NEXA Mortgage and Tidalwave’s Agentic AI Partnership – Benefits, Impact, and Industry Significance
NEXA Mortgage and Tidalwave’s Agentic AI Partnership – Benefits, Impact, and Industry Significance
NEXA Mortgage is deploying an agentic AI platform to streamline loan processing and enhance broker efficiency. The strategic partnership with Tidalwave, announced at HousingWire’s 2025 AI Summit, gives NEXA’s 3,200 loan officers access to advanced AI tools. As the first brokerage to implement AI at this enterprise scale, NEXA aims to speed up approvals and improve the experience for both loan officers and borrowers.
1. Agentic AI Platform Benefits for NEXA’s Brokers and Loan Officers
NEXA’s partnership with Tidalwave centers on the Agentic AI platform (called SOLO™), which delivers practical advantages to brokers and retail loan officers by automating and enhancing many parts of the mortgage process. Key benefits include:
Automation of Repetitive Tasks: The agentic AI platform can automate up to 70% of manual tasks, from data entry to document processing, significantly reducing tedious work. For example, Tidalwave’s system auto-validates income, employment, and assets by integrating with services like Plaid, Argyle, and Truv, so loan officers no longer have to chase down paperwork. This automation frees brokers to focus on higher-value activities like advising clients and closing loans.
Intelligent Lead Qualification: The platform includes AI-driven lead screening and follow-up tools. It can quickly analyze inbound inquiries to identify high-quality leads and even use voice AI to engage prospects. This means loan officers can respond to new leads faster and more consistently, improving “speed to lead” and conversion rates. In the past, many paid leads went cold due to slow follow-up, but AI voice agents can call thousands of leads almost instantly, bridging that gap. By automating initial outreach and Q&A, NEXA’s LOs have a better shot at turning prospects into clients without letting any opportunities slip through the cracks.
One-Touch Underwriting & Instant Pre-Approvals: Tidalwave’s agentic AI provides real-time underwriting support and “one-touch” file processing. The system conducts immediate loan risk assessments by simultaneously running dual AUS (automated underwriting systems) with Fannie Mae’s Desktop Underwriter (DU) and Freddie Mac’s Loan Product Advisor (LPA). This means when a broker submits a borrower’s application, the AI has already checked it against both agencies’ guidelines. Loan officers can obtain instant pre-approval decisions and even let borrowers generate their own verified pre-qualification letters without waiting on an underwriter. According to NEXA CEO Mike Kortas, the goal is to hand lenders a file that’s 90% complete so they only need to “one-touch close” in most cases. This dramatically cuts the time to approval, saving days (or even weeks) in the process. Faster approvals not only please clients but also allow loan officers to close more loans in the same time.
Enhanced Compliance and Accuracy: The Agentic AI platform is built with compliance in mind. It uses a “hallucination-free” AI communication engine with patent-pending mortgage contextualization. In practice, this means any AI-generated communications (emails, chat answers, etc.) are constrained to accurate mortgage knowledge – the AI won’t fabricate answers. This reduces the risk of giving borrowers incorrect information. The system also performs automated compliance checks on documents and data, flagging issues or missing information. By reading and verifying data (like income or asset figures) directly from documents, the AI can resolve discrepancies up front. This not only ensures loans meet guidelines but also builds trust – loan officers can rely on the AI’s output because it cites the source documents for any findings. Overall, automating compliance tasks helps avoid human errors and keeps the process aligned with regulations, which is a huge relief for brokers who must juggle ever-changing rules.
Significant Time and Cost Savings: By automating processes, NEXA’s AI platform yields tangible efficiency gains. Lenders using Tidalwave have been able to cut costs by around $1,500 per loan through reduced labor and errors. Routine steps like income calculation, data entry, and condition clearing that might take hours of staff time are handled in seconds by AI. This lowers operating costs for the brokerage and can translate into more competitive pricing or higher compensation for loan officers. In terms of time savings, tasks that once took days can be done in minutes. Real-world examples in mortgage tech show dramatic improvements – for instance, certain AI data extraction systems have slashed loan processing times by up to 96% in pilot programs. While individual results vary, NEXA’s team expects that with agentic AI handling the heavy lifting, loans will close noticeably faster than before. Loan officers benefit by being able to close more loans with less effort, boosting their productivity.
Better Client Engagement and Experience: The platform also helps NEXA’s brokers deliver a superior experience to borrowers, which in turn makes an LO’s job easier. It offers multilingual support – borrowers can interact with the application portal, chat, and even receive texts in their preferred language (Spanish is supported first, with more languages planned). This is crucial for engaging clients with limited English proficiency; it reduces misunderstandings and eliminates the need to involve human translators. The AI can answer common borrower questions 24/7 via a chat interface, guiding them through the application and providing status updates at any time. This always-on, interactive guidance helps reduce “application anxiety” for borrowers. From the loan officer’s perspective, having more informed and reassured clients means fewer panicked phone calls and a smoother process.
