How intelligent automation and Generative AI help U.S. mortgage lenders scale and win

Use Case AI Application

2024-02-08 | 04:55 PM - 05:20 PM | Applications Stage


  • In Q3 2023, independent mortgage banks (IMBs) and bank subsidiaries reported a pre-tax net loss of $1,015 on each loan they originated (Source:    Mortgage Bankers Association), the sixth consecutive quarter of production losses, with continuing declining origination volume into Q1 2024. The MBA      forecasts that a turnaround is unlikely until the second quarter of 2024, given that mortgage interest rates are still hovering near 8% and that the housing stock in the U.S. market is limited.
  • Despite these setbacks, innovative IMBs are investing in intelligent automation and generative-AI to address these challenges and are setting themselves up to take advantage of the expected growth in 2024.
  • The Case Study will focus on describing the current market challenges in the U.S. Lending Market, define the metrics that lenders use to measure success (cost, turnaround time, scale), discuss the different types of automation technologies that are being deployed in mortgage backoffices, including Robotic Process Automation (RPA), Machine Learning (ML, Intelligent Document Processing (IDP), and Generative-AI (Gen-AI), and showcase the journey of an IMB and how they are using intelligent automation and AI to achieve efficiencies (70% reduction in underwriting time), cost reduction (60% reduction in origination costs), scale (using technology, not people), accuracy (100%), and speed (3x increase in loan throughput) targets, and position themselves for growth in 2024.