Even in the era of AI, borrowers will always be human

When was the first time a borrower could fully self-transact a mortgage?

Was it in 1997, when E-Loan first allowed consumers to shop rates online without the involvement of a broker? Or in 2015, when Guaranteed Rate introduced “the world’s first digital mortgage,” enabling borrowers to apply, get approved, and upload income documentation entirely online? Perhaps it was later that same year, when Quicken Loans launched Rocket Mortgage, revolutionizing how borrowers accessed financing.

The reality is that the mortgage industry has been offering self-service pathways for financing for at least a decade—some might argue closer to three. And yet, loan officer recruitment remains a major priority at industry conferences. Why?

Because even in a fully automated mortgage transaction, the customer is still human.

Solving for what customers want: a licensed guide and a lender they can trust

Technology has undeniably streamlined mortgage origination, making it faster and more efficient. However, efficiency alone doesn’t close loans—trust does. And trust is built through relationships. Whether it’s a first-time homebuyer navigating unfamiliar territory, a move-up buyer weighing complex financial decisions, or a Realtor seeking a reliable lending partner, relationships remain indispensable.

This isn’t just anecdotal. Studies show that even in an era of digital transformation, homebuyers overwhelmingly prefer guidance from real professionals. According to a 2023 Fannie Mae survey, 72% of homebuyers said they value working with a loan officer, and 86% reported that trust in their lender is a key factor in their decision-making. The desire for human expertise and reassurance isn’t generational, either—it spans all age groups and demographics.

Collection, aggregation, interpretation, communication: who does what best?

AI and automation bring undeniable benefits to the mortgage process—faster approvals, reduced paperwork, and enhanced fraud detection, to name a few. But AI doesn’t change the fundamental equation of mortgage origination: it’s still about serving humans. The real challenge for lenders isn’t whether to use AI, but where to use it—and just as importantly, where not to.

Deciding which aspects of the mortgage process should be automated versus handled by humans is key to maintaining both efficiency and a superior customer experience. AI-driven chatbots and automated underwriting systems can process large volumes of data, handle routine inquiries, and speed up administrative tasks. This frees loan officers to focus on what AI can’t replicate—relationship-building, strategic problem-solving, and guiding borrowers through complex financial decisions.

Lenders must assess which steps of the process benefit from AI’s efficiency and precision, and which require the expertise, empathy, and trust that only a human professional can provide. For instance, AI can personalize borrower experiences by analyzing data to anticipate needs and suggest loan products, but it cannot replace the nuanced guidance a loan officer offers when a borrower faces unique financial circumstances.

At the end of the day, AI should not replace human interaction but enhance it. The best mortgage lenders will be those who master this balance—leveraging technology to streamline processes while preserving the human connection that ultimately drives trust and successful transactions.

AI in mortgage: A conversation for more than just tech bros

Discussions about AI’s role in mortgage can’t be limited to software engineers and technologists. We need humanists in the room—those who represent borrowers, loan officers, Realtors, and builders. While AI can optimize processes, it cannot replicate the empathy, expertise, and nuanced understanding that mortgage professionals bring to the table.

That’s why the future of AI in mortgage shouldn’t be about replacing loan officers, but about equipping them with better tools to serve their clients. The conversation should center not just on what consumers say they want, but on what actually delivers the most value to them.

The industry’s future belongs not to those who automate for automation’s sake, but to those who use technology to deepen relationships, build trust, and ultimately, provide a better borrowing experience.

The happy path is the one with humans at the center

AI is here to stay, but so are the people who make mortgages happen. The question isn’t whether the industry will embrace AI—it already has. The question is whether we will use it to empower professionals or diminish their role.

If history is any indication, those who prioritize relationships will continue to be the ones who thrive.