Real-Time Updates and Mobile Access: NEXA’s AI platform includes a native mobile app for both borrowers and loan officers that provides real-time status updates. For example, as soon as a borrower uploads a required document or an approval milestone is reached, the loan officer gets a push notification. This immediacy keeps everyone on the same page and allows LOs to respond promptly to any issues. The mobile accessibility also means brokers can manage their pipeline on the go – checking conditions or communicating with clients from their phone – saving time and keeping transactions moving. Overall, features like instant notifications, interactive chats, and a personalized portal help maintain high client engagement throughout the loan process. Satisfied clients are more likely to complete their applications and refer others, directly benefiting a loan officer’s business.
In short, the Agentic AI platform acts as a tireless assistant for NEXA’s brokers and loan officers. It automates low-level work, speeds up complex tasks, ensures compliance, and improves borrower communication, all of which contribute to more loans closed with less effort. Mike Kortas summed it up by saying NEXA is “setting the standard for what’s possible in mortgage origination” with this technology. By leveraging AI for everything from lead gen to closing, NEXA’s team can save time, reduce stress, and serve clients more effectively than ever before.
2. How the Partnership Gives NEXA a Competitive Edge
This partnership positions NEXA Mortgage as a stand-out brokerage for loan officers and brokers who are considering a move, by offering technology and efficiencies that competitors currently can’t match. Several factors make NEXA’s offering especially compelling:
First-Mover Advantage in AI: NEXA is making history as the first mortgage brokerage to deploy agentic AI at enterprise scale. While many lenders and broker shops are only experimenting with AI, NEXA has gone all-in to implement a full-fledged platform across its 3,200+ loan officers. This sends a clear message that NEXA is a tech-forward organization. For brokers evaluating where to work, NEXA’s early adoption of a proven AI platform signals innovation and leadership. It sets NEXA apart from traditional brokerages that still rely on manual processes or piecemeal software. No other brokerage of similar size has a comparably comprehensive AI system for originations as of 2025, which makes NEXA a pioneer. Being at a brokerage that “isn’t just leading the industry in AI adoption — we’re pioneering something never done before” (in the CEO’s words) is a strong draw for ambitious loan officers.
Superior Efficiency = Higher Production: The tangible efficiency gains from Tidalwave’s platform give NEXA LOs a chance to close loans faster and with less friction than at other shops. For instance, the dual-AUS one-touch underwriting process can turn what might be a week of back-and-forth at another brokerage into an instant approval at NEXA. By automating 70% of the workload on each file, a NEXA loan officer can handle a larger pipeline without sacrificing quality. This means the potential for higher personal production (and commissions) compared to an LO at a competitor who spends hours on clerical tasks. It also means deals are less likely to fall through due to delays or errors. In a purchase market where speed can make or break a deal, NEXA’s AI could help loan officers close loans in days instead of weeks, giving them an edge in winning business. Overall, productivity tools like this can be a big selling point – a broker might ask, “Do you want to close 5 loans a month with headaches, or 8 loans with an AI assistant handling the grunt work?” At NEXA, the latter becomes more feasible.
Enhanced Borrower Experience (and Referrals): NEXA’s AI-enhanced borrower experience (e.g. multilingual support, mobile app, real-time updates) is not just good for clients – it’s good for loan officers’ reputations and referral business. Borrowers working with NEXA get a modern, seamless process with less confusion and faster answers. This “reduces application anxiety” and keeps customers in the loop at all times. A smoother process means happier clients who are more likely to recommend their loan officer to friends and family. Competing brokers who lack these tools might deliver a clunkier experience (with lots of paper, phone tag, and waiting), which can reflect poorly on the LO even if they work hard. Thus, NEXA LOs can differentiate themselves in the market by saying they have a high-tech platform that makes mortgages easy for the customer. In recruitment, management can point out that NEXA’s client satisfaction scores and turnaround times will outshine competitors, helping LOs build their business. For example, industry data shows the average mortgage takes ~45 days to close with 500 pages of paperwork. With AI streamlining steps, NEXA aims to shrink that timeline considerably. Faster closings and fewer mistakes not only impress borrowers but also real estate agents and referral partners – a key advantage when building a book of business.
