A new survey looks at how mortgage lenders and servicers are using artificial intelligence (AI) and how the industry is approaching AI governance.
The survey, called AI Among Mortgage Lenders and Servicers, shows that the mortgage industry is still in the early stages of AI adoption.
The survey was a joint effort from the American Association of Residential Mortgage Regulators (AARMR), Mortgage Bankers Association (MBA), and Boston Consulting Group (BCG). It is the first collaborative effort by MBA, lenders, servicers, and state regulators to examine the same set of AI adoption and governance questions. Participating institutions account for approximately 40 percent of annual U.S. mortgage origination volume.
“This survey gives regulators our clearest picture yet of the AI landscape within the mortgage industry,” Cliff Charland, AARMR board member serving on the project team and Assistant Commissioner in the Maryland Office of Financial Regulation, said. “The findings will help us work constructively with stakeholders to ensure we can effectively protect consumers, and that both consumers and the industry benefit from responsible AI innovation.”
Five key findings emerged from the survey. Specifically, it found that:
- Mortgage is still in the early stages of AI adoption. Mortgage lenders and servicers generally trail other financial services sectors, including banking and insurance, in AI development and maturity.
- AI adoption is uneven and concentrated in productivity-oriented applications. Nearly all respondents have one or two AI use cases in production, with adoption concentrated in technology, operations, and support functions rather than core mortgage processes.
- AI has yet to produce widespread business results. Respondents report emerging benefits for employees and improvements in day-to-day work, but AI has not yet translated into significant, measurable improvements in outcomes such as cost to originate, customer experience or risk reduction.
- Regulatory uncertainty is the leading barrier to adoption. Nearly 60 percent of respondents identified regulatory and compliance uncertainty as their largest obstacle to greater AI adoption, ranking it ahead of unclear return on investment, model reliability, data quality, and talent constraints.
- AI governance is developing alongside adoption. Nearly all lenders have basic controls in place, including AI policies, privacy protections, and human review. However, ongoing monitoring remains less developed, particularly among smaller lenders. The survey also found that one in four professionals use AI tools outside their organizations’ approved environments.
“These findings give the industry a clear picture of the opportunities and challenges ahead, from regulatory uncertainty and governance to turning early adoption into measurable results,” Rick Hill, MBA’s vice president of industry technology, said. “By working together, the industry and regulators can address these challenges and help ensure AI is adopted responsibly and in ways that improve the mortgage process for borrowers, while maintaining appropriate safeguards.”
Overall, the findings highlight opportunities for the mortgage industry and regulators to work together to support responsible AI adoption.
The report’s findings will be discussed and examined in greater detail during MBA’s Annual Convention and Expo in Chicago on Oct. 11–14.