The social distancing and sudden refinance boom that followed the onset of the COVID-19 pandemic in 2020 gave rise to many fintech developments in the mortgage industry, including the launch of artificial intelligence (AI) features. Four years later, a homebuyer survey from Cloudvirga found that most consumers expect an even more automated, digital experience moving forward. Yet, 60% respondents raised serious concerns about the use of AI in particular.
Cloudvirga, a provider of digital POS platforms, conducted a survey among 1,000-plus homebuyers — most of whom were first-time buyers — about their experience during the mortgage process, including their use of technology, artificial intelligence (AI) and automated communications.
For the application process, 71% of respondents indicated they were very satisfied with the technology provided by their lender. When asked how responsive the lender’s online support was, 27% said they were somewhat satisfied and 67% said they were very satisfied.
The survey importantly notes, 75% of the respondents were first-time buyers, so they could not compare their mortgage experience with another transaction. Additionally, 74% of respondents were 40 years old or younger, which is a demographic that’s already comfortable with digital technology.
But the standard is rising quickly, since the majority of respondents (63%) would have preferred their experience to be even more digital, and 77% of respondents are expecting their next mortgage or refinance to be totally digital.
Though respondents felt comfortable with the online and self-serve aspects of the origination process, the survey found that 60% of homebuyers said the use of AI in the loan process would cause them to select another lender. Company officials did not elaborate on their reasons for disliking AI.
Loan Officers Still Play A Dominant Role
Despite the plethora of new innovations, 58% of respondents said their loan officer handled the initial application process for them, which is “a percentage that is expected to decrease as more digital tools increase fully self-serve options,” the release added.
Nearly half (46%) of homebuyers said their loan officer contacted them directly via phone or email when additional information or supporting documents were required.
A majority of respondents had access to technology that allowed them to receive real-time updates on loan status, (69%) automated document submission, (72%) and access to helpful tools like eSigning, (52%) which have contributed to smoother and faster transactions.
Respondents also reported general satisfaction on submitting and managing documents, with 91% saying they used one system to complete and upload all required documentation. In all, 92% saying they were somewhat or very satisfied with the process for submitting documentation.
Seeing that homebuyers have a high level of overall satisfaction with the mortgage process while it still involves loan officers, Cloudvirga determined that consumers want to have human assistance available when needed.
“Despite the perception that the mortgage industry is lagging in terms of technology adoption, our survey found that lenders are increasingly using digital tools to better engage with borrowers; and it's clear from this research that borrowers are embracing the improved automated, less manual experience," said Maria Moskver, CEO of Cloudvirga. "Having said that, 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.”
