DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1540559
MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 22 October 2025 F E A T U R E S T O R Y HOW AI IS CHANGING MORTGAGE SERVICING Artificial intelligence is not an end in itself … it is a tool unlike any we have had before, one with the power to redefine servicing and reshape customer expectations. B y G AG A N S H A R M A A rtificial intelligence (AI) is no longer some far-off futuristic concept—it is already changing how we work in mortgage servicing. From an industry perspective, we are focused on the same goals: staying compliant, keeping costs under control, serving customers well, and holding onto those customer relationships over time. What has changed is that we now have a new set of tools to help us hit those goals, and AI is proving to be one of the most powerful tools we have ever had. I call AI a "mega-trend" because it is not just another technology upgrade … it is a shift that is impacting nearly every industry and every corner of society. In servicing, the impact is clear: lower costs, better risk management, faster processes, and more personalized customer experiences. And we are still just scratching the surface. Three Types of AI T o understand AI's role in servicing, it is helpful to distinguish between three categories of capabilities: Predic- tive AI, Generative AI, and Agentic AI. Predictive AI is the most mature and widely used form of AI. By analyzing large amounts of historical and real-time data, predictive models can forecast out- comes and highlight risks. In servicing, predictive AI is helping with analytics, compliance checks, loan boarding, and customer retention. For instance, it can look at customer payment patterns and help servicers identify which loans are at risk of delinquency so they can proactively reach out to customers to offer assistance. This represents a shift from reacting after a problem occurs to anticipating and addressing issues before they escalate. Generative AI is still in its early stages, but is quickly becoming valu- able. It can draft reports, summarize regulations, and even produce customer communications. Tasks that once took days or weeks—such as translating new FHA or GSE guidelines into operational playbooks—can now be accomplished in a fraction of the time. Generative tools are also being used to create investor up- dates or compliance summaries, saving staff countless hours. Then there is Agentic AI, which I believe represents the next evolu- tion. Instead of just automating tasks programmed in advance, agentic AI can make simple decisions on its own and push those decisions back into servicing workflows. That is a big deal, because it moves AI from being a passive tool to an active participant in day-to-day operations. Smarter Conversations T he most mature applications of AI in servicing so far have been internal—loan boarding, document ingestion, and compliance controls. In these areas, AI has already sped up processes and improved accuracy. Customer communication is a more recent development in the use of AI. Chatbots and virtual assistants are now answering frequent questions like "What's my escrow balance?" or "When's my payment due?" at any hour of the day. Customers do not have to wait on hold, and call centers are not bogged down by repetitive questions. G A G A N S H A R M A , Founder and CEO of BSI Financial, is a seasoned entrepreneur and executive with more than 20 years of experience in financial services and tech- nology. Since leading an investment group to acquire BSI from a bank in 2006, he has transformed the company from a small loan servicer into a fast growing and leading nationwide mortgage fintech, fostering 70X growth since the acquisition. BSI was named on Inc. Magazine's Inc. 5000 list of fastest growing companies for two years and on The Dallas 100 list of fastest growing companies in North Texas for four consecu- tive years. Gagan was the finalist for the EY Entrepreneur of the Year in the Southwest Region in 2017. He is a member of the Young Presidents' Organization (YPO).