Lenders Turn to AI and Automation as Mortgage Tech Priorities Shift

Digital Tools Take Center Stage

New data from STRATMOR Group’s Technology Insight® Study reveals a significant shift in how mortgage lenders are leveraging technology amid ongoing industry upheaval. The survey shows lenders increasingly prioritizing data and document verification tools, deploying AI-powered platforms to enhance processing speed, improve borrower experience, and reduce costs. Process automation—notably around closing, underwriting, and borrower communication—is experiencing a surge in adoption, as firms strive to do more with less. These investments are a reaction to tighter margins, higher loan origination costs, and growing loan complexity. STRATMOR notes that many lenders are reevaluating long-standing partnerships and seeking new digital platforms capable of delivering immediate ROI.

Fraud Threats Spike, Prevention Top of Mind

As mortgage transactions become more digitized, fraud prevention is emerging as a key tech focus. In an interview with Mortgage News Daily, a STRATMOR expert emphasized that digital identity fraud—especially deepfake-driven document tampering—has seen notable growth in recent years. This has prompted lenders to adopt advanced know-your-customer (KYC) and audit trail technologies that rely on secure data verification, biometric ID, and third-party authentication layers. The expert also highlighted that while artificial intelligence enhances fraud detection, human oversight remains critical to preserving loan quality. Strong tech stacks are now seen not just as efficiency boosters but as vital defenses against evolving threats.