"By automating repetitive and labour-intensive aspects of mortgage processing, AI enables brokers to focus on their core competencies - advising clients and providing strategic guidance."
Artificial Intelligence (AI) has taken the world by storm over the past year or so. This innovative technology has been transformative for a wealth of industries by automating processes, streamlining operations and enhancing problem-solving. The mortgage industry, which has garnered a reputation for relying on manual processes, is enjoying a bit of a revolution thanks to AI tools at the moment. However, that doesn’t mean the role of a broker is defunct - far from it. In this article, I’ll discuss the importance of brokers in an AI-driven mortgage industry and how they have a big role to play in this new landscape.
A slow start for AI in the mortgage industry
The mortgage industry, often entangled in tried-and-tested methods, heavily depends on manual processes that are time-consuming, error-prone and largely inefficient. AI is revolutionising industries globally. In healthcare, for instance, AI-driven robotic surgeons are aiding complex surgeries - enhancing precision and minimizing human error. In stark contrast, mortgage brokers are still grappling with the basics of AI, with many yet to tap into the potential of powerful AI tools.
During a recent seminar, I conducted a live poll among mortgage brokers and found that a staggering 80% were unaware of how to create their own AI-powered assistant using ChatGPT - or its potential to enhance their workflow. While other sectors are progressing towards fully autonomous AI systems and reaping the benefits, the mortgage industry is only starting to understand how AI can streamline their operations.
From predictive AI to agentic AI: The evolution of AI in mortgages
Although it has been a slow journey compared to other industries, AI has started to take hold in the mortgage sector. This process was iterative and has evolved through distinct phases, which included:
• Predictive AI, which primarily focused on analysing historical data to make informed forecasts. This type of AI is helpful but largely passive.
• Generative AI then introduced capabilities for AI models to create text, images, and even code, significantly improving automation and content creation.
• Agentic AI represents the next frontier, where AI can autonomously perform tasks, make decisions within set parameters, and integrate with various systems seamlessly.
While finance and healthcare industries are transforming rapidly with the adoption of agentic AI, the mortgage sector’s adoption remains tepid for now. However, early adopters are poised to gain significant advantages and find great success by harnessing AI before it becomes the norm in the industry.
Why mortgage brokers are still bogged down in administrative work
Mortgage brokers are swamped with time-consuming paperwork and administrative tasks such as:
• Client screening.
• Factfinding.
• Product sourcing.
• Analysing bank statements and credit files.
• Writing suitability letters.
• Liaising with business development managers (BDMs).
• Responding to underwriters.
These tasks, while important, consume time that could be better spent on advising clients and closing deals. This is where AI employees can make the biggest impact across the mortgage industry.
AI employees: The game changer for mortgage brokers
AI employees aren’t here to replace mortgage advisers but to support them. By automating repetitive and labour-intensive aspects of mortgage processing, AI enables brokers to focus on their core competencies - advising clients and providing strategic guidance.
AI employees differ from simple chatbots or rule-based automation tools in that they can learn, adapt, and make informed decisions based on real-time data. They seamlessly integrate with systems such as open banking, credit reference agencies, and ID verification tools, which reduces the time required for document processing and client onboarding.
How AI is already transforming the mortgage process
AI’s impact on the mortgage process is already evident, even if it isn’t as advanced as in other industries. On the ground level of the industry, we can see AI helping with tasks such as:
• Automating client screening: Instant assessments of borrower eligibility using financial data.
• Smart document processing: Important data extraction from bank statements, payslips, and tax records without manual input.
• AI-powered factfinding: Auto-filling forms based on client responses to minimise paperwork.
• Compliance and risk assessment: Ensuring that documentation adheres to regulations and reduces human errors.
The role of AI in mortgage advising: What’s next?
While AI is great for reducing administrative workload, the role of the mortgage adviser in managing client relationships and regulatory advice remains essential. AI is a tool to assist, not to replace human expertise.
Currently, AI should be leveraged to handle administrative burdens, allowing brokers to focus more on client interactions, market insights, and deal structuring. The future of mortgage brokering isn’t about AI taking over; it’s about brokers who know how to use AI effectively gaining the upper hand.
The industry is transforming. The question now is: will brokers evolve with it?
