How AI is Transforming the Mortgage Industry

I've worked with 300+ industry leaders. Here's what they get wrong about AI in mortgage lending: Most lenders think AI is about chatbots and automation. They're missing the bigger picture. The real opportunity isn't generative AI – it's applied AI that can: • Read a loan file in seconds • Surface potential compliance issues • Make instant underwriting decisions • Process closing docs at scale But here's the brutal truth: 90% of "AI solutions" being pitched to mortgage companies are just offshore BPO operations with fancy interfaces. And worse? Lenders are rushing to implement AI with: • No clear strategy • Zero compliance guardrails • No measurable ROI metrics The CFPB doesn't care if your chatbot had "the right framework." If it violates RESPA, you're getting the same fine as if a human did it. Want to actually win with AI? Focus on solutions that: • Have deep mortgage experience (pre-2019) • Show concrete ROI metrics • Solve real operational problems • Stop chasing shiny objects. Start implementing AI that actually drives results. Let me know if you want to hear more about separating AI reality from AI hype.

AI is reshaping how mortgage brokers work Not in theory. In real business workflows. I recently interviewed Richard Wang - A true mortgage industry expert ↳ JD, MBA, CPA, lifelong loan originator, ultra athlete, true wine connoisseur, master networker, giver... Honestly, the list could fill a page ↳ Combines legal and finance background with deep lending expertise ↳ Runs Veridian Mortgage LLC with an awesome team operating across 6 states Here are some sharp insights from Richard: ↳ AI tools now extract data from tax returns and loan documents in minutes ↳ Brokers can upload a competitor’s loan estimate and instantly generate smarter client options ↳ Some lenders, like United Wholesale Mortgage, have launched ChatGPT-style tools for loan guidance ↳ AI assistants are now handling client calls, scheduling, follow-ups and routine queries Key takeaway AI is no longer optional in residential finance It is becoming core to how brokers compete and deliver better service The next 12 to 18 months will separate those who adopt early from those who fall behind 🔔 Follow Gaurav (Rav) Mendiratta for weekly updates on how AI is transforming real-world businesses #AI #Mortgage #RealEstateTech #SmallBusiness #Innovation #DigitalTransformation

I'm excited to share the latest insights from our joint study with HFS Research, "Reinventing the Non-Bank Mortgage Lending Journey in the Age of AI," which was recently featured in an article by HousingWire. This report highlights how 2025 is set to be a transformative year for non-bank mortgage lenders, as technology redefines experience, operations, and value across the mortgage lifecycle.   Key findings include: 74% of non-bank lenders are betting on innovation to drive differentiation, yet only 21% believe they are leading the pack. Agentic AI is emerging as the next big play, merging GenAI’s cognitive reasoning with automation’s precision. Compliance risk remains a challenge, with some lenders receiving up to 1,700 regulatory alerts in 2024. Intelligent Document Processing (IDP) is proving its worth with fast returns, especially in paper-heavy workflows. Outsourcing partnerships are being redefined, with full-service partnerships expected to rise from 30% to 42% by 2026. Automation will reach 68% of mortgage operations by 2026, blending technology, human expertise, and continuous improvement.   As we navigate through operational fatigue, regulatory pressures, and technological disruptions, it is imperative that we embrace purposeful innovation and redefine our strategies. By prioritizing technology with measurable outcomes and leveraging full-service partnerships, we can transform the mortgage lending journey and lead the industry into a new era of efficiency and value creation.   Read the HousingWire article: https://lnkd.in/e4XDJkC4   Download the full report: https://lnkd.in/eRtFhrBV   Read the release: https://lnkd.in/eEwTEHJq   #CognizantBFSI

This post is about the future of the mortgage industry with AI & technology. The majority of the people I spoke with have seen some level of AI involved at their company. Some companies are using it upfront from the digital mortgage application process all the way through servicing. My company is using AI for same day underwriting. The originators love it because of the speed. On the tech side, the originators have a system that allows them to access our LOS & OB on their phones anywhere in the world. All of our systems talk to one another as well. No multiple inputs needed. There are positives and negatives in regards to AI that must be addressed. Positives: Speed. Efficiency. Cost savings. Fraud detection. Routine tasks such as data entry & document processing can be automated. You can enhance the customer experience. Mistakes can be reduced. AI does not sleep. Much of the AI improves decision making & accuracy. The technology allows humans to focus on high level decisions. ChatGPT is very helpful to people branding on social media. Negatives/risks. Most of the clean files would go to AI; processors won't like that. The input is important. Who develops the algorithms & what information are they using? The loss of human engagement is a client retention risk. How do you build the AI into your platform? If you sign up for using AI, are you comfortable cutting the people because jobs will be lost? You could have some reputational risk. 97% of the people I spoke with believe that AI & Fintech are the waves of the future. It is happening right now at most companies. The companies that use the tech well, will reduce the cost of producing a loan. That will give their sales force a competitive advantage as some companies will give the LO's a better price out of the gates. The companies that don't embrace AI & fintech will have to find another way to reduce the cost of producing a loan. I know that several companies are leading the charge with AI & fintech. I would love for some of you experts to comment. Thanks in advance. #AI #Fintech #mortgage #thefuture #risk #rewards