Jim Rosen on leveraging AI for mortgage industry differentiation
As AI continues to dominate conversations in the mortgage industry, Mortgage Cadence is focusing on actionable integrations that cut costs and make LOs more efficient. Jim Rosen, head of product and services at Mortgage Cadence, joined HousingWire’s Diego Sanchez at the MBA Annual Conference to share insights on their approach to AI and technology partnerships.
AI for internal efficiency
“There’s a lot of talk, but not a lot of actionable steps at this point,” Rosen noted about the current AI landscape. Mortgage Cadence is addressing this challenge by employing a strategic “inside-out” approach, integrating generative AI to enhance support and development processes. “Our goal is to make what we do better, faster, and without sacrificing quality,” Rosen explained.
In addition, Mortgage Cadence has a partnership with Accenture, which has invested significantly in AI research. “Accenture’s support gives us the ability to explore new possibilities, gain market feedback, and refine those ideas before bringing them to our clients,” Rosen shared.
Targeting non-traditional borrowers with a configurable LOS
As the market faces ongoing challenges, including the rise of non-traditional borrowers such as self-employed individuals, Mortgage Cadence is committed to helping lenders address these complexities with flexible technology. “We have a configurable LOS that lets lenders automate self-employed and non-traditional scenarios,” Rosen said.
The key, Rosen emphasized, is building a framework that respects lenders’ existing relationships while integrating new capabilities. “Lenders have their own relationships and need to maintain them,” he said. “We’re providing a framework that allows them to bring their own AI tools while offering our solution for those who need it.”
Preparing for the future: AI integration and compliance
The adoption of AI in lending comes with its own set of challenges, particularly in regards to compliance. Rosen acknowledges, “No lender wants to get stuck with a fair lending issue because they were the first to experiment with AI”.
To support their clients, Mortgage Cadence offers guidance on best practices and the importance of matching AI adoption with existing regulations. “At the end of the day, technology is just a tool. Lenders are still responsible for compliance, so it’s critical to ensure that the technology being used aligns with regulatory requirements,” Rosen stated.
What’s next for Mortgage Cadence
Looking ahead to 2025, Mortgage Cadence is focused on fine tuning its product offerings to help lenders remain competitive. One of their key initiatives is the launch of a mid-market solution called “Essentials.” Rosen explains, “We’re making an effort to make it easier for lenders to do what they need to do with less technical expertise.”
In addition to simplifying their LOS, Mortgage Cadence is investing in third-party integrations to expand its ecosystem and provide additional value to its clients. “We’re not trying to do everything ourselves, but we want to give our lenders access to the best capabilities available,” Rosen said.
A future full of opportunity despite current uncertainty
Despite the uncertainties in the market, Rosen remains optimistic about the industry’s future. “The energy here is good, but there’s definitely a sense of uncertainty,” he reflected. “That said, with new technologies and ideas emerging, there are plenty of opportunities to move the needle.”