Cost Savings and Better Pricing: Automating processes can reduce loan manufacturing costs by roughly 14% per loan on average. This has two implications for competitive edge. First, lower operational costs at NEXA could allow the brokerage to offer more competitive pricing or broker compensation. NEXA might pass some savings to borrowers as lower rates/fees, helping LOs win deals against other lenders’ quotes. Alternatively (or additionally), NEXA can afford to pay its brokers well while maintaining margins, because the AI makes each loan cheaper to produce. NEXA already was known for aggressive compensation structures, and pairing that with efficiency gains is compelling. Competing firms that are less efficient may struggle to match NEXA’s pricing or comp without cutting into their profits. In essence, NEXA can use technology to do more with less, and that efficiency becomes a recruiting and competitive advantage – either in better pricing to consumers, better pay to LOs, or both.
Recruiting Appeal and Growth: By partnering with Tidalwave, NEXA has a shiny new value proposition to pitch to recruits. Top-performing loan officers often evaluate a brokerage by its tech stack and support. NEXA can now demonstrate a cutting-edge platform that “automates up to 70% of manual tasks” and lets LOs focus on selling. This is a strong recruiting tool: it shows that NEXA invests in its people by giving them the best tools to succeed. In fact, other lenders who adopted Tidalwave’s AI noted it helped them “recruit top talent” by showcasing a tech-forward approach. NEXA’s leadership can make a similar case – a loan officer who joins NEXA will be equipped with an AI assistant handling paperwork, a mobile app for their borrowers, and an array of integrations that simplify their workflow. In contrast, a competitor brokerage might offer just a basic LOS and expect the LO to fend for themselves with manual work. Especially for younger, tech-savvy LOs (or any LO tired of doing duplicate data entry), this can be a make-or-break factor. The partnership essentially elevates NEXA’s platform to a level on par with or beyond what many large retail lenders have, but within a broker model. As the nation’s largest brokerage already, NEXA is now differentiating itself further by being the place where brokers have AI at their fingertips. This unique combination of scale and innovation is difficult for smaller shops to replicate and even gives big bank lenders a run for their money.
Comparison to Competitors: To put NEXA’s offering in context, consider a few comparisons. Many brokerage firms still rely on legacy systems where loan officers must manually upload documents, enter data into multiple portals (borrower application, credit, pricing, AUS, etc.), and wait for underwriters to review files. By contrast, NEXA’s LOs use a single AI-driven platform that handles document intake, automatically pulls credit and verifications, runs dual AUS, and returns an approval checklist in one flow. Competitors might need separate logins for DU and LPA, whereas NEXA’s system does both with one click. Likewise, if a competing LO wants to serve a Spanish-speaking borrower, they might struggle with translation or have to find bilingual support. NEXA’s platform can instantly switch the borrower’s interface to Spanish and even answer questions in Spanish, capturing a market that others might miss. In terms of lead management, some retail lenders have started using AI dialers or chatbots, but brokers typically haven’t had access to those tools. NEXA providing AI follow-up for leads means its brokers can respond like a call center would, even though they’re individual operators – a huge leg up in converting internet leads or inquiries. Finally, on compliance and accuracy, competitors without AI might risk more human errors or spend more time in quality control. NEXA’s AI automatically flags inconsistencies and ensures data integrity (for example, it “knows which documents are needed” for each condition and requests them from the borrower proactively). This proactive approach can result in cleaner files and fewer underwriting conditions. In essence, NEXA’s agentic AI platform gives it capabilities usually seen at top-tier fintech lenders, all within a broker framework. This makes NEXA extremely attractive to loan officers who want the best of both worlds: the entrepreneurial freedom of a brokerage and the high-tech infrastructure of a modern lender.
Metrics and Recognition: NEXA is already the nation’s largest mortgage broker by headcount, with operations in 48 states plus Puerto Rico. Adopting Tidalwave’s AI could further boost its production and industry standing. If each NEXA LO can close more loans thanks to AI, NEXA’s overall volume and market share could grow, reinforcing its #1 position. From a recruiting standpoint, being the largest and fastest-growing brokerage is itself a draw – it indicates stability and success. Now, coupling that with a headline-grabbing innovation (first to deploy enterprise AI), NEXA has a strong narrative for why an LO should join. It’s worth noting that this partnership was announced at a high-profile industry event (HousingWire’s AI Summit) and covered in major industry media, so the news is reaching the broader mortgage community. This kind of positive press – positioning NEXA as an innovator – can make an LO proud (or at least intrigued) to be affiliated. When comparing offers, a broker might see NEXA as more likely to thrive in the future due to its tech investment, versus a competitor that might be slower to adapt. In short, NEXA’s value proposition now spans strong compensation, nationwide reach, and unparalleled technology – a combination that solidifies its status as a top destination for brokers and loan officers.
