Are homebuyers increasingly satisfied with advances in AI?

Cloudvirga, a subsidiary of Stewart Information Services Corporation, announced the findings of a consumer survey that highlights the increasing digitization of the front-end of the mortgage origination process and homebuyers’ growing expectations for an even more automated digital experience.

The survey asked recent homeowners, the majority of whom were first-time buyers, a series of questions about their experience during the mortgage application and closing process, including their perceptions of using technology, artificial intelligence (AI), and automated communications. .

Cloudvirga’s survey, conducted in September 2024, surveyed more than 1,000 recent homeowners across the country who purchased or refinanced their homes in the last two years. More than three-quarters, or 76%, of participants were first-time homebuyers.

The survey found that the majority of participants expressed satisfaction with the digital experience provided by lenders and would expect even more automation in future mortgage transactions. And while they are comfortable with the online and self-service aspects of the current origination process, respondents raised serious concerns about the use of AI in mortgages. This presents a challenge for the industry as lenders explore when and how to implement new digital solutions.

“Despite the perception that the mortgage sector is lagging behind in terms of technology adoption, our survey found that lenders are increasingly using digital tools to better interact with borrowers; and it is clear from this research that borrowers are embracing the improved, automated and less manual experience,” said Maria Moskver, CEO of Cloudvirga. “That said, they are concerned about the role of AI in this process. Our survey results reinforce the growing consensus that homebuyers are becoming increasingly tech-savvy and expect the mortgage process to mirror the seamless digital experiences they encounter in other parts of their lives.”

Improved Satisfaction

The majority of respondents (71%) indicated they were very satisfied with the technology provided by their lender to manage the application process. When asked about the responsiveness of their lender’s online support, more than a quarter (27%) said they were somewhat satisfied and 67% said they were very satisfied. It’s important to note that more than 75% of respondents were first-time buyers, meaning they had no prior point of reference to compare their experience to. Additionally, respondents were younger: 74% of respondents were 40 or younger, clearly a demographic that is more comfortable with digital technology.

What does the future hold?

The majority of respondents (63%) would have preferred their experience to be even more digital than it already was, and 77% of respondents expect their next mortgage or refinance to be fully digital.

AI Acceptance

Despite consumer support for automated technology in the mortgage process, respondents expressed reluctance when asked specifically about AI, with 60% of respondents saying that using AI in the loan process would lead them to select another lender.

The importance of a human touch

Cloudvirga found that loan officers still play a dominant role in the mortgage process. And while there is satisfaction with digital processes, the majority of respondents (58%) said their credit manager managed the initial application process for them, a percentage that is expected to decline as more digital tools increase full self-service options. . Almost half (46%) said their loan officer contacted them directly by phone or email when additional information or supporting documents were needed. Given the level of overall satisfaction with their mortgage process – which still involved loan officers in both the application process and the ongoing document acquisition process – this highlights that while consumers are eager to embrace technology, they still want the power count on human assistance when necessary.

Efficiency throughout the process

The majority of respondents said they had access to technology that allowed them to receive real-time updates on loan status (69%), automated document submission (72%), and access to useful tools like electronic signatures (52%), which contributed for smoother and faster transactions. Respondents reported overall satisfaction related to document submission and management, with 91% saying they used a system to complete and upload all required documentation, and 92% saying they were somewhat or very satisfied with the documentation submission process.

“The survey results highlight an important nuance in consumer expectations during the mortgage process,” Moskver added. “They want the ease and efficiency of automated platforms and a borrower-friendly user interface, but they still depend on the involvement of loan officers. Clearly, while AI is an increasingly important component in digital mortgage origination, it is still not a trusted system for many borrowers. Lenders need to be cautious in how they develop their borrower-first digital experience, taking a thoughtful approach that meets consumers where they are. Finally, as a technology company focused on the consumer mortgage experience, these findings are driving our continued development efforts.”