Mortgage lenders and servicers trying to catch up on artificial intelligence have five practices to follow from the companies that are moving fastest, according to a new industry survey.
The State of AI Among Mortgage Lenders and Servicers identifies these practices as helping lenders and servicers accelerate AI adoption:
- Upskilling and AI fluency programs
- Centralizing AI talent, governance and tooling to prioritize high-impact use cases and standardize delivery
- Innovation programs, such as hackathons and internal AI challenges
- Strategic partnerships
- Rotating talent across functions
Mortgage lenders are trailing other financial service sectors in
The typical mortgage company is well behind the average fintech, insurance company and bank in AI development and maturity, according to the report, The State of AI Among Mortgage Lenders and Servicers. The American Association of Residential Mortgage Regulators, the Mortgage Bankers Association and Boston Consulting Group conducted the survey of 29 independent mortgage banks, which account for roughly 40% of the market.
All of the companies surveyed expect to increase AI investment in the next 12 months. It is the primary way mortgage CEOs intend to create a competitive advantage, with their main priorities being: AI acceleration and innovation, growth and market expansion and costs and operational efficiency, the survey found.
Premier Plus Lending announced Tuesday it is
Additionally, 56% of large organizations, at least $5 billion in annual revenue, will spend more than
Yet, AI benefits weaken where the business case is strongest. Only 13% of respondents have experienced significant gains in cost reduction as a result of AI. Just 10% have noticed substantial improvement in regulatory compliance and security, while 6% have seen it in customer experience.
Meanwhile, nearly 30% of companies have witnessed major growth in employee productivity, employee experience and cycle time, the survey showed.
Regulatory uncertainty and unclear return on investment are the primary barriers holding back mortgage companies from AI adoption, cited by 59% and 45% of respondents, respectively, followed by poor data quality at 24%.
"These findings give the industry a clear picture of the opportunities and challenges ahead, from regulatory uncertainty and governance to turning early adoption into measurable results," said Rick Hill, MBA's vice president of industry technology. "By working together, the industry and regulators can address these challenges and help ensure AI is adopted responsibly and in ways that improve the mortgage process for borrowers, while maintaining appropriate safeguards."
