Mortgage lenders and fintechs are recognizing a growing opportunity to develop customer-facing AI tools as more borrowers embrace the technology. 

Eighty-nine percent of prospective homebuyers are comfortable sharing personal information with a lender’s AI assistant in exchange for mortgage advice, according to a June 11 report by mortgage lender Veterans United Home Loans, which surveyed 400 people in March. 

Nearly 70% said they are comfortable using AI to manage loan application documents and 68% said they trust mortgage information provided by AI assistants. 

Lending fintech Ocrolus plans to capitalize on this trend by developing a customer-facing AI agent, marking a shift for a company that has mostly focused on middle- and back-office AI solutions, General Manager of Mortgage Nadia Aziz told FinAi News.  

“A borrower-facing tool through the lender … is incredibly valuable because if you look at some of the recent data, you’ll see that — for loan officer time, productivity — the ability to quickly engage with borrowers is top of mind for lenders,” she said. 

Ocrolus is designing a self-service tool to help lenders “get borrowers engaged more quickly and give them clarity sooner,” Aziz said. A launch date has not been set. 

Some lenders that work with Ocrolus are:

• American Federal Mortgage;
• HomeTrust Bank;
• Key Mortgage;
• Legacy Mutual Mortgage;
• Nations Direct Mortgage;
• Neighborhood Loans; and
• Union Home Mortgage. 

AI for common questions  

Mortgage loan borrowers are becoming more comfortable using AI to address common queries, “from buying and refinancing to loan options, affordability and what generally matters when applying for a mortgage,” Brian Woodring, chief information officer at mortgage lender Newrez, told FinAi News. 

Newrez, the fifth-largest mortgage lender in the United States, launched a borrower-facing ChatGPT tool in May called Rezi Mortgage Assistant. 

The assistant can “explain these topics in clear, plain language, helping borrowers understand the process without the pressure of speaking directly with a loan officer before they’re ready,” Woodring said.  

“Borrowers can get oriented, learn at their own pace and decide when it makes sense to connect with a Newrez mortgage professional for personalized support.”  

The customized ChatGPT tool provides responses grounded in Newrez’s guidelines, Woodring said.  

Startup fintech Copperlane also has developed an AI agent that mortgage lenders can customize to ensure responses are rooted in its individual policies and guidelines, Chief Executive Athan Zhang told FinAi News. 

Copperlane’s AI agent, called Penny, helps borrowers complete loan applications and provides support throughout the homebuying process, Zhang said.  

Better conversations  

Not only do self-service tools save loan officers time, they also enable “better conversations” because borrowers are more educated and confident when they’re ready to speak with a human, Woodring said.  

Ultimately, such tools demonstrate “how AI can be applied responsibly and meaningfully to help borrowers navigate complexity earlier in the process,” Woodring said.  

“When paired with experienced mortgage professionals, consumer-facing AI has the potential to reshape how lenders deliver clarity, confidence and trust at scale, while creating a more informed and transparent experience throughout homebuying and homeownership,” he said. 

Register here for the FinAi Lending Summit, set for Oct. 7-8 in Las Vegas.