Mortgage leaders on embracing consolidation and AI innovation

Navigating change and technological transformation took center stage this week at the Mortgage Bankers Association‘s annual convention in Las Vegas, where industry leaders discussed consolidation, artificial intelligence and how to keep pace with shifts across the mortgage landscape.

Bill Emerson, president of Rocket Companies and moderator of the session, opened the discussion by noting that “change is in the air” across both the mortgage and real estate sectors.

Emerson was joined by Terry Schmidt, CEO of Guild Mortgage; John Hedlund, vice chairman at ICE Mortgage Technology; and Brian Woodring, chief information officer at Newrez.

Emerson acknowledged what he called the “elephant in the room” — industry consolidation — before turning the conversation over to Schmidt, who has been with Guild for 41 years and has overseen much of the company’s merger and acquisition (M&A) activity.

Speaking about Guild’s recent acquisition by a fund owned by Bayview Asset Management, Schmidt said, “We’ve been in the acquisition M&A space for a long time. It’s been a way for us to continue to grow in the retail channel, as well as organically. But this came up where, as stewards of our companies, we have to really think about what the world is going to look like in five to 10 years.”

She added that the new ownership provides “a lot more value and a lot more horsepower, (and) has a lot more capital to continue to grow and build the company.”

Woodring said that he views consolidation as “the natural evolution of the industry.” He emphasized that larger companies with greater capital can better deploy new technologies, thus improving scalability and efficiency for both lenders and borrowers.

Woodring also said that in an industry “resistant to scale,” artificial intelligence can help with consolidation and horsepower. “AI is 80% hype, 20% reality, but the promise is real,” he said.

“There’s an opportunity for automation, and thus to create that kind of virtuous cycle, [which is] better for the lender or servicer. It’s also better for the customer, better for the partner, because it makes a more streamlined experience,” Woodring added.

Hedlund said that it’s “critical” for the industry to get AI use correct, compliant and accurate.

“Implementing any technology is a difficult decision. It’s time-consuming, and you’re locked into it,” he said. “The best approach is to be thoughtful about its purpose.”

Hedlund urged mortgage leaders to focus on solving real business challenges with technology, rather than deploying AI simply for the sake of innovation. “What’s the ROI? Does it improve efficiency and enhance the human element?” he asked.

Looking to the future, each panelist predicted continued automation and regulatory change as borrowers adapt and develop expectations for high-tech transactions and interactions.

“Companies that embrace technological change will be more competitive,” Schmidt said. “The time is always now — you have to take advantage of opportunities as they exist and be prepared to navigate risks.”