Live session recap: Positioning mortgage lenders to scale effectively

The mortgage industry stands at a critical inflection point. After an extended period of historically high interest rates, homeowners, buyers and lenders alike are anticipating the inevitable drop that will unleash a wave of pent-up demand. When that moment arrives, the market will witness a clear divide: forward-thinking lenders powered by AI will close loans in weeks, while those clinging to legacy processes will struggle with 60- to 90-day timelines, frustrating borrowers and losing business.

This stark reality emerged during Ocrolus’ recent live session on scaling mortgage operations, where industry experts explored how lenders can position themselves for success in the coming lending boom. The message was clear: the time to modernize is now, before the floodgates open.

The urgency of preparation

“The lenders who have invested in more modern, scalable infrastructure are going to be the ones leading the way, while those who haven’t may find themselves struggling to keep up,” said Rebecca Seward, Director of Product (Mortgage) at Ocrolus, during the session.

Her warning carries particular weight given the mortgage industry’s traditional hire-and-fire approach to market fluctuations. When rates drop and applications surge, lenders relying on manual processes face an impossible task: hiring and training staff fast enough to handle the spike without sacrificing quality or speed. The result? Extended closing times that drive borrowers to more agile competitors.

Smart lenders are already taking action by implementing AI-powered automation solutions that can scale instantly with demand. These intelligent document processing tools handle the heavy lifting of document processing and data verification, freeing underwriters to focus on complex decision-making rather than tedious manual tasks.

Transforming the underwriting workflow

The difference between manual and automated workflows becomes starkest in the details. Traditional lenders often discover discrepancies between bank statements and borrower-submitted data late in the process, triggering time-consuming back-and-forth communications. In contrast, AI-powered tools like Ocrolus’ mortgage automation platform flag these issues early, streamlining the entire workflow.

This early detection capability represents more than just time savings; it fundamentally improves the borrower experience. Fewer delays mean faster decisions, reduced frustration and ultimately, more closed loans. For lenders, it means the ability to handle higher volumes without proportionally increasing staff or sacrificing accuracy.

Embracing AI as a partner

Despite these clear advantages, some lending teams remain hesitant about automation, viewing AI as a threat rather than a tool. John Lowenthal, Ocrolus VP of Sales, addressed this concern directly during the session, sharing proven strategies for encouraging adoption.

“Some practical tactics that we’ve seen to encourage adoption are things like formal programs to train and give people certifications… giving someone who saves X amount of time a gift card or tying performance bonuses,” Lowenthal explained.

Ocrolus supports this transition through its AI Empowered Mortgage Professional certification, a free online course that demystifies AI for lending teams. The program covers AI basics, practical use cases and available tools, helping underwriters experience their “aha” moment when they realize AI enhances rather than replaces their expertise.

The path forward

As interest rates hover at their peak, mortgage lenders face a choice that will define their future success. Those who act now to implement automated underwriting workflows will be ready to capture the coming wave of refinance and purchase activity. Those who wait risk being overwhelmed, watching helplessly as nimbler competitors capture market share with superior speed and service.

The technology exists. The strategies are proven. The only question remaining is whether lenders will seize this opportunity to transform their operations before the market shifts. To learn more about leveraging AI for mortgage automation, watch the full live session or book a demo today.

Key takeaways

• Two distinct camps will emerge when rates drop: AI-powered lenders closing loans in weeks versus legacy lenders taking 60-90 days
• Lenders must implement automated workflows now, before the anticipated surge in loan volume
• AI-powered tools detect discrepancies early, reducing delays and improving borrower experiences
• Successful AI adoption requires proper training and incentives to help teams embrace automation as a collaborative tool
• The mortgage industry’s traditional hire-and-fire approach to market shifts is unsustainable in today’s competitive landscape