In summary, the Tidalwave partnership gives NEXA a distinct competitive edge. It allows NEXA to operate with the efficiency and polish of a cutting-edge fintech lender while maintaining the flexibility of a broker. Brokers and loan officers who join NEXA get to leverage tools that can make them more productive and their customers happier – which ultimately means more business and income for those LOs. In a landscape where many firms are struggling to modernize, NEXA’s leap forward with AI positions it as a forward-thinking leader and an attractive home for talent.
3. Recent News and Coverage of the NEXA–Tidalwave Partnership
The partnership between NEXA Mortgage and Tidalwave’s Agentic AI platform was officially announced on August 12, 2025. It was unveiled live at HousingWire’s AI Summit and accompanied by a press release from NEXA Mortgage LLC. The news quickly garnered attention in the mortgage industry press, given its significance as a first-of-its-kind move for a brokerage.
Press Release Highlights: In NEXA’s press statement (August 12, 2025), the company emphasized that it is “the nation’s largest mortgage brokerage” (over 3,200 loan officers) and is making history as “the first to deploy enterprise-scale agentic AI” in the mortgage arena. The rollout is slated to cover all of NEXA’s loan officers across 48 states and Puerto Rico. CEO Mike Kortas’s remarks in the release underscored NEXA’s pioneering stance: “We’re not just leading the industry in AI adoption — we’re pioneering something that has never been done before”, setting a new benchmark for mortgage origination technology. Diane Yu, Tidalwave’s founder and CEO, was also quoted highlighting NEXA’s forward-thinking approach and calling them an ideal partner to introduce this breakthrough technology. The press release detailed some of the platform’s capabilities – such as intelligent lead qualification, automated document processing, real-time underwriting checks, and multilingual client communication – all aimed at boosting efficiency and improving the broker and borrower experience. It also noted the integrations with verification services and the dual AUS feature, which can cut down redundant processes. The official messaging made it clear that NEXA sees this as a transformational step that will allow its brokers to close loans faster and more cost-effectively than ever before.
Trade Media Coverage: The partnership news was prominently covered by HousingWire, a leading mortgage industry publication, on the same day. HousingWire’s article by Sarah Wheeler echoed the significance of the deal, with the headline “NEXA Mortgage partners with Tidalwave to bring Agentic AI platform to brokers”. The coverage highlighted that the announcement was made at the HW AI Summit, signaling the industry’s keen interest in AI solutions. Key points from the article included a rundown of the SOLO™ platform’s features – e.g. automated document processing, AI-driven communication that avoids hallucinations, and the dual AUS simultaneous submission to Fannie/Freddie systems. The article also cited the statistic that lenders using Tidalwave have automated up to 70% of manual tasks and cut costs by as much as $1,500 per loan due to the platform. This provided third-party validation of the efficiency claims. Additionally, HousingWire reported Mike Kortas’s perspective that as a broker, he searched for an AI solution tailored to brokers (who don’t have in-house underwriters) and finally found a partner in Tidalwave who “listened” to their needs. It described how NEXA’s clout as the largest broker helped get wholesale lender partners on board with the concept, enabling a one-touch close on most files. The article noted improvements for borrowers as well – reducing application anxiety through AI guidance, securing documents in an encrypted portal, speeding up approvals, and offering a mobile app for real-time updates. HousingWire’s coverage essentially painted the picture that NEXA is at the forefront of applying AI in mortgages, and it positioned the move as potentially industry-changing.
Other industry outlets and newsletters also picked up on the news. While as of this writing the HousingWire piece is the primary in-depth coverage, the story is likely to be featured in upcoming issues of National Mortgage Professional, Scotsman Guide, and other trade journals that track mortgage technology. The partnership aligns with a broader trend of AI discussion in the industry, so it wouldn’t be surprising if it’s mentioned in analyses of mortgage tech trends for 2025. Even social media and forums for loan officers have started buzzing about NEXA’s AI rollout, as recruiters and LOs discuss what it could mean. The bold step by NEXA may prompt questions at competitor firms – e.g., “Is our company doing something similar?” – which further fuels media interest.
It’s also worth noting that this NEXA-Tidalwave deal follows on the heels of Tidalwave’s earlier partnerships with a few mortgage lenders. In May 2025, Tidalwave announced strategic integrations with First Colony Mortgage and Mortgage Solutions Financial, two regional lenders, to deploy its AI POS system. Those smaller-scale partnerships demonstrated the technology’s value (such as instant pre-approvals and multilingual support) but on a more limited basis. The NEXA partnership, by contrast, is an enterprise-wide implementation at the largest brokerage – a significant scale-up. Tidalwave’s prior integration with ICE Mortgage Technology’s Encompass platform (announced around the same time) also laid groundwork by making it easier to plug their AI into lenders’ existing systems. These pieces of news provided context that Tidalwave’s platform was gaining traction. Now, the NEXA deal represents the tipping point that has really put Tidalwave – and the concept of “agentic AI” – on the map in a big way.
