The 2025 Report on Mortgage Lending in Texas, released by the Texas Department of Savings and Mortgage Lending (SML), provides a comprehensive assessment of residential mortgage activity statewide, highlighting both stability in traditional home purchase lending and notable shifts in refinancing and specialized loan categories. The constitutionally mandated annual report analyzes loan volumes, market composition, and emerging industry drivers across 2023 and 2024.
According to the report, overall residential mortgage volume in Texas experienced modest growth in home purchase lending, with the number of purchase loans rising slightly from 328,504 in 2023 to 329,866 in 2024 — an increase of 0.41%. The aggregate dollar value of these loans also increased by approximately 1.25%, signaling continued demand for homeownership amid broader market fluctuations.
Refinancing activity surged dramatically during the same period. The number of refinance loans more than doubled — increasing by roughly 104% — while its total loan value jumped nearly 148%. This steep rise reflects heightened homeowner responsiveness to interest rate movements and opportunities for mortgage restructuring.
Other categories displayed mixed results:
- Property tax loans saw an 6.8% increase in count and an especially sharp rise in total loan amount (up over 50%), suggesting that borrowers increasingly tapped financing to meet local tax obligations.
- Home equity loans (primarily cash-out refinances) experienced moderate growth in both loan count (8.54%) and value (16.57%), indicating sustained interest in leveraging home equity for personal or financial needs.
- Home improvement loans declined slightly in both count and principal amount, hinting at a cooling in renovation projects or shifting consumer priorities.
- Reverse mortgage volumes declined marginally, despite a slight uptick in total loan amount.
The report further outlines market share dynamics among depository and non-depository lenders. Non-bank mortgage companies and mortgage bankers maintained a strong presence, particularly in certain loan categories, although banks and credit unions continued to play a significant role in owner-occupied home finance.
Innovative Technology Section Highlights AI Adoption
A prominent addition to this year’s report is a new section focused on technology and artificial intelligence (AI) in mortgage lending. The analysis explores how AI applications are reshaping underwriting, compliance, and customer engagement, underscored by recent state regulatory developments such as the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). Industry stakeholders cited the importance of balancing innovation with consumer protection as AI tools become more integrated into loan processing and risk assessment frameworks.
SML officials emphasize that this technological evolution presents both opportunities and challenges for lenders and regulators alike. The agency notes that ongoing monitoring and adaptive governance frameworks will be critical in ensuring responsible use of AI across mortgage operations.
Regulatory Compliance And Outlook
The report, which fulfills the mandate of Article XVI, Section 50(s) of the Texas Constitution, also reflects SML’s role in overseeing licensing and market conduct for thousands of mortgage entities in the state.
With nearly 4,800 mortgage companies, bankers, servicers, and individual originators under its supervision, the agency continues to prioritize transparent reporting and informed policy guidance for industry participants and policymakers.
