AI adoption is no longer optional, mortgage advisory firm says
February 26, 2025 – DENVER, Colo. – STRATMOR Group, a leading mortgage industry advisory firm, today released “All Aboard the AI Train: A Practical Roadmap for Lenders,” a comprehensive guide that shows lenders how to leverage AI to enhance efficiency, ensure compliance, and improve the customer experience.
“The mortgage industry stands at a critical juncture where AI adoption is no longer optional but essential for maintaining competitiveness,” said Kris van Beever, principal at STRATMOR Group and author of the piece. “Our research shows that AI technologies are already delivering significant improvements across the entire mortgage lifecycle, from loan origination to servicing.”
Van Beever’s guide describes several ways AI is driving transformation:
- Operational efficiency: AI-powered automation streamlines document processing, workflow management, and task prioritization
- Risk management: Advanced analytics enhance fraud detection and regulatory compliance
- Customer experience: AI tools enable personalized service and faster response times
- Data analytics: Machine learning provides deeper insights for strategic decision-making
- Marketing: AI enables targeted campaigns and improved customer engagement
While AI offers powerful capabilities, successful implementation requires careful planning and human oversight, van Beever said.
STRATMOR’s report is meant to help lenders balance AI adoption with practical considerations and regulatory requirements. It outlines strategies for ensuring data privacy and security, developing effective change management training, integrating AI technology to meet specific business needs, and maintaining human oversight in complex lending decisions. It also examines emerging trends and future applications of AI in mortgage lending.
“Lenders must act now to incorporate AI into their strategic plans,” van Beever said. “Forward-thinking lenders are already using AI to reduce costs, improve accuracy, and enhance customer satisfaction. Those who delay risk falling behind in an increasingly competitive market where efficiency and customer experience are paramount.”
In a second article, “Avoid a Mortgage Nightmare: Evaluate and Elevate Your Customer Experience,” STRATMOR Customer Experience Director Mike Seminari poses the question: “Is your focus on delivering a positive, seamless customer experience, or are your processes unintentionally driving clients away?”
Studies show that nearly 70% of consumers say that after a bad customer service experience, they’ll simply choose a different company next time, regardless of the quality of the product, according to Seminari. “In other words, you could offer the lowest mortgage rates in town, but if your customer experience is lacking, potential clients will quickly look elsewhere.”
He offers lenders three “prescriptions” for avoiding a “mortgage nightmare,” including streamlining communication with borrowers. “Best-in-class lenders not only keep their borrowers always informed—about their loan status, required documentation, and any potential delays—they do it in style.” According to Seminari, that means letting borrowers know right upfront how they communicate and how often they’ll be communicating, including by email, text and phone calls.
Click here to read the February 2025 edition of STRATMOR’s Insights Report.
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. Find out more about STRATMOR on its website at www.stratmorgroup.com.