The AI Revolution: ChatGPT Shakes Up the Mortgage Industry
Dustan Woodhouse, a high school C+ student from the 80s, has become a prolific writer in the mortgage business. He’s authored four books, hosts over 400 podcast episodes, and maintains a vibrant LinkedIn presence. But even this seasoned writer was left in awe by ChatGPT. This AI tool, he says, is a game-changer, leveling the playing field for less experienced writers.
AI is infiltrating every industry, from oil and gas to fintech, and the mortgage industry is no exception. While AI tools like ChatGPT or Bard can’t replace the human touch in customer interactions, they’re being used to streamline various tasks. However, the adoption of AI in the industry is slow, with only about 5% of brokers using it. The reasons? Overwork, stressful market conditions, and concerns about the ethics and reliability of AI.
The AI Advantage: Saving Time and Simplifying Communication
Nolan Smith, owner of Oceanvale Mortgage & Finance, is an early adopter of AI. He uses ChatGPT to write blog posts and improve search engine optimization. It also serves as a research tool for mortgage marketing. “If I don’t understand a software, or a way into lead funnelling, or landing pages, I’ll just ask ChatGPT about that,” he says.
ChatGPT also acts as a translator, simplifying complex financial terms and policies. Woodhouse uses it to script his podcast and proofread lengthy emails. He sees written communication as the prime area where AI can make a difference in a mortgage broker’s world.
AI in Mortgage Research: A Game Changer
Beyond scripts and emails, AI is a powerful research tool. It can help brokers provide customers with detailed information to make informed choices about mortgage products. Geoff Willis, president and CEO of Newton, believes AI-fueled mortgage research will enhance customer involvement.
AI’s role in mortgage research extends to facilitating transactions. Celligence, a U.S. fintech, used an AI system named MORGAN to complete an end-to-end home purchase. This development signals that AI is set to revolutionize the industry.
Trust Issues and the Future of AI in the Mortgage Industry
Despite the potential benefits, trust issues hinder AI adoption. In the mortgage business, trust is paramount. Woodhouse believes the low adoption rate may be due to distrust of AI-generated content.
Moreover, the industry is currently overwhelmed. With record-high home prices, strict financing requirements, and no imminent interest rate reductions, it’s a challenging time to be a mortgage broker. Unless AI can help brokers find highly qualified clients, it won’t get their attention.
AI can’t solve all the industry’s problems, but it can help brokers find clients capable of meeting today’s stringent requirements. As Woodhouse says, “I don’t think anyone’s quite unravelled that puzzle just yet.”
