STRATMOR Group Reveals Increasing AI and Automation Adoption in Mortgage Industry

DENVER, Colo. — April 15, 2025 — STRATMOR Group, a leading mortgage industry advisory firm, today shared some of the key findings from its 2024 Technology Insight^® Study (TIS), revealing significant growth in digital technology adoption across mortgage lending, particularly in automation and artificial intelligence.

In STRATMOR’s latest InFocus article, “Laying the Foundation for a Seamless Digital Mortgage Experience,” Senior Partner Nicole Yung explores the growing role of automation, artificial intelligence (AI), and machine learning (ML) in the industry, offering valuable insights for mortgage lenders navigating this shift.

“Mortgage lenders are increasingly investing in automation and AI as foundational technologies to improve efficiency and productivity,” Yung says. “This represents a fundamental transformation in how mortgage operations are being conducted.”

Key Insights from the Article:

• Rise of Robotic Process Automation (RPA): RPA adoption has increased since 2020, with 48% of lenders now using automation to streamline tasks like ordering appraisals and credit scores. Lenders are encouraged to evaluate their Loan Origination Systems (LOS) for automation features and invest in building internal RPA capabilities.
• AI and Machine Learning in Document Processing: The use of AI/ML has surged, with 38% of lenders employing AI for tasks such as document classification and indexing, shifting focus from previous years when AI was primarily used for sales and customer targeting. The article outlines how lenders can integrate AI to improve efficiency and ensure data security.
• Overcoming Barriers to Digital Adoption: Although lenders recognize the benefits of digital tools, cost, resistance to change, and integration challenges remain the primary barriers to digital implementation. Yung emphasizes that with strategic planning, strong vendor relationships, and IT investments, these obstacles can be overcome.
• Optimizing Digital Capabilities for Success: The article also highlights the most widely adopted digital capabilities, including online disclosures, document uploads, and dynamic applications. Lenders are urged to prioritize these essential capabilities to streamline processes and improve borrower satisfaction.

“Lenders are strategically prioritizing front-end digital capabilities that directly impact the application process,” noted Yung. “The industry is at a critical juncture where investments in technology foundations will determine which organizations thrive in the increasingly digital mortgage landscape.”

STRATMOR’s Technology Insight^® Study comprises two modules: Lender Intelligence and Digital Innovation, which together assess implementation and adoption levels for digital capabilities across the mortgage process.

The 2025 Lender Intelligence module will open for participation later this month.

In a second article this month, STRATMOR Customer Experience Director Mike Seminari emphasizes the importance of turning mundane loan processes into memorable experiences, much like a fine dining experience, which can lead to increased trust, customer loyalty, and revenue growth.

In “Elevate Your Mortgage Journey from a Service to an Experience,” Seminari offers mortgage lenders practical steps to enhance borrower satisfaction by putting more effort into high-touch interactions at critical points in the mortgage process, such as credit pulls, pre-approvals, and closings. Seminari says that by focusing on personalization, professionalism, and communication quality, lenders can differentiate themselves in an increasingly competitive market.

Click here to read the March/April 2025 edition of STRATMOR’s Insights Report.

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