The mortgage industry has long been burdened by time-consuming paperwork, slow approvals and rising costs. But recent advancements in AI are changing that. From automating document processing to improving fraud detection, AI is capable of streamlining nearly every step of the mortgage process.
In fact, according to a recent Fannie Mae survey, 73% of mortgage lenders cite “improving operational efficiency” as the main objective for adopting artificial intelligence and machine learning technology.
Still, there’s a lot of room to grow. Only 30% of lenders have deployed or are trial users of AI and ML. That means there’s a real opportunity for forward-thinking mortgage companies to lead the way rather than play catch-up. Let’s take a look at some practical use cases where AI can make an impact on the mortgage experience for both lenders and borrowers.
1. Automating Document Processing
The challenge: Mortgage lenders deal with mountains of paperwork, and manual document review slows down the mortgage application process while increasing the risk of human error.
How AI helps: According to EY’s Mortgage Executive Research Report, 60% of executives feel they need to increase loan origination volume, and 70% cited reducing operating costs as a top challenge. With rising pressure to do more with less, lenders are turning to AI-powered automation.
AI technologies — like OCR, or Optical Character Recognition — can automatically identify, extract and categorize data from pay stubs, W-2s, bank statements and IDs in seconds. This not only streamlines the mortgage loan application review process but also reduces rework and costly bottlenecks.
2. Improving Credit Risk Assessment
The challenge: Traditional credit scoring methods often rely on limited data and may overlook qualified borrowers. This can lead to missed opportunities and inconsistent underwriting decisions.
How AI helps: Through predictive analytics, lenders leverage data analysis, AI solutions, statistical models and machine learning algorithms to analyze historical data and build a more complete picture of creditworthiness.
Instead of just pulling a credit score, these models can consider other data points like a borrower’s rent payments, utility bills, bank transaction patterns and employment data. This results in a more nuanced view of default risk and helps lenders expand access to homeownership without taking on unnecessary risk.
That said, it’s important to build these systems responsibly. The data used must be carefully selected to avoid reinforcing historical bias. When it’s done right, AI solutions can actually support fair lending by making the process more consistent and data-driven, reducing the impact of human bias in decision-making.
3. Delivering Personalized Mortgage Recommendations
The challenge: Generic loan offerings don’t always fit the needs of today’s diverse borrowers, and they don’t do much to build trust or improve the overall customer experience.
How AI helps: AI is making it easier for lenders to tailor mortgage offers to individual borrowers. By analyzing large datasets, AI can match borrowers with loan products that fit their financial situation, goals and eligibility. By going beyond a one-size-fits-all approach, lenders can boost customer satisfaction and close more loans with less friction.
Companies could even go a step further and use dynamic video to visually walk customers through those personalized offers. Not only does this boost customer engagement, but it helps clients better understand their options.
Take this explainer video, for instance. It doesn’t just break down the general services the company provides — it’s personalized for the individual customer, including tailored estimates and offers that are relevant to them.
Creating content like the video above is another task AI can help with. Our AI video creator, Lucas, can be trained on your existing content — absorbing visuals, logos, tone and more — and generate dynamic, branded videos in minutes. Powered by our Next Generation Video Platform, every video is rendered and able to be edited in real time. It can even be made interactive and personalized!
4. Preventing Mortgage Fraud
The challenge: Fraud is expensive, and getting worse. At mortgage firms, every $1 lost to fraud costs $4.20 to address. For banks, that number jumps to $4.36. Moreover, mortgage fraud due to fraudulent scams went up 51% in 2023.
How AI helps: AI is helping lenders fight back. Advanced AI systems can scan through documents like pay stubs, bank statements and tax returns to spot inconsistencies or red flags quickly. Unlike manual reviews, which are prone to human error, AI can analyze huge volumes of data at speed and scale, making fraud detection more accurate and proactive.
These tools can also learn from patterns. For example, if a certain type of suspicious activity shows up repeatedly, machine learning models can identify this potential new fraud trend and flag similar risks in the future before loans are approved.
From verifying borrower identity to spotting fake documents, AI can help lenders develop a more secure process without slowing things down. The result? Faster fraud detection, fewer false positives and more confidence for both lenders and borrowers.
5. Improving Regulatory Compliance
The challenge: With ever-changing regulations and dense guidelines, staying compliant can be overwhelming and time-consuming.
How AI helps: In an industry where regulations span hundreds or even thousands of pages, AI is proving to be a valuable compliance partner. Generative AI, for example, can quickly sift through lengthy regulatory documents, flag changes and summarize them into actionable insights.
AI tools can also help automate workflow steps related to regulatory reporting, flagging missing information or inconsistencies in real time. That means less manual effort, fewer errors and faster turnaround times.
For financial services companies, this kind of support can make a big difference. It helps lenders stay up to date with changing policies while reducing the risk of noncompliance — something that can lead to costly delays or even penalties.
6. Expanding Customer Support
The challenge: Mortgage companies are expected to provide fast, accurate support around the clock, but staffing a full team 24/7 isn’t always feasible.
How AI helps: AI-powered virtual assistants and chatbots can handle a wide range of customer service needs, from answering basic questions about the mortgage process to guiding borrowers through their next steps. Available 24/7, these tools offer fast, accurate responses while freeing up human agents to focus on more complex issues.
Post on
Video can also play a powerful role in deflecting calls and empowering self-service. AI can help mortgage companies speed up the process of creating dynamic customer service videos that walk borrowers through next steps or answer FAQs.
Interactivity takes this even further. With clickable links and branching options, viewers can navigate to the solutions they need, when they need them. Take this Interactive Video that explains a customer’s options as they come to the end of their forbearance period.
There are clickable buttons and chapter markers that give the viewer control over their viewing experience. They’re free to jump to the option they’re most interested in learning more about.
Customer service videos like these have been shown to reduce support call volume by as much as 73%. Whether it’s a chatbot conversation or a video walkthrough, AI lets your customers serve themselves anytime, anywhere, without sacrificing the personal touch they expect.
7. Streamlining Marketing Efforts
The challenge: Creating consistent, high-quality marketing content takes time and money — resources that always seem to be in short supply.
How AI helps: AI can do a lot of the heavy lifting in campaign creation. Whether marketers are stuck in a creative rut or just short on time, various AI tools can be used to speed up content creation.
Take video marketing, for example. The manual process of producing a video often takes days or weeks. But AI video creators like Lucas can generate a high-quality, on-brand video in minutes. All you need to do is connect your brand, write a prompt and click to generate.
Just take the example below. You could turn any webpage into a video in seconds with AI. Lucas can also connect to your content library to create videos from pre-approved materials. Either way, you can be sure your video is accurate and on brand.
Younger and wealthier audiences are already leaning into this new format. Over 75% say they’re open to or interested in receiving AI videos. With that kind of demand, marketers have a clear opportunity to innovate and connect with their customers.
Getting AI To Work For You
The best AI use cases don’t remove humans from the process. They let people do what they do best, like building relationships and solving complex problems, while letting AI take care of the time-consuming, repetitive tasks that machines excel at. In the mortgage industry, AI is helping lenders move faster, reduce costs and stay ahead of growing expectations.
At Idomoo, that’s exactly what Next Gen Video is all about. It’s personalized, interactive and AI-driven, helping deliver real impact at scale. Whether you’re looking to boost conversions, reduce call volume or improve customer satisfaction, video that does more can be your competitive edge.
Want to see it in action? Reach out today.
