Premier Member Editorial: Overcoming Uncertainty as AI Becomes More Prevalent in Mortgage Lending
Kayla Eames is product manager with Tavant, Santa Clara, Calif.
As artificial intelligence continues to make its way into the mortgage and banking industries, it’s natural for professionals, especially underwriters and operations staff, to feel uneasy. The headlines often focus on automation replacing jobs, sparking anxiety about what the future holds. In conversations across the industry, I’ve heard the same concerns repeated, “Will AI make underwriters obsolete? What happens to our expertise when AI can process data faster than we can?”
These are valid questions, and they deserve honest, informed answers. The truth is, while AI will absolutely change the way we work, it won’t eliminate the need for skilled underwriters or operational team members. Instead, it will transform our roles by allowing us to focus more on decision-making, judgment, and efficiency, and less on the time-consuming administrative tasks that slow down the process today.
Understanding What AI Really Does
To start, it is important to understand what AI is designed to do in mortgage operations. AI excels at analyzing large amounts of data quickly, identifying patterns, and flagging inconsistencies. In mortgage underwriting, that means it can review documents, spot missing information, and detect potential red flags with remarkable efficiency.
But AI doesn’t “decide” whether to approve a loan, nor does it replace the human judgment required to interpret unique borrower circumstances or complex scenarios. It can tell us what is different or incomplete, and if regulatory guidelines are met. It cannot approve the loan; that is where the human element remains irreplaceable.
The Role of the Modern Underwriter
The future underwriter’s role is shifting from data collector and reviewer to data strategist. Instead of spending hours combing through paystubs, tax returns, and credit reports, underwriters will increasingly rely on AI to surface the most relevant details and inconsistencies. This allows them to focus on analysis, risk evaluation, and making sound, compliant loan decisions.
Think of AI as a powerful assistant that does not get tired, miss details, or make calculation errors, yet still relies on you to interpret the results. Underwriters will continue to apply expertise, empathy, and ethics in decision-making, ensuring borrowers are treated fairly and that loans are both responsible and sustainable.
Redefining Leadership in the Age of AI
For operational leaders, this transition calls for a mindset shift as well. Leadership in an AI-enhanced environment isn’t about resisting technology–it is about harnessing it. Leaders must focus on guiding teams through change, fostering a culture of learning, and helping employees see AI as a resource for empowerment rather than a threat.
That means investing in training, creating open conversations about how AI supports rather than replaces work, and ensuring transparency about how new technologies are implemented. The more employees understand how AI complements their expertise, the less fear and resistance they will feel.
Great leaders will also need to champion the human skills that technology can’t replicate including critical thinking, problem-solving, and ethical judgment. These will become even more valuable in an increasingly digital environment.
Building Confidence Through Adaptability
Change is rarely comfortable, especially when it challenges long-standing ways of working. But adaptability is one of the most powerful skills we can develop. The underwriters and leaders who will thrive in the years ahead are those who stay curious; embrace lifelong learning; and see AI not as a threat but as an opportunity to elevate their craft.
By learning to work alongside AI systems, professionals can focus their energy on the higher-level aspects of lending like balancing risk with opportunity while ensuring regulatory compliance. AI can make processes faster and more accurate, but it is human insight that gives those processes meaning.
The Human Advantage
At its core, mortgage lending is about helping families achieve homeownership and supporting financial well-being. AI cannot replace empathy, fairness, or sound judgment. It can help us work smarter, but it cannot replace the human connection that strengthens this industry.
The path forward isn’t about choosing between humans and machines. It is about bringing the best of both together. When we combine the precision and efficiency of AI with the judgment and empathy of experienced professionals, we create a more balanced, effective, and trustworthy mortgage process.
The Future
The expansion of AI is not the end of underwriting, rather it is the evolution of it. It is an opportunity for professionals to strengthen their skills, and to focus on the aspects of their work that matter most. The future of mortgage lending will involve leveraging innovation to enhance, not replace, the expertise that only people can provide.
(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. For more information about publishing an MBA Premier Member Editorial, contact MBA’s Alicia Goncalves, CMB)
