At the MBA Annual Conference in Denver, Diego Sanchez sat down with Michael Sachdev, CEO of Snapdocs, for an exclusive Instant Impact episode to discuss the company’s strategy for AI and its role in transforming the mortgage experience for both lenders and borrowers.

From legal to tech: Sachdev’s path to Snapdocs

Michael Sachdev shared his background, highlighting his transition from law to solar finance and eventually to the mortgage tech industry. “I was looking for similar problems, at the intersection of regulation, tech, and consumer finance, but at a greater scale,” Sachdev said, explaining his decision to join Snapdocs three years ago.

Now as CEO, Sachdev is focused on helping lenders use AI to solve specific challenges and improve operational efficiency in the back office.

AI’s role in addressing inefficiencies

Sachdev explained that while AI is a popular buzzword, its application needs to be deliberate and targeted. “AI, to me, is just a tool,” he said. For lenders, the key is to analyze their P&L to understand where inefficiencies lie and then determine if AI can help resolve those specific issues.

Snapdocs sees back-office operational processes as the ideal starting point for AI. Sachdev noted two main reasons: first, these processes are hidden from the borrower, so mistakes won’t directly impact the customer experience. Second, these tasks are often repetitive and high-velocity, making them a better fit for AI.

“Pursuing cost reduction and efficiency in the back office is the place to start,” Sachdev emphasized. “You can avoid many of the regulatory and compliance issues if you focus on those areas first.”

Specific AI applications: Closing documents and CD balancing

Snapdocs has embedded AI into every product they offer. Sachdev highlighted their closing product, which utilizes AI to automatically classify documents, identify required signatures, and detect notary stamps. With millions of pages processed and a 99.9% accuracy rate, Snapdocs’ AI solutions significantly reduce manual work.

The company is also rolling out a new product for CD balancing. This product extracts fees from the lender’s and title’s closing disclosures, compares them, and identifies discrepancies. “Closers are spending two to three hours a day balancing CDs at month-end,” Sachdev noted. “AI can automate this, allowing employees to focus on higher-value tasks.”

Misconceptions about AI in lending

Sachdev addressed common misconceptions around AI adoption, pointing out that lenders often have an overly broad idea of what AI can achieve. “I hear lenders say, ‘I’m going to throw AI at underwriting,’ but that’s too general,” he said. The key is to identify specific tasks that can be automated or improved with AI and ensure that the solution is accurate and effective.

Facilitating the entire housing ecosystem

Beyond working with lenders, Snapdocs aims to improve the entire housing ecosystem. Sachdev explained that the closing process involves complex collaboration between lenders and title companies, each responsible for reviewing and re-reviewing each other’s work. This back-and-forth not only increases cycle times but also introduces errors.

“When you bring AI to the closing and have both parties trusting the platform, you can shorten the cycle time and reduce errors,” Sachdev said. Their philosophy is that by improving trust and efficiency, Snapdocs is helping lenders shorten the time from application to close and enhance the borrower experience.

2025 and beyond

As Snapdocs continues to expand its AI capabilities, Sachdev envisions a more streamlined, cost-effective closing process that benefits both lenders and borrowers. By addressing inefficiencies in the back office and enhancing collaboration in the housing ecosystem, Snapdocs is setting the stage for an improved mortgage experience.