The most tech-savvy generations are also the most tech-demanding, and many don’t think the tech is good enough yet
New stories about artificial intelligence (AI) entering the mortgage industry are becoming almost daily occurrences. While some might assume a borrower’s appetite for AI skews younger, one industry expert notes that younger generations have higher expectations for new tech.
Bruce Gehrke (pictured top), senior director of wealth and lending intelligence at JD Power, noted that tech-savvy younger generations make up a larger percentage of mortgage purchases.
“One of the things we did see, which sort of supports this idea in younger borrowers, is we're seeing kind of a widening of the differences between the groups,” Gehrke told Mortgage Professional America. “If we look at Gen X, Millennials and Boomers, they’re still about 35% to 40% of the purchasers out there, but 60% are coming from Gen Y and Gen Z. So, younger borrowers are taking up a bigger chunk of that pie.”
With more young borrowers, the increase in AI technology seems geared toward them. But Gehrke notes that those borrowers aren’t ready to go all-in on AI. They have high expectations, and if the tech doesn’t measure up, they’ll turn to face-to-face interactions instead.
“Younger borrowers are more technology-focused and digitally native,” he said. “I think their expectations tend to be higher, though, and we’re seeing an interesting crossover. We’re also seeing it in the wealth management data as well. Younger borrowers are reaching out for personal interaction more often than older borrowers.
“We have data that supports the fact that they’re viewing the experience and the capabilities, and what they’re seeing is not quite enough of what they’re looking for. So, they tend to reach out to fill the gaps in that experience.”
Face-to-face interactions not going away
Gehrke notes that these younger borrowers don’t just want a personal interaction to fill the gaps in technology. They’re willing to drive to brokerages and have that interaction in person.
“They would rather do this face-to-face than over the phone or through some other medium,” Gehrke said. “This is an advantage the local provider has to double down and understand. They need to be able to recognize when and where this is happening and how to deal with it.”
Companies continue to ramp up AI products to try to close that gap. United Wholesale Mortgage (UWM) announced a series of AI-backed tools, including an AI loan officer assistant. Rocket announced a new AI-powered website back in January.
Jason Bressler of UWM pushed the boundaries of what’s possible in mortgage tech with “Mia,” an AI assistant that streamlines client follow-up and enhances broker productivity.https://t.co/gnubCAGlmK
— Mortgage Professional America Magazine (@MPAMagazineUS) May 16, 2025
When the AI technology meets the needs of younger buyers, Gehrke believes they’ll be happy to use it.
“If this experience gets to the point where it’s more and more efficient due to AI, they’re going to go that way,” he said. “So, they’re basically saying at this point, it’s not quite there yet, so where they’re not ready to do that, they’re going back to that personal interaction.”
Like that ‘Blockbuster’ moment
AI technology is currently in the news as Congress attempts to pass President Trump’s government funding agreement. Currently in the House version of the bill is an agreement that would stop states from regulating AI for 10 years.
Gehrke notes that one of the most fascinating things about new artificial intelligence technology is that it is advancing so quickly that it makes things currently believed impossible a reality. He cautions those in the mortgage industry who believe that some things aren’t possible to be aware of rapidly changing conditions.
For example, could he imagine a future without local real estate agents? He says it’s unlikely, but technology might have other ideas.
“I think you have to be concerned if people stopped using local real estate agents,” Gehrke said. “It’s hard for me to envision how that happens, but you never say never, especially with technology and some of the things going on. If that stops happening, it’s a whole different game for lenders.”
If that happened, Gehrke compares it to the former movie rental chain Blockbuster Video, and how its inability to keep up with new technology eventually became its downfall.
Everybody relying on that ecosystem for their leads and for their interactions and engagements,” he said. “That’s like a Blockbuster moment. That’s not something you plan for, but don’t pretend that it can’t happen. I think a lot of people believe wholeheartedly that it could never happen.
“And like I said, I think it’s very unlikely. But AI is one of those things that can get to places where we just can’t envision yet. It’s a fascinating time in the industry because we may be seeing some structural changes that we have not seen in a long time.”
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