AI in Mortgage: Insights from the Legal Issues & Regulatory Compliance Conference

QC Ally

The agenda at MBA’s Legal Issues and Regulatory Compliance Conference in San Diego made one thing clear: AI is no longer just a future trend – it’s a present day priority. AI took center stage across several panel discussions, with a strong focus on how to operationalize it safely and responsibly. Industry leaders and legal experts tackled the growing patchwork of federal and state regulations emerging in response to AI’s impact – particularly around operational risk, consumer protection, and the safeguarding of sensitive data.

Key takeaways from the AI-focused discussions:

Generative AI vs. Decisioning AI: A clear distinction emerged between Generative AI, which creates content like text and images, and Decisioning AI, which supports complex decision-making. While generative AI is still considered exploratory in our space, decisioning AI is already critical in areas like loan approvals, underwriting, and compliance checks. The former is seen as experimental and creative; the latter, as foundational and non-negotiable.
Navigating Regulatory Challenges: As regulatory scrutiny of AI begins to take shape, striking the right balance between innovation and oversight is critical. While there is a broad agreement that clear guardrails are essential to protect both borrowers and institutions, there’s also concern that overly restrictive rules could hinder progress. Thoughtful regulation enables responsible automation, which should lower the cost of origination when used effectively.
AI’s Role in Loan Production: Several sessions touched on how AI can streamline loan production, particularly by filling in gaps left by traditional Loan Origination Systems (LOS). AI’s ability to interpret complex, messy data and apply human-like reasoning presents a real opportunity to improve both speed and accuracy in the origination process. Human oversight remains essential to ensure that these tools do not produce inaccurate information or misinterpret data.
Tackling Cost Per Loan: The high cost per loan continues to challenge the industry – largely due to labor-intensive processes (the MBA’s Q1 report shows that cost at $12,579 per loan). AI is increasingly seen as a way to optimize resources and reduce reliance on manual work, all while maintaining compliance and quality standards.

QC Ally’s Approach: Responsible, Client-Driven Innovation
As the mortgage industry embraces the potential of AI, we’re taking a measured and strategic path forward. Our approach is grounded in thoughtful innovation driven by outcomes and guided by three core principles:

Data Security and Compliance First: We prioritize protecting client data through secure, compliant technology practices.
People-Powered Tools: We enhance – not replace – human relationships with intelligent support tools that empower teams.
Purposeful Efficiency: We introduce the right technologies to streamline workflow, reduce friction, and support sustainable growth.

AI may be reshaping the mortgage landscape, but we believe responsible innovation is the key to lasting impact. At QC Ally, our clients can count on both cutting-edge capabilities and the confidence that comes from using them with care.