PERSON OF THE WEEK: For the mortgage lending industry, artificial intelligence (AI) holds great promise to reaching the end goal of a fully digital, fully automated, fully compliant home buying process that takes only minutes and yet is personalized and seamless for the borrower.
That day is coming soon, says Sandeep Shivam, AMP, product evangelist and associate director with Tavant, in a recent interview with MortgageOrb.
Q; How is technology transforming the mortgage industry as a whole?
Shivam: Over the last 30 to 40 years, the mortgage industry has experienced significant technological advancements. We’ve progressed from basic digital record keeping to fully digitalized application processes, and today, cloud-based infrastructure is helping reduce IT costs while improving scalability.
These innovations have undoubtedly increased convenience for borrowers. Automated verification services have streamlined document collection and validation. Operational teams have benefited from tools like OCR technology to process information more efficiently. However, despite these advances, the overall loan cycle time has remained largely unchanged since the 1990s. In fact, the cost of originating a mortgage has continued to rise over the years, even with these efficiencies in place.
We are now at a critical inflection point, standing on the threshold of what could be the industry’s next major transformation—Artificial Intelligence (AI). In conversations with industry leaders, there is both excitement and optimism around AI’s potential. The mortgage process is highly human-centric, involving underwriters, loan officers, processors, and other stakeholders. AI’s ability to replicate certain decision-making processes and automate complex workflows presents an opportunity to significantly reduce the human effort required.
Q: How are borrower expectations shifting in response to an increasingly digital and self-serv mortgage landscape?
Shivam: In the past, borrowers primarily sought the best rates and price, paired with excellent service. Later, their expectations expanded to include the convenience of a digital
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