In summary, recent press coverage has portrayed the NEXA–Tidalwave partnership as a major milestone in mortgage tech. Headlines emphasize that NEXA is the first brokerage to do this, and articles detail the expected benefits (efficiency, cost savings, faster closings, better borrower experience). The timing of the announcement at an AI Summit and the involvement of known industry figures (Kortas and Yu) have only added to the buzz. This story is being watched closely as a barometer of how AI might reshape mortgage operations. If successful, it’s likely to spur similar announcements from other companies – a point that industry journalists have hinted at when noting NEXA “setting the standard for what’s possible” going forward. For now, NEXA and Tidalwave are enjoying a moment in the spotlight as innovators at the forefront of the AI wave.
4. Broader Impact of AI (Agentic AI) in the Mortgage Industry
The NEXA-Tidalwave partnership is part of a larger movement towards artificial intelligence in the mortgage industry, with “agentic AI” emerging as a particularly transformative approach. Broadly speaking, AI has vast potential to streamline mortgage lending, but it also comes with challenges. Here we discuss the industry-wide trends, use cases, and hurdles of adopting AI in mortgage – with a focus on agentic AI like the platform NEXA is deploying.
What is Agentic AI? Agentic AI refers to AI systems that can act as autonomous “agents,” making decisions or completing goals independently without constant human guidance. In the mortgage context, an agentic AI isn’t just passively analyzing data; it’s actively performing tasks that normally require human action – such as conversing with customers, verifying documents, or cross-checking guidelines. These systems combine advanced machine learning (like large language models or predictive algorithms) with process automation. They can dynamically respond to complex scenarios (e.g. a borrower asking detailed questions, or an application with inconsistent data) and take appropriate next steps. For example, an agentic AI platform might automatically recognize that a borrower’s uploaded pay stub is in Spanish and then both translate it and analyze the income figures against guidelines, all on its own. This level of “initiative” is what differentiates agentic AI from simpler automation. It’s like having a digital colleague that can carry out multi-step tasks and only involves a human when necessary. The rise of agentic AI is enabled by recent leaps in AI capabilities – especially generative AI and natural language processing – which allow systems to handle unstructured inputs (like documents or speech) and interact in a human-like way. Industry experts say that agentic AI can “instantly accomplish a full range of mortgage-related tasks”, from voice communications to data recognition, substantially reducing processing times and costs. In short, agentic AI is poised to take mortgage automation beyond rote tasks and into more intelligent decision-making roles.
Adoption Trends: The mortgage industry has historically been slower than other sectors in embracing automation, but AI adoption is now accelerating rapidly. Recent surveys and studies illustrate this trend. In 2024, about 38% of lenders reported using AI/ML tools in their mortgage operations, up from just 15% in 2023 – a huge jump in one year. Fannie Mae has projected that over half of lenders (55%) will have adopted AI software by the end of 2025, reflecting a clear industry shift toward digital transformation. Lenders are recognizing that AI is no longer experimental but quickly becoming essential to stay competitive. We are seeing both large and small players move in this direction. Major mortgage companies like Rocket Mortgage, United Wholesale Mortgage (UWM), and Guaranteed Rate have invested heavily in in-house AI development, leveraging their cash reserves to build proprietary tools. For example, UWM announced plans to use Google’s AI to improve processes for its network of brokers, and Rocket has been pouring millions into tech innovation (Rocket’s parent spent over $37 million on tech in one quarter, some of which is directed at AI initiatives). On the other end, mid-sized and smaller lenders (and brokerages) are turning to third-party AI providers due to cost and expertise constraints. This is exactly the niche where companies like Tidalwave come in – offering an out-of-the-box AI platform so that even firms that can’t build their own AI from scratch can still benefit. The NEXA partnership exemplifies this model: a large brokerage partnering with a fintech startup to leapfrog into AI-enabled lending. Analysts observe that tough market conditions (higher rates, lower volumes) in 2023–2025 have ironically spurred AI interest – lenders see AI as a way to cut costs and improve margins when every basis point counts. The Stratmor Group found nearly half of lenders are also using robotic process automation, and a strong majority of new homebuyers expect a mostly digital process. All this indicates that AI adoption in mortgage is reaching a tipping point where it will be standard, not a novelty. We’re likely to see many more partnerships and AI tool rollouts in the coming months as firms race not to be left behind.
