Why Mortgage Automation Isn’t Paying Off Yet
Lenders have invested in automation, but disconnected systems and inconsistent data are slowing files and keeping loan costs elevated, an industry executive said.
NEW YORK – Mortgage lenders have invested heavily in automation, but cost per loan remains stubbornly high, Steve Butler, CEO at the lending automation platform TRUE, said in HousingWire.
These new tools promised faster and better processing, decisions and borrower experiences, but the gains have been offset by slower production, duplicate work and added complexity, Butler added.
Much of the inefficiency happens in the hand-offs between tools, when data must be re-entered, reviewed, corrected or reconciled across multiple platforms. When borrower information or documents are incomplete or inconsistent, files can move backward instead of forward, adding rework and slowing decision-making.
“At the center of the issue is data integrity. When lenders push loans downstream before validating core data, they increase the likelihood of rework. Inconsistent borrower information, outdated documents or incomplete records force teams to revisit earlier steps, breaking the flow of the process,” Butler said.
That kind of workflow fragmentation creates what is described as an interoperability tax, where disconnected systems undercut efficiency instead of improving it. More unified systems and cleaner data earlier in the process may help reduce friction, lower costs, and make mortgage operations easier to scale, Butler said.
“Lenders that align their data, workflows and user experiences into a cohesive system will be better positioned to reduce costs and improve performance,” he said.
Source: HousingWire (04/07/26) Butler, Steve
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