Written by Dawid Kotur, CEO of Curvestone
Nobody knows exactly how AI will reshape mortgage compliance, but here’s one compelling vision: Mortgage compliance teams are about to be transformed, not replaced.
Why AI-powered checking creates more demanding roles for compliance professionals
While headlines like to scream about AI replacing mortgage jobs, one possible future for compliance departments tells a more transformative story. Mortgage case assessment teams could soon shift from 10% spot checks to comprehensive AI-assisted reviews – and that means compliance professionals could see their roles fundamentally change rather than disappear.
When you can suddenly check 100% of cases instead of 10%, the entire compliance function transforms. Brokers will receive instant feedback on every case, raising industry standards across the board. Meanwhile, someone needs to handle the increased volume of exceptions, edge cases, and complex situations that surface. Mortgage case file checks that took 2-3 hours can now take only 12 minutes total – but while AI handles 4 minutes of automated review, the remaining 8 minutes of human oversight is more intensive than the original manual process.
This transition mirrors what’s already happened in law firms. When DORA regulation hit, firms like Stephenson Harwood and Walker Morris didn’t fire their compliance teams – they elevated them. These professionals now supervise AI systems, handle complex interpretations, and manage the exponentially larger volume of flagged issues.
Consumer Duty requirements make this evolution even more pronounced. AI can identify vulnerable customers at scale, but it can’t navigate the complexity of actually helping them. That requires experienced professionals who understand both the regulations and the human context.
As the FCA gains the ability to demand comprehensive checking, mortgage networks face a new challenge: managing the sheer volume of exceptions and edge cases that emerge when you examine every file. This isn’t work for junior staff or automation – it requires seasoned professionals who can:
- Make nuanced judgments on complex cases
- Handle sensitive vulnerable customer situations
- Provide instant feedback to brokers to elevate compliance standards
- Transform departmental workflows to handle 100% checking capabilities
- Manage relationships with tech providers and understand liability handoffs
- Train and oversee AI systems to ensure accuracy
Mortgage networks need to prepare for a fundamental transformation of their compliance teams, focusing on evolution rather than downsizing. They’re investing in training their teams to become “AI supervisors” who can leverage technology while maintaining the human judgment that regulations demand.
The opportunity is clear: mortgage compliance workers can become the essential human layer that makes AI-powered compliance actually work. In a world where every case gets checked, the professionals who can handle what AI flags become the architects of a new, more robust compliance framework.
