"Our survey results reinforce the growing consensus that home buyers are becoming increasingly tech-savvy and expect the mortgage process to mirror the seamless digital experiences they encounter in other parts of their lives," Cloudvirga CEO Maria Moskver said in a press release. 

She noted, however, diverging sentiment toward artificial intelligence. 

"Clearly, while AI is an increasingly major component of digital mortgage origination, it's still not a trusted system for many borrowers," she said. The survey questions looked at artificial intelligence deployment within the overall lending process and did not delineate usage for individual elements or tasks. 

Cloudvirga's findings come as regulators continue to scrutinize potential unintended consequences of using AI, regularly raising concerns about bias artificial intelligence-backed tools might bring if used in the loan approval or appraisal process. At the same time, fintechs themselves are trying to grapple with fair lending concerns, making efforts to determine the right balance to remove bias from their modeling without sacrificing accuracy.   

"Lenders need to be cautious with how they develop their digital, borrower-first experience, taking a measured approach that meets consumers where they are," Moskver said. 

Outside of artificial intelligence, though, respondents in Cloudvirga's research showed borrowers were far more content with technology's growing role in mortgage lending that gave them self-service options. In the survey of homeowners who either bought or refinanced properties in the past two years, 71% said they were very satisfied with lender-provided tools that helped them manage the application process. Over two-thirds also indicated high levels of satisfaction with lender's responsiveness when they needed online support. 

In past research, the length of the closing process frequently stuck out as a pain point for mortgage borrowers. In Cloudvirga's survey, participants pointed to more efficient transactions thanks to tools that gave them real-time loan-status updates, which a 69% share took advantage of. Over half, or 52%, said they also benefited from eSigning tools. 

Meanwhile, 72% indicated they used automated methods to submit documents in the application and underwriting process. A 92% share overall said they were at least somewhat satisfied with their document-submission process.

The survey of over 1,000 participants in Cloudvirga's research tended to skew younger, with approximately three-quarters both under the age of 40 and buying a home for the first time. In a sign of what the future could hold for lenders, over three-quarters, or 77%, said they expect their next mortgage loan transaction to be entirely digital. A majority of 63% wished their most recent transaction to have been even more of a digital experience.

Still, loan officers continue to play a much-needed role for borrowers, with 58% consulting them to handle the initial application process. Under half, or 46%, received direct communication from their LO when supporting documents or additional information were required. 

"The survey results highlight an important nuance in consumer expectations during the mortgage process. They want the ease and efficiency of automated platforms and a borrower-friendly user interface, but they are still relying on loan officer involvement," Moskver said.