A brave new world of lending – powered by AI

Artificial intelligence has become the mortgage industry’s most powerful and misunderstood new ally. While some lenders are chasing the hype, others are quietly transforming their operations with measurable, data-driven automation and AI. Few leaders bridge both the business and technology sides of this transformation as fluidly as Rajan NairCEO of Indecomm, a provider of the Genius AI suite that enables intelligent automation throughout the loan lifecycle. In this conversation, Nair discusses the difference between hype and habit, why automation and AI are a marathon, and how lenders can build trust in AI, one workflow at a time.

Housing Wire: Many lenders say they are “automating” and “leveraging AI,” but the progress still feels incremental. What’s holding back lenders?

Rajan Nair: Lenders often have a dozen different systems, and many don’t talk to each other. Adding automation or AI without standard processes or connected systems can make things even more confusing.

Many lenders are also cautious because previous transformations exceeded budget and caused new problems. This is understandable but a shame because if you don’t use it at all, you’re likely to fall behind. I think it’s important to get over that fear.

One way to address both challenges is to map how data flows through the origination process and across all systems. Seeing the full picture makes it easier to fix gaps and streamline operations. Then the addition of AI will make sense and have an impact.

HW: You’ve mentioned research showing that most AI pilots fail. How does Indecomm avoid that pitfall?

Nair: We start with process design, not model design. We map how the loan actually moves through the lender’s ecosystem, identify bottlenecks and automate those segments first.
We are also responsible for the ‘last mile’, focusing on the 20% of work that models often miss. Because 20% of missing documents does not equal 20% of the effort, this equals half your costs. We strive for that last mile accuracy so that our customers see it real ROIno theoretical results.

HW: What is an area you think GenAI will address? Calm make the biggest impact next year?

Nair: GenAI has endless possibilities, but I believe its greatest impact will be in improving loan decision-making and assessments across the entire loan lifecycle, from pre-financing to post-closing, servicing and capital markets. Gen AI doesn’t just process data; it’s spotting patterns and highlighting potential problems that might otherwise go unnoticed. This gives lenders a smarter way to approach underwriting and loan reviews, turning insights into action. When you add pragmatic AI to the mix, it delivers practical, reliable solutions that improve processes and outcomes.

HW: You have described Indecomm’s approach as ‘glass-box AI’. How do you make that a reality for users?

Nair: Transparency creates trust. Our Genius suite of automation solutions gives the user full visibility into the data points and documents that influenced the output, such as a condition or a finding. This level of visibility is critical to driving adoption. We don’t expect users to blindly trust the machine. Instead, we’ll show you why it came to that conclusion. When they can see the logic and verify the source, trust naturally follows.

HW: When you talk to CEOs about AI strategy, what separates successful adopters from those who drop out?

Nair: The successful one assign ownership. They don’t delegate AI to IT; they turn it into a business transformation. They define metrics, number of touches per file, decision time, defect rate and measure ruthlessly. Those hesitant to embrace AI should remember that you can’t tie AI to a broken process. You must first get the process right, otherwise the automation will only go in the wrong direction more quickly.

Something to keep in mind: AI and automation are not events; they condition. The lenders that win are the ones that consider AI and automation adoption as part of their policies operating rhythmnot a one-off project.

HW: Agentic AI is the latest buzzword. What role do you see playing in the mortgage industry?

Nair: Agentic AI is quite powerful and has real potential inside guardrails. Imagine a virtual assistant that tracks conditions or proactively identifies missing verifications. That is a productivity gain. But we’re not ready for agents to make credit or compliance decisions. For now, think of agent AI as an assistant, not an approver. Man remains the decision maker; the AI ​​simply brings them better information faster.

HW: Five years from now, what is your biggest prediction for AI in mortgage banking?

Nair: We’re heading towards componentized lending. Each stage, from request to closure, will function as an interconnected API service. GenAI runs quietly in the background, summarizing, classifying, and reasoning about the services. The winners won’t be the loudest “AI-first” companies; they will be the lenders who have built resilient, data-driven workflows that can evolve with technology.

HW: Final thoughts for executives still hesitant to take the plunge?

Nair: Inertia is the real risk. Waiting for perfection means missing the window. Start small, measure everything and design with transparency in mind. AI won’t replace people, but people who know how to use AI effectively will replace those who don’t. This is the beginning of one brave new world for mortgage banking, and it is made possible by data, trust and accountability.