Cotality survey shows brokers where customers are pushing back
The use of artificial intelligence in all aspects of our lives is increasing every day. AI technology seems to improve by leaps and bounds on almost a daily basis.
This extends into the mortgage industry as well. Whether it is to improve back-office efficiencies, more easily keep in touch with former clients, or automate key processes in the mortgage industry, AI has changed the way everyone does business.
Mortgage customers are acutely aware of how AI usage has increased during the loan process. However, according to a new study by Cotality, those customers are less trusting of the technology than before.
Cotality’s AI in Housing 2026 report, released on Thursday, shows a growing distrust of AI by prospective buyers looking for a home. While 30% of people trusted AI to help them look for a home in 2025, that number has fallen to 16% in Thursday’s report.
Amy Gromowski (pictured top), head of data science at Cotality, said the drop in confidence by buyers really surprised her.
“I think what’s surprising to me is the decrease in confidence in AI from the last time we gave the survey to now,” Gromowski told Mortgage Professional America. “It’s always hard to say exactly why. We can only speculate on why the confidence is down. But that’s definitely something that stuck out to me because in my world, it’s all about AI.
“I’m seeing the progression of ideas becoming reality. It feels like it’s becoming more real and taking hold in a way that has been more theoretical earlier. So I was just surprised to see that the confidence would be going down instead of increasing.”
AI expectations are higher
One of the reasons that trust is down is that AI technology has gone from a shiny new toy to an integral part of the mortgage process. This means customers are scrutinizing the outcomes more strictly, and they are demanding that those outcomes be accurate and transparent.
“I think it’s that people are becoming more familiar with it,” Gromowski said. “They’re seeing the value. They understand the power. It’s so powerful, and I’m constantly reminded that I turn to it all the time, multiple times a day. I’m always fascinated by how it works and how powerful it is. So when you start to get more and more confident or comfortable with the idea that it is powerful, it’s likely going to be here to stay, then you go to where is it actually going to start infiltrating?”
Gromowski said mortgage pros who are integrating AI into their customer-facing processes will not only need to explain that to the customer, but also explain how that’s going to help make their lives easier. Customers also want to know that there will still be a person behind the AI to offer support.
“Because now it’s a real concept that people are wrapping their minds around,” she said. “It’s going to happen, and so will I have control? Will I know when it’s going to be a part of decisions on something very important, like buying, selling, transacting, or getting into a home?
“I think that’s where the confidence is lacking. They think, ‘I don’t want that train to move without me having control of it in some way. I just don’t want to be on the ride without having volunteered for it, knowing that it’s going to be a reality or assuming that it’s already here.’”
Brokers understanding the risks
For brokers, when considering how to use AI and the impact on customers, it comes down to how much the technology will impact the potential homebuyer. The more impact there is, the more transparency those customers expect.
“I think there’s a tiering of risk,” Gromowski said. “If there’s a level of complexity on the back end where you’ve got agents talking to agents, decisions being made that affect a consumer or that affect the businesses serving that consumer, that becomes a higher risk tier, in terms of the consequences of getting it wrong.
“But then there are other things where AI can be an extremely valuable and, I would say, benign tool in terms of just providing some efficiency. There are different tiers of risk, and all require a level of compliance and governance and oversight and transparency, but as it relates to the consumer, that’s going to matter.”
When it comes to the things that really matter to your customer, like rate and payment calculations, that’s where it still requires the human element to make sure the tech is both accurate and follows the rules.
“Are you making a decision about whether or not I can get into that home, or what my interest rate is going to be?” Gromowski said. “The things that have real financial impact and emotional impact to people, there should be much more openness and transparency about what all the reasoning and decision-making is.”
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