Exploring AI and Automation in the Mortgage Industry

In the latest episode of “Ahead of the Heard,” a podcast dedicated to exploring the cutting edge of technology and innovation, Olive Technologies’ CEO, Chris Heard, engages in an enlightening conversation with Corbin Wells, a seasoned expert in the mortgage industry with over 15 years of experience. Currently the Director of Product Management at PRMI, Corbin shares his insights on the unique challenges and opportunities within the mortgage sector and the transformative role of AI and automation.

Key Learnings from this weeks episode;

On Choosing the Right Vendors

“If it is an industry problem, pretty much everybody in the industry struggles with this problem, and we expect our vendors to solve that problem.”

– Corbin Wells

Corbin emphasizes the importance of selecting the right vendors who can address industry-wide issues. This is crucial for IT leaders as it highlights the need for reliable and capable vendors who can offer solutions to common challenges faced by the industry. By choosing the right vendors, companies can ensure they are better equipped to handle these issues efficiently, leading to improved performance and reduced operational hurdles.

Adversarial Vendor Evaluation

“It is always an adversarial posture… they are trying to only share with me the good stuff, and now I have to try to figure out what they’re not saying.”

– Corbin Wells

Corbin discusses the inherently adversarial nature of vendor evaluation. This resonates with IT leaders who often encounter transparency issues during vendor assessments. The challenge lies in deciphering the full scope of a vendor’s offering beyond the polished presentations. Understanding this adversarial dynamic is essential for IT leaders to develop strategies that ensure thorough evaluations and informed decision-making.

Adoption of AI and Automation in the Mortgage Industry

The discussion delves into the industry’s urgent need to reduce operational costs, which have tripled since 2005 due to increased regulation. Corbin emphasizes the potential of AI and automation to streamline processes and improve efficiency, predicting rapid adoption of these technologies across the sector.

Reducing Mortgage Processing Costs with AI

The episode explores the significant expenses involved in mortgage processing, with the average cost per loan soaring to $14,000. Corbin discusses strategies for leveraging technology to bring these costs down, focusing on industry-wide collaboration and vendor partnerships.

“The cost of doing a loan back in 2004-2006 floated right around $4,500 per loan… that number as of last quarter was $14,000.” – Corbin Wells [31:45]

Corbin highlights the dramatic increase in operational costs over the years, making a compelling case for the adoption of AI and automation. For IT leaders, this underscores the urgency of leveraging technology to reduce these escalating costs. Implementing AI can streamline processes, improve efficiency, and ultimately bring down the high costs associated with mortgage processing, positioning companies for better financial health and competitiveness.

Ensuring Robust Cybersecurity Measures

With recent high-profile security breaches, Chris and Corbin address the importance of robust cybersecurity measures in the mortgage industry. Corbin stresses the need for quick recovery strategies and the potential for a future where redundancy and backup systems become standard practice