The average cost per loan is around $10,000 to $12,000 — roughly double what mortgage lenders reported a decade ago. In recent years, lenders have invested heavily in automation, artificial intelligence and machine learning in the hopes of lowering the cost of producing a home loan. Instead, origination expenses continue to rise.
Traditionally, loan decisions have been handled manually, but these technological advances have quickly become an industry standard — particularly for lenders aiming to maintain a competitive edge. These innovations are becoming important amid a challenging interest rate environment and further market uncertainty.
Many in the mortgage industry operate under the assumption that digital portals and automated underwr...
