55% of U.S. mortgage borrowers now say they would prefer to work with a human to secure a mortgage, up nine percentage points from last year. At the same time, three out of four borrowers expect AI to be part of the process. Those two facts do not contradict each other. They define the only positioning that works.
Cotality’s 2026 Consumer Housing Sentiment Survey found that borrowers are simultaneously more aware of AI in mortgages and less trusting of it. 75% of buyers assume AI is already embedded in the housing ecosystem. But when asked whether they would rather have a person or an algorithm handle their mortgage, the majority now picks the person, and that number grew this year, not shrank.
The survey also found that 66% of U.S. buyers would rely on humans over AI for legal assistance related to their mortgage (up from 54% last year), and 45% would pay an additional fee to have a human verify AI-generated decisions about their loan. Borrowers are not rejecting AI. They are rejecting unverified AI.
Why Trust Is Declining While Usage Is Growing
This is not a contradiction. Borrowers have had a year of using AI tools (rate estimators, pre-qualification bots, chatbots on lender sites) and the experience has been mixed. The tools are fast but impersonal. They produce answers but not confidence. When borrowers hit a question they genuinely care about (“Can I actually afford this?” or “Is this the right time to buy?”), they want to talk to someone who knows their situation.
The experience gap works in your favor if you are a loan officer who combines AI efficiency with personal judgment. The borrower who gets an instant pre-qual from a chatbot and then talks to a human who explains what the number means, what it does not mean, and what they would do in the borrower’s position, that borrower closes. The one who only gets the chatbot often drops off.
What This Means for Loan Officers Using AI
The mortgage industry has spent two years telling loan officers that AI will replace them. The borrower data says the opposite: AI that operates without human oversight makes borrowers less comfortable, not more. The winning model is AI that handles the repetitive work (data collection, document processing, credit monitoring, automated follow-up) while the loan officer handles the conversations that require judgment, empathy, and local knowledge.
This is not a philosophical position. It is a competitive advantage. If your competitors are leaning into fully automated experiences and borrowers are increasingly saying they want a human in the loop, the loan officer who shows up personally while using AI behind the scenes captures the gap.
The CRM Is Where the Hybrid Model Lives
A CRM that uses AI to monitor your database, trigger alerts when a client’s credit profile changes, automate follow-up sequences, and surface the right contacts at the right time frees you to do the work borrowers actually want from you: answering their questions, explaining their options, and guiding them through a process that still feels overwhelming even with all the technology in the world.
BNTouch’s approach is built on this model. The AI assistant handles database monitoring, automated communications, and workflow automation. The loan officer handles the relationship. Borrowers get the speed of AI and the trust of a human, which is exactly the combination the data says they are looking for.
Frequently Asked Questions
Do borrowers trust AI for mortgage decisions?
Trust is mixed and declining. According to Cotality’s 2026 survey, 55% of U.S. borrowers prefer working with a human for their mortgage (up 9 points year over year), and less than half consider AI reliable for fair lending decisions. However, 75% of borrowers expect AI to be part of the process, indicating they want AI efficiency combined with human oversight.
Should loan officers use AI if borrowers don’t trust it?
Yes, but behind the scenes. Borrowers benefit from AI that speeds up processing, monitors credit, and automates follow-up. Their resistance is to AI making unsupervised decisions about their loan. The winning model uses AI for operational efficiency while the loan officer stays visible as the trusted advisor.
What percentage of borrowers would pay extra for human verification of AI decisions?
45% of respondents in Cotality’s 2026 survey said they would pay an additional fee to have a human verify AI-generated housing decisions. This signals strong demand for human-in-the-loop mortgage services.
Is AI replacing loan officers?
The data does not support that narrative. Borrower preference for human interaction is increasing, not decreasing. AI is automating back-office tasks (document processing, credit monitoring, follow-up scheduling) but the advisory relationship remains human. Loan officers who combine AI tools with personal service are outperforming both fully automated lenders and those using no technology.
Borrowers want AI speed and human trust. BNTouch gives you both. Automate the back office, stay present for the conversations that close deals. See how the hybrid model works.
