AI Doesn’t Mean No, It May Mean More

The intersection of artificial intelligence (AI) and the mortgage industry is rapidly evolving from theoretical discussions to practical applications. It’s been a very active topic of conversation among our lender partners. New prospects who are preparing to upgrade to better lending technology, like Mortgage Cadence, are also interested in how AI will impact the business going forward.

That’s why we integrated AI session-focused topics in a number of sessions at this year’s Mortgage Cadence Ascent Users Conference, and ongoing conversations with our current customers and prospects

George Morales, National Sales Director for Mortgage Cadence was one of our MCs for this year’s events.

"AI has been all over the news in our space for a year or two," he notes, "but really what's on our mind is how AI is going to make a difference in the mortgage space for lenders and consumers."

Changing the Way We Think About Personnel

As technology giants like Apple announce new AI initiatives and companies like our parent company Accenture invest billions in AI development, industry insiders expect the mortgage sector to see significant transformations. But how will AI reshape lending processes, customer interactions, and internal operations?

One of the most intriguing developments is the potential for AI to revolutionize customer-facing roles. Morales mentions seeing demonstrations of AI systems functioning as virtual loan officers, providing rates, pricing, and eligibility criteria to consumers.

This advancement could dramatically streamline the initial stages of the mortgage process, making it more accessible and efficient for borrowers. It could also drastically reduce the cost to originate, most of which is spent on sales resources.

However, the integration of AI into customer-facing roles isn't without challenges.

Morales raises an important point about licensing requirements: "I'm still wondering about the licensing pieces of that sort of exchange with a consumer."

Would an AI loan officer need an MLS number?

As AI systems become more sophisticated in their ability to interact with customers, regulatory frameworks will need to evolve to ensure compliance and consumer protection.

Going Beyond the Customer Interaction

Beyond customer interactions, AI is making inroads into internal operations within mortgage companies. Morales pointed out that Mortgage Cadence is is testing this technology to enhance support ticket management, as a pilot program.

"We're in the process of using AI to help develop [support tickets] and use it as a way of making sure we're all talking the same language," he explained.

This application of AI also addresses a common challenge in the industry: high turnover rates and the resulting repetition of similar queries from new employees. AI can help consolidate responses, identify patterns in inquiries, and even generate training materials. This not only improves efficiency but also ensures consistency in communication and support.

The potential of AI in the mortgage industry extends far beyond these initial applications. As machine learning algorithms become more sophisticated, they could play a crucial role in risk assessment, fraud detection, and process automation.

AI can analyze vast amounts of data to identify market trends, predict borrower behavior, and optimize pricing strategies. Lenders, as you might expect, are interested in all of these innovations.

But Morales points out that without good guidance to help users understand both the strengths and weaknesses of these new tools, there will be risk for early adopters. By featuring these new innovations at Ascent, Mortgage Cadence opened the conversation with lenders who are still looking for a guide that gets AI.

“AI can enhance efficiency and provide valuable insights,” Morales said, “but the human element – empathy, judgment, and personalized service – remains indispensable. Its critical to reach out to the Mortgage Cadence team to discuss these insights thoroughly.” To start the conversation for your own institution, reach out to Mortgage Cadence today and see how we are currently deploying AI in our platform and the mortgage industry.

By George Morales, National Sales Director at Mortgage Cadence 

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Mortgage Cadence: 
Alison Flaig 
Head of Marketing 
(919) 906-9738