BrokerVA
BrokerVA Team · September 14, 2026

Technology & LOS Costs: What a Fragmented Tech Stack Actually Costs You

Technology & LOS Costs: What the Data Says About a Growing Tech Stack

Technology expense per loan has risen from 2% to 4% over three years, according to Freddie Mac's 2024 Cost to Originate Study, and lenders told Freddie Mac that vendor costs keep climbing. Here is what the research says about technology cost, where it hides, and what to do about it. It's part of our cost to originate guide.

Why Doesn't Technology Show Up as Its Own Line Item?

Technology cost is absorbed into the broader production expense categories alongside staffing, vendor fees, and overhead, which makes it hard to isolate in most reporting. MBA's definition of production expenses covers commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations, with no separate technology line. That doesn't make the cost less real. It shows up indirectly: in license and seat fees, in staff time lost to system friction, and in errors when data doesn't move cleanly between systems.

What Does the Research Say About Technology Cost?

Freddie Mac's study names a growing technology stack as one of four reasons costs rose, alongside inflation, a purchase-heavy mix, and lower volume. It reports that technology-related expenses per loan rose from 2% to 4% over three years. Lenders interviewed said vendor costs per seat or application have been increasing, and that in third-party solutions they have roughly doubled in a short time.

The study also found that two of the top three tactics lenders use to control costs involve expanding technology. So lenders are spending on technology to control cost while technology spend itself is rising. See Freddie Mac's Cost to Originate Study, Explained.

What Does Technology Actually Save?

Less than most people expect, in measured terms. Surveyed lenders believe a fully digital process could cut cost per loan by as much as 40%. Freddie Mac's own estimates are far smaller, and its comparison of heavy and light users of its tools shows a difference of about $1,500 per loan in 2024 and about $1,700 in its 2025 update. Freddie Mac sells those tools. And its conclusion is that technology works best as a strategic enabler alongside changes in process and staffing, not as a standalone fix. See Does Digitization Really Cut Mortgage Origination Cost?.

What Does "Fragmented" Mean in Practice?

This is our description, not a finding. A fragmented stack is what happens when technology grows by accretion rather than design: a new LOS adopted here, a compliance overlay added there, a borrower portal from one vendor, an e-closing tool from another. Each solved a specific problem. If they weren't built to work together, staff end up manually bridging the gaps those systems were supposed to close. We don't have a verified figure for what that costs, and we'd rather say so than invent one. The way to find yours is to measure it. See How to Measure How Much Time Your Team Spends on Admin Work.

Does Reducing This Cost Always Mean a Platform Migration?

Not necessarily. Consolidating a stack is one path, but it carries migration risk, retraining time, and upfront cost, so it deserves a careful look before you commit. A more immediate lever is how work is staffed: role-specific support that works inside the systems you already have can absorb some of the friction, without a technology rebuild. The two aren't mutually exclusive, and the right mix depends on your operation.

How Does BrokerVA Work Inside Your Existing Systems?

BrokerVA's goal is to lower your cost to originate. Our specialists work in the systems and lender portals you already use. Our Setup role registers loans through lender portals and transfers loan data between systems, and our Post-Closing role splits, indexes, renames, and uploads documents within internal systems and lender portals. We may also be able to tailor roles to your business.

When a client starts with us, a dedicated Coach spends a 6-week implementation period learning your processes, workflows, SOPs, and expectations, which includes how your systems are set up, and support continues through ongoing coaching and regular check-ins. Pricing is customized to your volume and the roles you need, and we can't promise a specific saving. See how BrokerVA works.

Frequently Asked Questions

How much has technology cost per loan risen? Freddie Mac's 2024 study reports that technology-related expenses per loan rose from 2% to 4% over three years.

Does upgrading technology always reduce origination cost? Not automatically. Freddie Mac found measured savings far smaller than the 40% lenders expect, and concluded that technology works best alongside changes in process and staffing.

Why are vendor costs rising? Lenders interviewed by Freddie Mac cited rising per-seat and per-application fees, especially for third-party solutions.

Can staffing structure offset technology friction? To a degree. Role-specific support working inside your existing systems can absorb some of the friction without a platform migration, though the right mix depends on your operation.

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See how BrokerVA works inside your current systems. Book a call with BrokerVA and we'll walk through your numbers and show you our cost calculator.

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