Artificial intelligence is being introduced into the mortgage industry to help Hispanic and limited-English homebuyers navigate the complex process of securing a home loan. New AI-powered platforms are designed to bridge language gaps and address challenges related to non-traditional income and credit histories, aiming to increase homeownership rates in underserved communities.
A nonprofit organization has launched a tool that allows loan officers to instantly search the requirements of over 150 lenders, streamlining a process that previously required extensive manual research. This technology is emerging as a critical resource, particularly as some federal housing services have shifted toward English-only communication.
Key Takeaways
- New AI platforms are helping mortgage professionals find lenders for Hispanic homebuyers with unique financial situations.
- The technology simplifies applications for buyers who may lack a Social Security number, have a limited credit history, or are on a visa.
- A nonprofit, HOME, developed an AI search tool that compares requirements from more than 150 lenders at once.
- Another company, Better Home & Finance, is using AI to assist with non-traditional income verification and borrower communication.
- These tools aim to improve financial literacy and confidence among buyers who face language and cultural barriers in the housing market.
Addressing a Major Hurdle in Homeownership
For many Hispanic families, the path to owning a home is often complicated by significant obstacles. These can include language barriers with loan officers and difficulty finding lenders who understand applicants with non-traditional financial profiles.
Homeownership is a primary driver of generational wealth, but accessing it can be difficult for those who do not fit standard lending criteria. This challenge has prompted some in the mortgage industry to look for technological solutions.
A Growing Need for Language Access
According to the Urban Institute, a Washington, D.C.-based research organization, the number of households with limited English proficiency tripled over the last four decades. The institute notes that these households often face significant difficulties navigating the mortgage application process, which can prevent them from achieving homeownership.
In response, mortgage experts are now using artificial intelligence to make the process more accessible. The goal is to equip loan officers with tools that can quickly identify the best lenders for a buyer's specific needs while clearly explaining complex requirements related to residency, income, and credit.
A New Platform for a Complex Market
The Hispanic Organization of Mortgage Experts (HOME), a nonprofit group, recently launched an AI platform built using ChatGPT technology. This system, known as Wholesale Search, gives mortgage professionals access to an internal database of lender requirements, eliminating the need to contact each one individually.
The platform is specifically designed to handle complex borrower situations. These include applicants without a Social Security number, those with minimal or no credit history, or individuals residing in the U.S. on a visa.
“Education is the gateway to opportunity,” said Cubie Hernandez, the chief technology and learning officer for HOME. He explained that the organization’s objective is to empower families with confidence during the mortgage process while encouraging the industry to adopt modern practices.
In addition to the technology, HOME provides a training program for loan officers called Home Certified. The program offers self-paced courses on subjects like income analysis, compliance regulations, and effective intercultural communication.
Streamlining the Application Process
Loan officers who have adopted the technology report a significant improvement in their workflow. Danny Velazquez, a loan officer with GFL Capital, said the platform has fundamentally changed how he works.
Previously, Velazquez had to contact approximately 70 different lenders one by one to see if they would work with a particular buyer. This process involved long waits for responses and sometimes ended with the discovery that a lender’s guidelines were not a match.
From Weeks to Minutes
Before using AI, a loan officer might spend days or weeks contacting dozens of lenders. With the new platform, they can filter and compare the requirements of over 150 lenders in a single search, dramatically reducing application processing times.
The AI tool consolidates all the necessary information in one place, allowing him to quickly narrow down the list of potential lenders and streamline the application. “I am just able to make the process faster and get them the house,” Velazquez stated.
The Homebuyer Experience
The impact of this technology is evident in the experiences of recent homebuyers. Heriberto Blanco-Joya, 38, recently purchased his first home in Las Vegas with assistance from Velazquez.
As a native Spanish speaker, Blanco-Joya and his wife anticipated a confusing and difficult process. Instead, they found the experience to be straightforward. Velazquez provided a clear list of required documents, explained how his credit score would affect his eligibility, and was able to answer questions promptly.
“He provided me all the information I needed to buy,” Blanco-Joya said. “The process was pleasant and simple.”
The entire journey, from their initial meeting with Velazquez to the day they closed on their home, took approximately six weeks. This timeline highlights the efficiency gained through the new system.
Ensuring Accuracy and Trust
While AI offers powerful benefits, its creators and users acknowledge the potential risks. Families depend on receiving accurate information about complex topics like loan terms, immigration status, and credit requirements. An error from an AI system could have serious financial consequences.
Rogelio Goertzen, the founder of HOME, explained that his organization has implemented safeguards to minimize errors. The AI platform pulls its information directly from lenders and verified loan officers. The database is also continuously updated as new loan products become available.
Furthermore, users of the platform can flag any inaccuracies they find, which are then addressed by developers. “When there are things that are incorrect, we are constantly correcting it,” Goertzen said. “AI is a great tool, but it doesn’t replace that human element of professionalism, and that is why we are constantly tweaking and making sure it is correct.”
Wider Industry Adoption of AI
HOME is not the only organization exploring AI to better serve homebuyers. Better Home & Finance Holding Co., a mortgage lender that uses AI, has developed its own platform called Tinman. This system helps loan officers find suitable lenders for borrowers with non-traditional income sources, such as small-business owners.
The company has also created a voice-based AI assistant named Betsy, which handles more than 127,000 borrower interactions every month. A Spanish-language version of Betsy is currently in development to further expand its reach.
Leah Price, vice president of the Tinman platform, highlighted the importance of such tools. “Financial literacy can be challenging for Hispanic borrowers or borrowers in other underserved populations,” she said. “Tools like Betsy can interact and engage with customers in a way that feels supportive and not judgmental.”
For mortgage brokers like Jay Rodriguez of Arbor Financial Group, these AI platforms are valuable for training new loan officers and helping teams understand how to better serve their local communities. He noted that understanding the specific requirements of different lenders can be the difference between approving a family for a home or turning them away.
