Smart Underwriting, Digital-First Platforms, and Deeper Collaboration With Fintechs

Although the mortgage industry has already benefited from automation and initial investments in data analytics, the next wave of opportunity in 2025 and beyond will deliver on the widespread integration of AI. Embracing this technology will help lenders eliminate remaining paper-heavy approaches, deliver personalized borrower experiences harnessing customer-centric, self-service platforms, and overhaul risk assessments and underwriting practices.

Investing in the core building blocks that underpin AI-driven transformation will bring greater resiliency and unlock new opportunities for mortgage lenders:

• Smart underwriting: AI can streamline Federal Housing Administration (FHA) loan underwriting processes by automating document handling, income verification, credit analysis, and risk modeling, reducing underwriting cycle times by 50% while improving risk assessments.
• Customer-centric, self-service platforms: Setting the foundations for AI success will help lenders deliver on borrowers’ expectations of tailored recommendations and loan products, faster loan approvals and real-time updates on application status, and seamless transitions between mobile apps, web platforms, and physical branches.
• Deeper collaboration with Fintechs: Agility will be key to land partnerships with Fintechs, helping lenders pioneer new products such as embedded mortgage calculators and digital closing solutions and deliver the digital-first experience that customers expect, while lowering acquisition costs.