Key AI Use Cases in Mortgage: AI is being applied across the mortgage lifecycle, from customer acquisition to servicing. Some prominent use cases include:
Document Analysis and Data Extraction: Arguably the biggest immediate impact of AI is in document processing. AI can scan and interpret bank statements, pay stubs, W2s, tax returns, and other required documents far faster than a human. Modern AI can auto-fill loan application fields from uploaded docs and flag any discrepancies. This has turned what used to be hours of manual review into minutes. For example, AI-driven systems can verify income and assets in real-time by reading documents, enabling near-instant validation for underwriting. This not only speeds up approvals but can also improve accuracy (since the AI can cross-check values and calculations without fatigue). Many lenders are integrating such capabilities either via specialized vendors or within platforms like Tidalwave. Reducing the paper chase in mortgages is a huge win – as one article put it, “no more paperwork mountains, no more weeks-long waiting periods” when these tools are fully utilized.
Intelligent Chatbots and Voice Assistants: Another burgeoning use of AI is in customer interaction, through chatbots or voice-based assistants. These AI agents can handle inbound inquiries from borrowers, provide personalized information, and guide them through the application. For instance, some lenders have launched voice AI agents that call leads or answer phone calls. A startup called Kastle developed an AI voice system to follow up on mortgage leads, addressing the issue that many loan officers weren’t calling leads quickly enough. These voice AIs can have surprisingly human-like conversations – the technology has improved to the point that callers may not realize it’s an AI, especially if it speaks naturally and can answer detailed questions. On the chat side, lenders like Better.com introduced an AI assistant (“Betsy”) to talk to customers and collect info, and Beeline created a chatbot that remembers past conversations to better assist returning users. Tidalwave’s platform itself incorporates an AI chat that interacts with borrowers in a friendly, contextual way (including 24/7 answers and even encouragement, like congratulating them when a step is completed). The ultimate vision, as some experts suggest, is that borrowers could “have full-blown conversations with licensed AI agents who lay out loan options in seconds”. We’re not fully there yet in terms of licensing AIs, but conceptually it’s on the horizon (there’s even talk of AI obtaining NMLS licenses one day to act as virtual loan officers). For now, these AI assistants handle routine FAQs, status updates, and initial sales calls, which offloads a lot of time from human staff and provides quicker responses to customers.
Automated Underwriting and Pre-Qualification: AI is also being used to enhance underwriting decisions. This includes the dual-AUS approach we discussed with Tidalwave – running rule-based engines faster and in parallel – but goes further into using machine learning for risk assessment. Some lenders use ML models to supplement traditional credit metrics, predicting default risk or identifying conditions to add. AI can instantly evaluate a borrower’s profile against myriad criteria (DTI, LTV, credit patterns, etc.) and suggest loan options or flag risks. An exciting development is instant pre-approvals: because AI can crunch the data so quickly, borrowers can get a preliminary approval in minutes rather than days. According to one report, certain AI implementations led to as much as a 96% reduction in loan application processing time, enabling near-instant pre-approval letters. We see this in practice with Tidalwave’s system allowing borrowers to self-serve a pre-qualification letter any time, day or night. Beyond speed, AI can also improve consistency in underwriting – the same file should get the same result each time, reducing human variability. However, many lenders still keep a human in the loop for final sign-off (both for compliance and peace of mind). Over time, as regulators grow comfortable, we might see AI handling more of the credit decision autonomously, at least for straightforward cases.
Risk Management and Fraud Detection: Machine learning excels at pattern recognition, which is being applied to detect fraudulent or high-risk applications. AI can cross-verify information (does the income stated match the income on uploaded paystubs? Are there inconsistencies in the borrower’s history?) and look for anomalies that a human might miss. For example, AI models can flag if multiple applicants are using the same phone number or if a document looks doctored. They can also predict early which loans are likely to face issues, so lenders can address them proactively. These systems essentially act as a second set of eyes focused on fraud and data integrity, which is increasingly important as fraud tactics evolve. By catching red flags before a loan funds, AI helps protect lenders from losses and ensures genuine borrowers don’t face delays due to undetected issues.
Multilingual and Inclusive Support: A noteworthy use of AI in mortgages is breaking language barriers and improving accessibility. Traditional mortgage processes have been very English-centric and jargon-heavy. AI language models can translate and simplify communications in real-time. As mentioned earlier, Tidalwave launched a Spanish-language AI feature to assist Hispanic borrowers – addressing a segment where nearly 1 in 4 report language as a barrier in the mortgage process. This kind of AI-driven translation and cultural context adaptation is a game-changer for inclusivity. Other firms might follow with support for more languages and even tailoring to different financial literacy levels. The broader impact is that AI can help extend homeownership opportunities to underserved communities by making the process easier to understand and navigate. This aligns with industry DEI (diversity, equity, inclusion) goals – for instance, National Mortgage Professional highlighted Tidalwave’s Spanish integration as a way to support Hispanic homebuyers in a meaningful way.
