Despite substantial investment in artificial intelligence, mortgage origination remains expensive and labor-intensive. In the first quarter of 2026, the average cost to originate a loan rose to $11,898, while lenders earned just $727, or 16 basis points, in pre-tax production profit.  Why has that investment not produced a visible reduction in the cost to originate? […]

Start with a number that still bothers me: It costs the industry $11,898 to produce one mortgage. The average since 2008 is $7,903. So through the whole “digital mortgage” era, all those billions in software, the cost of making a loan went up 50%. We digitized the fax machine and sent borrowers the bill. If

Here is a common situation. On a Thursday afternoon, a closing coordinator at a title company gets an email from a supposed seller. He says he’s traveling and needs his wire instructions updated before Friday’s closing. Nothing looks off. The coordinator updates the file. When the file disburses the next day, $100,000 in seller proceeds