HousingWire Daily Snapdocs CEO Michael Sachdev on bringing down the cost to originate
May 21, 2025
Michael Sachdev, CEO of Snapdocs, shares insights from his journey in the mortgage industry. He discusses how AI and automation are redefining loan origination, aiming to reduce costs despite rising tech expenses. Sachdev highlights the challenges of technology adoption in lending, emphasizing the need for alignment with operations. He also explores the evolving roles of AI in consumer decisions and the vital balance between automation and human judgment in complex scenarios.
AI Snips
Chapters
Transcript
Episode notes
Lenders' Market Challenges
- Lenders face challenges from high rates, low housing stock, and low market volumes.
- Profitability is recent; reducing costs and streamlining are key for survival in a small pie market.
Tech Cost Growing but Reducing Total Cost
- Tech cost for mortgage is about 10% of the total $12,000 loan origination cost but growing.
- Long-term, tech share may increase greatly while reducing overall costs significantly.
Implement Tech Thoughtfully
- Deploy technology carefully with attention to user adoption and operational changes.
- Proper implementation and process refactoring are essential for automation to reduce costs effectively.