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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 44 November 2024 F E A T U R E S T O R Y them from start to finish. This personal- ized attention helps build a relationship that technology alone cannot replicate. By cultivating a customer-centric cul- ture that values engagement, lenders can turn routine interactions into meaningful opportunities for growth. Lenders need to remember that a positive customer experience goes beyond just addressing needs, especially if you are looking to create a long-term relationship that leads to a borrower's financial success. Moreover, the human touch brings empathy into the equation, allowing lenders to understand the unique cir- cumstances surrounding each borrower and tailor their services accordingly. This empathetic approach can significantly en- hance the borrower's experience, making them feel valued and understood. Buying a home is often stressful for borrowers, as it involves significant financial decisions. Being able to encourage borrowers is something that AI and automation can- not effectively do—it is up to the lender to provide the personal touch each borrower needs. Will AI Change the Borrower Expe- rience? I t is clear that borrowers need real peo- ple, and they have a better experience when the lender provides them. But, as technology gets better at mimicking hu- man capabilities, will the game change? Many lenders are more interested in leveraging AI in smaller-scale applica- tions—to elevate the borrower experi- ence, streamline workflows, and eliminate process silos—than in using it to overhaul existing loan origination systems. This sentiment reflects the industry's growing recognition that legacy processes, often built around outdated technologies, can hinder progress, and impede the ability to deliver exceptional experiences. The vast amount of data that lenders manage makes it difficult for them to stay efficient, while simultaneously prioritizing security and regulations. Over time, company resources can become exhausted. AI presents an opportunity to reimagine these processes, automating functions, and ultimately, reducing the cost of loan origination. We are leaning into the available AI tools and making the best use of them, but it will be some time before they can replace the human presence of a loan officer or processor, if they ever can. Leading banking industry play- ers are looking to AI to generate cost reductions between 25% and 30%. They aim to achieve this by transforming workflows, leveraging big data and the cloud, utilizing market applications like Zillow and other real estate search engines, improving their mortgage core applications, and elevating the custom- er experience by integrating all these ecosystem components. AI as an Enhancement, Not a Re- placement I n the short term, AI will add process efficiencies that can reduce the cost to lend, allowing lenders to send sav- ings back to the borrowers they serve, but even then, it will be technology combined with the lender's people and processes that move the needle on the borrower's experience. AI can be a powerful tool for enhanc- ing the borrower experience, but it should be viewed as a supplement to, not a re- placement for, human interaction. AI can handle repetitive tasks, provide data-driv- en insights and process large amounts of information. All these actions come with improved accuracy and reduced human error. AI features drastically reduce processing times, freeing up loan officers to focus on more complex, personalized aspects of their job. Moreover, AI can help lenders gain deeper insights into borrower behavior and preferences, allowing them to offer more personalized and relevant services. By analyzing data from various sources, AI can identify patterns and trends that may not be apparent to human analysts, providing lenders with valuable informa- tion to enhance the borrower experience. The Future of Borrower Experience A s we look to the future, it is clear that the borrower experience will continue to be a key focus for lenders. The integration of AI and other ad- vanced technologies will play a crucial role in shaping this experience, but the human element will remain indispens- able, as loan officers bring empathy, understanding and trust to the forefront of relationships. Lenders that can successfully combine cutting-edge technology with personalized service will be well-po- sitioned to thrive in the competitive home lending market. By prioritizing the borrower's needs and leveraging AI to enhance, rather than replace, human interaction, lenders can create a truly exceptional borrower experience. In this new era of technological ad- vancements, customers are seeking out companies that are prioritizing custom- er service, transparency, and communi- cation. Maintain a competitive edge by marrying the power of technology with the personalized service that can only come from people. "AI can be a powerful tool for enhancing the borrower experience, but it should be viewed as a supplement to, not a replacement for, human interaction."