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AI in mortgage lending needs transparency to build borrower trust
An IDC study found 30% of lenders take more than four weeks to close loans and 53% of underwriting and decisioning processes are manual.
HousingWire, citing a recent global IDC study, reports that many mortgage lenders still rely heavily on manual work, with 30% taking more than four weeks to close a mortgage and 53% of underwriting and decisioning processes handled manually.
The report says lenders are adding AI for fraud controls and AI-led origination, but friction remains in delivering underwriting that is efficient, compliant, and secure while also keeping borrowers from feeling confused about what is happening in their application.
It argues that “speed with transparency” should guide the next phase of AI adoption, warning that automation without clear explanations can raise compliance risk and reputational exposure.
HousingWire also outlines what it calls trust-building design, including borrower-visible prompts and data collection, clear explanations of what is extracted and what needs manual review, and audit trails that show how AI supports risk assessment.