Lenders Are Losing Trust in the Age of AI. Here’s What the Best Are Doing Differently. Sponsored by nCino
By Andrea Matthis
In today’s mortgage landscape, balancing cutting-edge technology with personalized service is the key to success. As lenders face rising costs and shifting borrower expectations, learning to leverage AI isn’t optional—it’s essential for survival.
Balancing Costs, Tech, and Trust
The mortgage industry is at a pivotal moment. According to research from Freddie Mac, the cost of originating a mortgage has jumped by 35% in just three years. At the same time, many lenders are reporting net losses on each loan they process. On top of that, regulations now make up nearly a quarter of new home costs, creating more challenges for affordability.
Borrowers today expect more from the mortgage process. They’re used to the convenience of platforms like Amazon but also value the reassurance that comes from working with a trusted expert. Studies show that 68% of homebuyers use technology at some point during their homebuying journey, yet nearly half still rely on real estate agents for guidance.
This blend of expectations brings both challenges and opportunities. The lenders who will thrive are the ones combining smart technology with human expertise—not to replace it, but to make it even better.
Smart AI Implementation
When used thoughtfully, AI has the power to streamline the mortgage process, speed up timelines, and create a better overall experience for borrowers—all while keeping the human element that borrowers trust and value.
A good place to start is with document validation and automation. AI can quickly recognize, verify, and pull key information from uploaded documents, delivering instant efficiency without disrupting your existing processes.
You can also use automated verification services for assets, income, and employment. This step alone can cut down processing times by several days and improve accuracy. Adding real-time status updates through automated notifications helps borrowers stay in the loop and feel more confident every step of the way.
Lastly, think about integrating a dual automated underwriting system. This lets loan officers run both Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Product Advisor at the same time, giving a clearer picture of borrower qualification options earlier in the process.
With strategic AI implementation, you can tackle key pain points and create a smoother, more efficient experience for everyone involved.
Building Connected Experiences
The mortgage process isn’t just about the borrower and lender. It’s a team effort involving multiple stakeholders. Creating a connected system where everyone can collaborate can make a big difference in terms of efficiency and transparency.
For real estate agents, give them dedicated access to track their clients’ loan progress and communicate directly with loan officers. Considering that 86% of lenders say real estate agents are one of their top sources for referrals, building strong relationships here is a smart move.
For settlement agents and title companies, secure collaboration tools are key. These tools should enable document sharing, task tracking, and seamless communication. You might also want to explore hybrid or full eClosing options. They can speed up closing times and deliver a smoother, more convenient borrower experience.
By focusing on these connections, you’ll create a unified and efficient process that works better for everyone involved.
Balancing Technology and Human Touch
Technology is shaping the future of mortgages, but the human element is still essential. Research shows that two out of three NextGen homebuyers don’t fully trust lenders, and 25% say their biggest hurdle is simply understanding the process.
To fix this, start by analyzing your current workflow. Where does human interaction offer real value, and where is it just adding unnecessary time? Refocusing loan officers’ efforts on advising borrowers rather than handling administrative tasks can make a big difference.
Think about creating “high-touch moments” during the mortgage process. These are key opportunities to connect personally with borrowers at critical stages. For example, schedule check-in calls after pre-approval, when the application is submitted, and again just before closing. These touchpoints allow you to answer questions, provide clarity, and guide borrowers, which helps build trust and confidence.
By balancing smart technology with meaningful human connection, you can deliver an experience that’s efficient, supportive, and valued by borrowers.
Digital Mortgage Success Stories
Financial institutions that have embraced digital mortgage strategies are seeing impressive results. Take Camden National Bank, for example. By implementing a digital mortgage solution, they shaved 10 days off their loan cycle times. Even better, 90% of the required documentation was often received by the end of day one, making the underwriting process much faster.
Northwest Community Bank saw similar success, cutting the time from conditional approval to final approval by 10 days. Meanwhile, Genesee Regional Bank created a streamlined single sign-on system that brought together applications, disclosures, and eClosings. This innovation reduced closing appointments to just 15–20 minutes.
These examples show how digital solutions aren’t just about keeping up with the times—they’re about delivering faster, more efficient experiences for borrowers and lenders alike.
Taking Action Now
Moving ahead means balancing digital transformation with genuine human connections that foster trust and loyalty. Start by taking a close look at your current processes. Where are the gaps, and what could be better? From there, develop a clear vision of the ideal borrower experience, along with a practical roadmap to bring it to life.
Invest in technologies that truly enhance efficiency and improve the borrower experience. At the same time, make sure your team is on board. Share the vision, offer thorough training, and celebrate wins along the way to keep momentum strong.
By leveraging smart technology to handle routine tasks, provide better data, and create smoother workflows, you give loan officers more time to focus on what matters most. They can channel their expertise into building relationships, offering guidance, and helping borrowers reach their dream of homeownership. It’s about creating a streamlined, supportive process that works for everyone involved.
Andrea Matthis is a Customer Success Manager – Mortgage at nCino. For a deeper dive into building trust with borrowers through balanced AI and human expertise, download nCino’s free white paper, Lenders Are Losing Trust in the Age of AI—Here’s What the Best Are Doing Differently”.
(Sponsored content includes material submitted independently of the Mortgage Bankers Association and MBA NewsLink and does not connote an MBA endorsement of a specific company, product or service. For more information about sponsored content opportunities, contact Bill Farmakis at bill@jlfarmakis.com or 203/834-8832.)
