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Mortgage lenders risk low returns when AI is added without governance
HousingWire quotes Mortgage Workflow Partners CEO Larry Bailey saying lenders often layer AI onto undocumented workflows, creating hidden operational risk and undermining measurable ROI.
Mortgage lenders are continuing to invest in AI, automation and digital transformation even as cost pressures mount, but HousingWire reports that many efforts fail to deliver the returns companies expect.
HousingWire, quoting Mortgage Workflow Partners CEO Larry Bailey, says the core issue is not the technology itself, it is that lenders frequently implement tools before they understand the workflows those tools are intended to improve. Bailey argues that if workflows are inefficient, document-centric, and lack clear ownership, new technology can simply get layered on top without producing operational improvements.
The article also highlights the role of workflow governance and process mapping, with Bailey saying successful lenders establish best-practice workflows first and then align technology to support those processes. Without documented ownership and governance, HousingWire reports that projects can lose direction and fail to meet expected outcomes.
Bailey also describes a “threshold problem,” a gap between what different parties know about their own processes and what they understand about the other side, whether vendors or internal departments. HousingWire says he emphasizes slowing down for discovery, verifying solutions against real workflow needs, and evaluating fit before investing in technology based on assumptions rather than evidence.