Key Technology Focus Areas for Lenders Going Into 2025–Lender Price’s Dawar Alimi
Dawar Alimi is CEO and Co-Founder of Lender Price, Pasadena, Calif., a provider of cloud-native pricing technology to the mortgage industry. He has more than two decades of mortgage industry expertise, during which he has built industry-leading technology and founded several companies. He is a well-respected thought leader in financial technology and has won numerous awards for his contributions to the mortgage industry.
Alimi can be reached at dalimi@lenderprice.com.
MBA NewsLink: Dawar, as we approach 2025, what do you think will be the most significant technology trends that lenders should focus on?
Dawar Alimi: Great question. Looking ahead to 2025, lenders need to be strategic in how they adopt technology, especially given the challenges we’ve seen over the past few years with rising costs and tighter margins. First and foremost, AI-driven solutions will continue to reshape the industry, but it’s crucial that lenders adopt AI with care, particularly following recent guidance from the Consumer Financial Protection Bureau. The CFPB has made it clear that while AI offers incredible potential, it must be used in ways that prioritize consumer protection, fairness and transparency.
AI is transformative in advancing technologies, and it’s important for vendors to collaborate with stakeholders to monitor its impact on improving solutions. As we move forward, aligning AI integration within the regulatory environment will be crucial. While some AI implementations have successfully addressed regulatory concerns, it’s prudent for any lender to ask their technology vendor how they ensure compliance with regulations. If they can provide evidence and proof, it indicates a reliable partnership.
Analytics and automation are crucial in secondary and capital markets. In a data-driven world, harnessing information is key. Analytics empower businesses to make informed decisions, optimize operations, enhance customer experiences and uncover growth opportunities. In capital markets, they ensure accuracy and efficiency in rapid decision-making. Effective data analysis and automation help companies stay competitive and compliant. Investing in robust analytics is essential for sustained success.
MBA NewsLink: Let’s dive a bit deeper into AI. You mentioned the CFPB’s guidance. How should lenders approach AI-based technologies in light of these concerns?
Dawar Alimi: The CFPB’s guidance emphasizes responsible AI use, which means lenders need to strike a balance between innovation and compliance. Lenders should ensure that the AI tools they adopt are transparent, explainable and tested for bias. This is critical for building trust, both with regulators and with borrowers. AI has the power to make processes more efficient, from underwriting to risk assessment, but lenders need to be diligent about the data being used and how decisions are made.
At Lender Price, for example, we integrate AI with strict controls and visibility, allowing lenders to leverage the benefits of automation without compromising compliance. It’s all about being proactive—developing a framework where AI enhances the borrower experience and operational efficiency while aligning with regulatory expectations.
MBA NewsLink: Speaking of data, what role do you see analytics playing as we move into 2025?
Dawar Alimi: Analytics will be pivotal in 2025, especially as lenders look to maximize efficiency while minimizing risk. Data-driven insights help lenders better understand their portfolios, borrower behaviors and market trends. For instance, analytics can identify which borrowers are likely to refinance, default or churn—information that allows lenders to act strategically, whether that’s adjusting loan terms, offering new products or targeting recapture efforts.
The combination of predictive analytics and real-time data allows lenders to be more agile, responding to changes quickly and more effectively than ever before. It’s no longer about looking at data retrospectively. The goal is to be forward-looking, using analytics to anticipate challenges and opportunities before they arise.
MBA NewsLink: How about automation in secondary and capital markets? How should lenders be using technology here?
Dawar Alimi: Expanded automation in secondary and capital markets is crucial for staying competitive in 2025. As margins tighten and speed becomes a critical differentiator, automation allows lenders to process trades faster, manage risk more effectively, and handle pricing updates in real-time. This is where we see a convergence of AI, analytics and automation, particularly in areas like hedging, risk management and loan pricing.
Automation doesn’t just improve operational efficiency; it also minimizes manual errors, which is particularly important in a regulatory environment that is becoming more stringent. For secondary and capital markets professionals, being able to automate complex workflows will allow them to focus on higher-value activities, like optimizing portfolios and capital strategies.
MBA NewsLink: To wrap up, what would be your key advice for lenders heading into 2025?
Dawar Alimi: My key advice for lenders going into 2025 would be to focus on three pillars: responsible AI adoption, leveraging bulk pricing technology and expanding automation through custom workflows and leveraging data analytics. Each of these technologies not only improves efficiency but also allows lenders to be more proactive, competitive, and compliant in an ever-changing market. By embracing innovation with the right safeguards, lenders can position themselves for success in 2025 and beyond.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
