New report shows early AI gains concentrated in sales and borrower engagement
January 29, 2025 – DENVER, Colo. – Artificial intelligence is rapidly becoming a foundational capability among mortgage lenders, yet many are struggling to take full advantage, according to STRATMOR Group’s latest Insights Report.
In “Prepare for Takeoff: AI and the Fight for Mortgage Lending Efficiency,” STRATMOR Senior Partners Garth Graham and Michael Grad note that while lender interest in AI continues to grow, many organizations are still experimenting rather than operating with a clearly defined AI strategy.
Pointing to data from STRATMOR’s annual Technology Insight® Study, Graham and Grad observe that early AI adoption is heavily concentrated in borrower interaction and sales workflows, where predictable inquiries and repetitive tasks make AI particularly effective. However, the same conditions can create operational weaknesses when execution is inconsistent.
The authors liken the current environment to a busy airport operating without sufficient air traffic control, where volume, complexity, and fragmented systems strain even the most capable professionals.
“Without air traffic control, airports grind to a halt,” Graham says. “Without better coordination at the top of the funnel, mortgage lending experiences the same symptoms: delays, missed connections, frustrated customers, and rising operational strain.”
Graham and Grad outline several forces accelerating AI adoption across the industry, including sustained margin pressure, persistent staffing constraints, and borrower expectations shaped by seamless digital experiences outside mortgage lending.
However, they caution that AI does not fix broken processes. Instead, it quickly exposes them. Lenders experiencing the most success with AI are taking a disciplined approach by prioritizing a small number of high-impact use cases, tying initiatives to measurable outcomes, and integrating AI into existing workflows rather than layering on disconnected tools.
Their analysis also highlights how AI-powered agents used in customer service are improving responsiveness, consistency, and productivity by answering common borrower questions, collecting missing information, and routing complex issues to human staff. When deployed correctly, STRATMOR notes, these tools can reduce operational strain while improving the borrower experience.
“AI is not about replacing loan officers,” Grad says. “It’s about making them more productive and more effective, handling routine interactions consistently and at scale, while allowing people to focus on judgment, relationships, and closing loans.”
In a second Insights Report article, Director of Customer Experience Mike Seminari underscores the importance of operational readiness as market conditions shift. His article, “Future-Proofing CX Before Volume Returns,” notes that while most borrowers are satisfied with their loan officers, their tolerance for process breakdowns — such as unclear timelines, inconsistent communication, and repeat requests — continues to wear thin.
“As volume returns, lenders will not be judged solely on individual interactions, but on the reliability of the experience they deliver at scale,” Seminari says. “Organizations that rely on heroics instead of repeatable processes will struggle to meet rising borrower expectations when capacity tightens again.”
In the article, Seminari offers three strategic priorities to focus on in 2026, along with the tactical actions that bring them to life.
Read the entire January Insights Report here.
About STRATMOR Group
STRATMOR Group is a leading mortgage industry advisory firm that provides a range of programs and services for senior industry executives. STRATMOR serves more than 250 companies annually, recommending strategies that increase growth and improve profitability in sales, marketing, technology, operations and mergers and acquisitions. The company leverages comprehensive, proprietary data and key insights gained through extensive experience in the mortgage industry. STRATMOR is well known for its financial models and its collaboration with the Mortgage Bankers Association in the PGR: MBA and STRATMOR Peer Group Roundtables Program. Learn more at www.stratmorgroup.com.