Challenges and Considerations: Despite the promise, adopting AI – especially agentic AI – in the mortgage industry comes with challenges:
Regulatory Compliance and Oversight: Mortgage lending is heavily regulated, and any AI used must comply with fair lending laws, data privacy rules, and a host of other regulations. Regulators and lenders alike are cautious that AI decisions or communications could inadvertently violate rules or introduce bias. There is an emphasis on transparency and explainability. As Diane Yu from Tidalwave noted, lenders don’t want an AI to render a credit decision in a “black box” – “They want AI to list the reasoning … and tell you the document it finds information from”. This reflects the need for AI outputs to be auditable. Agentic AI systems must be built so that every action they take is logged and can be explained after the fact (especially important if a borrower is denied – the lender must explain why, per regulations). Compliance also extends to consumer communications – AI cannot promise anything or give advice that runs afoul of licensing (e.g., unlicensed AI giving what could be seen as financial advice is a grey area). To navigate this, companies are establishing frameworks where AI suggests or does tasks, but a human ultimately reviews certain critical items. Over time, as comfort grows and if the AI is consistently accurate, the human oversight might reduce, but likely there will always be some level of human accountability for compliance. Additionally, new guidelines are expected from regulators about the use of AI in credit underwriting – the industry is actively engaging with policymakers to ensure AI use is responsible.
Data Security and Privacy: AI systems require a lot of data, including very sensitive personal and financial information from borrowers. Ensuring that data is securely handled is paramount. Platforms like Tidalwave address this by using encrypted digital document storage and transmission, which enhances security compared to, say, emailing documents around. Nonetheless, any centralized AI system could become a target for cyberattacks, so robust security and regular audits (like SOC 2 compliance) are necessary. Privacy laws like GDPR and CCPA also impose requirements on automated decision-making and data usage that lenders must heed. For instance, if an AI denies a loan based on certain data, consumers might have a right to a human review or an explanation under some regulations. Lenders adopting AI need to navigate these and possibly provide opt-outs or disclosures to borrowers. Essentially, AI adoption must go hand-in-hand with strong data governance in the mortgage industry, or else firms risk legal and reputational repercussions.
Integration with Legacy Systems: Many mortgage companies have a patchwork of legacy systems (LOS, CRM, servicing systems). Integrating a new AI tool into these workflows can be challenging. Tidalwave’s solution mitigates some of this by integrating with major LOS platforms like Encompass, MeridianLink, Calyx, etc., via modern APIs. Still, a lender or brokerage needs to carefully implement the AI so it complements (and doesn’t break) existing processes. Change management is a big part of this – getting all the pieces (credit bureaus, pricing engines, document repositories, etc.) to work seamlessly with the AI platform. The broader point is many lenders are eager for AI but face the practical challenge of connecting it to their operations without causing disruption. This is why partnerships and vendor solutions are popular; they often come pre-built with industry integrations, easing the burden on a lender’s IT department.
Workforce Impact and Training: The introduction of AI invariably raises questions about the impact on jobs. In the mortgage industry, roles like loan processors, underwriters, and assistants could see their tasks change significantly. Rather than eliminating these roles entirely, AI tends to shift the focus: routine tasks get automated, and humans concentrate on exceptions, relationship management, and complex problem-solving. Nonetheless, there may be some reduction in need for purely administrative staff over time. Companies need to train their workforce to work with AI – for example, loan officers should know how to interpret AI findings and use the AI tools to their advantage. There’s a learning curve to trust the AI’s outputs and to understand its limitations. Culturally, some experienced professionals may be initially wary of relying on AI (fearing mistakes or job displacement). Successful adoption requires clear communication that the AI is there to assist, not replace, and showing employees how it makes their jobs easier. Over time, new roles might emerge – such as “AI mortgage advisors” or specialists who oversee the AI systems. As one commentary mused, the mortgage workforce might evolve into a blend of human employees and a “licensed AI workforce… collaborating hand in hand”. That’s a futuristic vision, but it underscores the need to integrate AI into team structures in a thoughtful way. So far, the industry sentiment is that human expertise remains vital; AI can do a lot, but humans are needed to handle nuanced judgment calls, to build personal trust with clients, and to override the AI when something unusual comes up. The ultimate outcome could be a more efficient workforce where each human employee is amplified by AI assistants – much like how NEXA’s LOs will operate going forward.
