide consumer reporting agencies stepped up to the call for competitive credit score pricing with powerful offers. For example, Equifax has enhanced its offerings to include  additional data —like providing certain income and employment data from The Work Number® database alongside every credit report, benefiting consumers and lenders alike.

2. VantageScore is the Future of Expanding Credit Access

The mortgage industry's goal is to increase homeownership and make it more affordable. Newer, innovative scoring models, like VantageScore 4.0, have the ability to unlock homeownership for additional buyers by leveraging a broader and more current dataset to provide a clearer picture of a person’s financial situation. 

3. Strategic Automation is the Secret to Lender Efficiency

High fallout rates in the current market mean lenders must re-engineer their loan manufacturing process. The "secret sauce" is simple: Buy what you need, when you need it. Through intelligent workflows and enhanced education, lenders can automate their process and wait until a loan is committed before pulling a full verification record. Companies that are succeeding are building technology and implementing best practices to streamline the flow, minimizing costly missteps.

4. The Power of Data and AI to Combat Affordability

Declining conversion rates are a major stressor, driven by macroeconomic factors like housing prices and general affordability. Through our investment in explainable AI and cloud technology, Equifax can quickly generate custom models and link all Equifax data assets (credit, income, employment, telco/utility) to make better decisions faster. More high-quality data, stronger income verification, and scores that include alternative data will absolutely help drive greater adoption, success, and better pricing for consumers, helping to qualify more people responsibly.

The road ahead is one of constant change and optimization. By focusing on competition, transparency, and data-driven intelligence, we can ensure the evolution of the mortgage industry is a win for both our partners and the millions of Americans striving for the dream of homeownership.

Listen to the Full Conversation Here.

The podcast was recorded on October 20, 2025, at MBA Annual 2025 in Las Vegas, Nevada. The conversation was hosted by Clayton Collins of Housing Wire and featured Justin Demola of Lenders One Cooperative and Joel Rickman of Equifax.