A carefully measured relaxation of mortgage lending criteria could open the door for more first-time buyers without triggering a significant rise in loan defaults, a leading banking and finance body has suggested. UK Finance's analysis indicates that a modest increase in lending, facilitated by reduced stress rates, could enhance mortgage accessibility, particularly for those entering the property market for the first time, without substantially increasing arrears.
Our perspective is that the holders of risk are the beneficiaries of lower costs and reduced risk, but it takes the whole ecosystem to participate. One thing about the Fannie Mae survey is the shift in business priorities from cost cutting to streamlining. Cost cutting and streamlining are related, but cost cutting carries a negative connotation does it mean cutting service, quality or jobs? For years, there was resistance and even regulatory hesitation.
For decades, the mortgage industry has relied on automation to reduce errors, standardize workflows, and cut loan turn times. Now, AI is enhancing those systems with real-time data interpretation, predictive modeling, and intelligent decision support. For the first time, we're seeing AI extend far beyond basic productivity tools. Lenders are using it to improve lead scoring, accelerate underwriting, enhance fraud detection, and even support post-close analysis.
