Mortgage’s AI Crisis is Coming. The Industry Isn’t Ready to Talk About It.

HousingWire, May 8, 2026-Editorial written by Mitch Cohen

A borrower in forbearance gets the wrong information about their reinstatement options. It came from an automated servicing communication, routed through a system nobody fully owns and nobody fully monitors. By the time someone catches it, hundreds of borrowers have received the same message. Some acted on it.

Now there’s a reporter making calls.

Who speaks? What do they say? Who decided the system would handle that communication in the first place?

This is the AI crisis scenario mortgage isn’t preparing for. Not a rogue algorithm making loan decisions. Something quieter and more insidious: a system operating exactly as designed, at scale, with consequences nobody anticipated and no communications infrastructure to manage them.

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