AI-Driven Mortgage Lending: A Conversation with Tidalwave’s Leaders
The mortgage industry is at a critical juncture. While nearly every other sector has embraced digital transformation, mortgage lending continues to be bogged down by manual processes, outdated workflows and costly inefficiencies. Generative AI offers a promising solution, with the potential to automate complex tasks, reduce borrower friction and help lenders regain profitability. In a recent discussion, industry leaders Chris McLendon and Chris Olsen explored how AI can be the catalyst for real change.
From streamlining underwriting to expanding accessibility with multilingual support, they discussed the strategic and effective applications of AI in the mortgage sector. As the housing finance landscape continues to evolve, the question isn’t if AI will play a role, but how and who will be utilizing it.
AI-First vs. AI-Integrated: What Sets Tidalwave Apart
Chris McLendon, who joined Tidalwave as CRO after a decade at ICE, explained his reasons for joining the company. “To see what [Founder] Diane was building and the success she’s had with Tidalwave, it just seemed like a really good opportunity,” he said. Olsen pointed out the AI-first approach as a key differentiator. “When you look at the market, everybody was addressing point-of-sale through just a form application,” Olsen said. “Tidalwave is AI-first — while others are just wrapping AI around existing tech, we are built on AI from the ground up.”
This AI-first approach has significant implications for security, traceability, and borrower interactions. “With our contextualizer, we’ve eliminated hallucinations, ensured PII security, and guaranteed that all customer data remains theirs — it doesn’t disappear into our LLM,” McLendon elaborated.
Reducing Loan Processing Time with AI Agents
Unlike traditional point-of-sale platforms that collect borrower data and pass it along, Tidalwave’s AI actively interacts with borrowers. “If a letter of explanation is needed, the AI doesn’t send it to the processor to fill out — it directly interviews the borrower, completes the letter, has them sign it in real time, and files it back into the system,” Olsen described. “What used to take two to three days now takes two to three minutes.”
McLendon added, “Instead of static applications going back and forth between borrowers and processors, the AI detects necessary documents upfront, eliminating delays.” By reducing underwriting touches, Tidalwave aims to double or even triple underwriters’ capacity. McLendon explained that “Right now, the industry standard is two to two and a half underwrites per day. But if we improve file quality at intake, we can increase that significantly.”
Cost Savings Without Sacrificing Quality
With mortgage lenders focused on cost reduction, Tidalwave offers a way to cut expenses while maintaining high-quality loan origination. “The key is reducing inefficiencies,” McLendon stated. “Lenders today hire and fire in cycles based on market demand. If we can help underwriters handle more files efficiently, lenders won’t have to over-hire in booms or lay off in downturns.”
Expanding Homeownership Access with Multilingual Capabilities
One of Tidalwave’s biggest innovations is its multilingual AI, starting with Spanish-language functionality. “If a borrower applies in Spanish, everything from emails to push notifications to loan status updates stays in Spanish,” Olsen said. “They can even ask questions in Spanish, and our AI assistant, Solo, will respond in real-time.”
McLendon shared a personal story that highlighted the impact of this technology: “She told me, ‘My mom only speaks Spanish. There’s nothing in the market for her.’ She was so moved by what we’re doing,” he said. “This isn’t just about efficiency — it’s about inclusion.” Tidalwave’s multilingual AI aims to ensure that Hispanic homebuyers, a rapidly growing segment, can participate without language barriers.
The Future of AI in Mortgage Origination
Both McLendon and Olsen foresee AI transforming the mortgage process well beyond point-of-sale. “We’re expanding AI agents to credit, income, and asset verification — helping with manual tasks so loan officers can focus on sales,” McLendon said. Olsen highlighted AI’s role in post-closing. “AI will review documents, extract data, and automatically clear conditions,” he said. “Instead of point solutions that only handle one step, we’ll own the borrower experience end-to-end.”
Tidalwave’s Vision in 2025
As the market stabilizes, Tidalwave continues to push for more innovation. “In 2025, we’re focusing on expanding AI-driven automation,” Olsen said. “We’re not just another POS provider — we’re redefining how mortgages are originated.”
