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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 30 August 2025 T H E E X C H A N G E W hile many are debating how artificial intelligence will impact the industry, Jerry Mills, an Asset Manager with Phoenix Asset Management, remains firm on one point: there's no substitute for boots on the ground and personal relationships. In this Exchange Q&A, Mills discusses where AI is proving useful, how agents can stay relevant in a shifting REO landscape, and why trust—not tech—remains the cornerstone of successful partnerships. Q: How is your organization currently using AI in asset management operations, and what specific benefits have you seen so far? In several areas: A. Asset Onboarding & Property Valuation B. Property Preservation & Maintenance Management C. Listing Strategy & Disposition D. Buyer Matching & Sales E. Compliance, Reporting, and QC F. Risk & Portfolio Management Q: How do you balance leveraging AI for efficiency while maintaining human connection, and how do those two factors play into decision-making right now? Mills: We use AI as simply a tool to sup- port our business. Personal connection along with eyes and boots on the ground are keys to success in this industry. As an agent myself, I put more emphasis on my agent expertise than I do on AI. AI is great to give me property characteristics along with who the target buyer is, or what hurdles we may encounter when marketing, but the agent works their market every day. Q: How do you see REO volumes shifting in the next 3-6 months and also over the next year? What key economic indicators are you watching most closely? Mills: We see an uptick coming for sure, but don't have accurate forecasting as to what that looks like right now. Third-par- ty sales are unpredictable but appear to be slowing down, with a higher percent- age of foreclosures coming through to REO. The biggest things I see as having an impact are increases in property taxes, increases in insurance costs, and legis- lation for short-term rentals, especially for homes bought in the last five years. Appreciation jumped considerably, and many folks maxed out their purchasing power to overbid other buyers. Now, their mortgages are adjusting to the increase Jerry Mills Asset Manager, Phoenix Asset Management in insurance and taxes, which is putting them behind or draining savings ac- counts. Credit card debt is still increasing as well, and people aren't able to leverage their equity to pay off debt. Q: How should agents position themselves now to stay competitive given these projected changes? Mills: Be present. Go to industry-related conferences and make sure asset manag- ers know who you are. Provide updates in your market area to asset managers who ask for it. We are all busy, but to gain knowledge is always a benefit to me. A quick email with some stats about delin- quency and filings in the area is some- thing I will always take the time to review. That being said, don't pester your asset managers with weekly phone calls asking for business. Provide relevant informa- tion, and it will go a long way towards getting assignments when available. Most importantly, tell us what we need to know, not what we want to hear. Q: How do you reset your expectations for REO agents and vendor partners in this new market environment? Mills: Communication is key, no matter the condition of the market. Every prop- erty is different. I need to know what it is going to take to liquidate the property, keep squatters out, and maximize the return for my clients. Does it need re- pairs? Does it need a board-up? I live in Colorado, I know the things that need to be done here, but it may be very differ- ent where you live. Give me the details, because my clients are going to want to know. Clients are spending more time looking at property-level loses and doing more of their own diligence. Q: What new skill sets or certifications will be especially important for agents to have? Mills: It is important to communicate efficiently. I don't spend a lot of time