Borrower Trust and Acceptance: Another challenge is how consumers perceive AI in the mortgage process. Interestingly, consumer attitudes have been somewhat mixed. On one hand, borrowers clearly crave speed and digital convenience – a 2025 survey found 77% of recent homebuyers expect their next mortgage to be totally digital and a majority were very satisfied with technology in the process. This suggests that if AI makes things faster and easier, borrowers will welcome it. On the other hand, some surveys indicate hesitation if the borrower is aware that AI (as opposed to a human) is involved. For example, a late-2024 survey by Cloudvirga found 60% of home buyers said they might look elsewhere if they knew a lender used AI in processing. This wariness likely comes from fear of the unknown – concerns about mistakes or simply discomfort with a non-human handling such a major financial transaction. To address this, lenders are being transparent but also emphasizing the benefits. Many AI systems introduce themselves as AI (to be ethical), but they are designed to be so natural and helpful that the borrower quickly becomes comfortable. As one AI CEO noted, if the AI voice is polite and effective, people often “forget they’re talking to an AI” because the experience is smooth. The key for broader acceptance will be education and gradually building trust. Demonstrating that AI can handle tasks accurately and securely over time will ease consumer concerns. Also, maintaining easy access to human support when the customer wants it is crucial – a hybrid approach. The broader impact here is that mortgage lenders must manage the human-AI interface carefully to ensure borrowers feel cared for, not passed off to a robot. When done right, AI can actually enhance the feeling of personalization (since it can, for instance, remember a borrower’s preferences and be available anytime). But lenders will need to keep a pulse on customer sentiment and be ready to adjust how they deploy AI in response to feedback.
The Road Ahead: The potential of AI in the mortgage industry is enormous. We’re likely just at the beginning of what agentic AI can do. As these systems learn and get access to more data, they could handle even more complex parts of the mortgage process – possibly even portfolio management or secondary market tasks like assessing loans for securitization. One expert from MISMO (the industry standards group) mentioned that if we can trust the data from the start, we can streamline everything “all the way from origination to securitization”. This hints at a future where a mortgage loan, once taken in by an AI, flows through every stage (origination, underwriting, closing, selling to investors, maybe even servicing) with minimal human friction. Realistically, there will always be oversight and critical thinking needed from humans, but many predict a significantly shortened loan cycle – perhaps loans could close in mere days consistently. The competitive landscape will also shift: lenders who embrace AI may dominate with lower costs and faster service, potentially squeezing out those who don’t adapt. We might see partnerships similar to NEXA-Tidalwave become commonplace, or acquisitions of AI firms by big banks to secure their technology. Importantly, collaboration on standards and fairness will be needed – ensuring AI doesn’t inadvertently discriminate (e.g., via biased data) and that it complies with all fair lending laws. The industry is actively working on these issues, with groups like MISMO and regulators closely monitoring pilot programs.
In conclusion, AI – and agentic AI in particular – is reshaping the mortgage industry by automating the most cumbersome parts of the process and enabling new ways to engage customers. Early adopters like NEXA Mortgage are demonstrating what’s possible: faster closings, cost savings, and better experiences. As AI tools prove their worth, adoption will likely surge, and within a few years using AI might be as standard as using an LOS or an online application is today. Challenges around compliance, integration, and trust are being addressed through careful design and oversight. The broader impact will be a more efficient mortgage market: one where getting a home loan is less about drowning in paperwork and more about quick, intelligent interactions – where human professionals work alongside AI agents to deliver optimal outcomes for borrowers. The journey has begun, and partnerships like NEXA and Tidalwave are paving the way for the industry’s AI-powered future.
Sources:
HousingWire – “NEXA Mortgage partners with Tidalwave to bring Agentic AI platform to brokers” (Aug 12, 2025)
HousingWire – Additional details from interview with NEXA’s CEO on the partnership
BusinessWire – “Agentic AI Mortgage Startup Tidalwave Partners with First Colony Mortgage and Mortgage Solutions” (May 2025), on AI platform capabilities and cost savings
Tidalwave Press Release via BusinessWire – Background on Tidalwave’s AI platform and integrations
National Mortgage News – “Agentic AI is turning into the next big mortgage trend” (Apr 22, 2025), insights on agentic AI definition and compliance considerations
Perpetio Blog – “How AI is Disrupting the Mortgage Game in 2025” (2025), statistics on AI adoption among lenders and efficiency gains
National Mortgage News – “How mortgage lenders are thinking about AI in 2025” (Dec 17, 2024), on industry adoption attitudes and investment costs
Tidalwave (Product Site) – Features of the SOLO™ agentic AI mortgage platform (multilingual support, dual AUS, mobile app, etc.)
