Cloudvirga, a subsidiary of Stewart Information Services Corporation, has announced the findings of a consumer survey that highlights the increasing digitalization of the front-end of the mortgage origination process and growing homebuyer expectations for an even more automated, digital experience.
The survey questioned 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 on the use of technology, artificial intelligence (AI), and automated communications.
Cloudvirga’s research, conducted in September 2024, surveyed more than 1,000 recent homeowners across the country who had bought or refinanced their home within the past 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 comfortable with the online and self-serve aspects of the current origination process, respondents raised serious concerns over 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 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.”
Improved Satisfaction
A majority of respondents (71%) indicated they were very satisfied with the technology provided by their lender for managing the application process. When asked how responsive the lender’s online support was, more than a quarter (27%) said they were somewhat satisfied and 67% said they were very satisfied. It is worth noting that more than 75% of the respondents were first-time buyers which means they did not have a previous point of reference with which to compare their experience. Moreover, the respondents skewed younger: 74% of respondents were 40 years old or younger, clearly a demographic that is more comfortable with digital technology.
What Does the Future Hold?
A 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 totally digital.
AI Acceptance
Despite consumer support of automated technology in the mortgage process, respondents expressed reluctance when asked specifically about AI, with 60% of respondents saying the use of AI in the loan process would cause 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 even though there is satisfaction with digital processes, still a majority of respondents (58%) said their loan officer managed the initial application process for them, a percentage that is expected to decrease as more digital tools increase fully self-serve options. Nearly half (46%) said their loan officer contacted them directly via phone or email when additional information or supporting documents were required. Given the level of overall satisfaction with their mortgage process—which still involved loan officers in both the application and ongoing document procurement process—this underscores that while consumers are eager to embrace technology, they still want the ability to rely on human assistance when needed.
Efficiency Throughout the Process
A 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 helpful tools like eSigning (52%), which have contributed to smoother and faster transactions. Respondents reported general satisfaction related to submitting and managing documents with 91% saying they used one system to complete and upload all required documentation, 92% saying they were somewhat or very satisfied with the process for submitting documentation.
“The survey results highlight an important nuance in consumer expectations during the mortgage process,” added Moskver. “They want the ease and efficiency of automated platforms and a borrower-friendly user interface, but they are still relying on loan officer involvement. Clearly, while AI is an increasingly major component of digital mortgage origination, it’s still not a trusted system for many borrowers. Lenders need to be cautious with how they develop their digital, borrower-first experience, taking a measured approach that meets consumers where they are. Finally, as a technology company laser focused on the consumer mortgage experience, these findings are directing our ongoing development efforts.”
