Building a Future-Proof Mortgage Industry: Insights from a 28-Year Veteran

At the recent HousingWire AI Summit, Jason Bressler, Chief Technology Officer at United Wholesale Mortgage (UWM), shared his insights on the transformative role of technology in the mortgage industry. With a career spanning 28 years in IT and the mortgage sectors, Bressler provided valuable perspectives on leveraging Artificial Intelligence (AI) to enhance business processes and drive innovation.

A Singular Focus on Wholesale Lending

UWM has distinguished itself as the leading wholesale mortgage lender in the country by concentrating exclusively on the wholesale lending market. Unlike other firms that diversify into retail or ancillary services, UWM’s focused approach has enabled it to significantly increase the broker market share, rising from a mere 4-5% post-2008 financial crisis to over 26% today.

The Build vs. Buy Philosophy

A key principle at UWM is the "build versus buy" strategy. This philosophy is rooted in maintaining control over technology and processes, allowing for customized solutions that meet specific business needs. Bressler oversees a team of over 1600 IT professionals who develop, support, and secure all systems internally. This approach has been pivotal in integrating advanced technologies like AI and automation into UWM's operations, ensuring that the company remains agile and innovative.

Harnessing AI for Operational Excellence

AI and automation are not just buzzwords at UWM; they are integral components of the company's operational strategy. Bressler emphasized that AI is about enhancing human capabilities rather than replacing them. At UWM, AI is utilized for tasks such as automating underwriting processes and improving customer interactions through sophisticated chatbots. This technology not only increases efficiency but also enhances the overall customer experience.

Delegation and Technology: A Winning Combination

Bressler shared a personal anecdote about the importance of delegation in achieving professional success. By effectively delegating tasks, leaders can focus on strategic initiatives that drive business growth. At UWM, this approach is supported by robust technology, allowing staff to concentrate on complex issues while automated systems handle routine inquiries. This method not only improves efficiency but also fosters a culture of innovation.

Creating a Competitive Edge

One of the most compelling insights from Bressler's talk was the need for a forward-thinking approach to technology. He likened this to opting for a "spaceship" instead of a faster horse, suggesting that companies need to look beyond immediate improvements and prepare for future technological advancements. This mindset has enabled UWM to maintain its leadership position in the wholesale mortgage industry, continually evolving to meet new challenges and opportunities.

Adapting to Technological Change

Bressler also highlighted the cultural challenges that often accompany technological adoption. In an industry that can be resistant to change, it is crucial to implement new technologies in a way that aligns with the company's strategic goals. Ensuring that employees are on board and properly trained is essential for a smooth transition and effective use of new systems.

Conclusion: Strategic Planning in AI Adoption

As Bressler pointed out, AI has the potential to be as transformative to the mortgage industry as the internet once was. Companies that hesitate to adopt these technologies may find themselves left behind. The current phase presents a unique opportunity to reassess and retool systems and processes to ensure resilience and adaptability.

At Simplify The Machine, we are committed to helping businesses navigate this transformation. By focusing on the specific needs of your business, whether in borrower experience, sales, or operations, you can position yourself for long-term success. Let's build the future together, leveraging technology to simplify your journey.