Question for Self-Gen MLOs
I’ve been in the mortgage world for about 25 years now. I’ve built platforms for banks and credit unions, owned mortgage companies, and seen just about every cycle and workflow you can imagine. But the pace of AI adoption lately has me rethinking a lot of what used to be “the way things are done.”
Anyone in this business knows the biggest cost in manufacturing a mortgage is MLO comp. That cost gets baked into the rate, which affects how competitive you can be. Then you’ve got the traditional workflow — an MLO spends hours (sometimes days) putting a file together, coordinating with processors, underwriters, closers, and a whole cast of third‑party folks. It’s no wonder the industry average is still 30–45 days to close.
I’m exploring a partnership with a bank to build a nationwide retail platform, and I’m trying to rethink the whole thing from the ground up. The idea is to free MLOs from the grind so they can actually spend their time originating instead of babysitting files.
I’ve been testing a digital workflow that uses a conversational AI agent to handle a huge chunk of the front‑end work — taking the app, validating income/assets, running AUS, clearing stips, even drafting LOEs for digital signature. For a straightforward salaried borrower, it takes about 45 minutes. For complex income, under two hours. The MLO’s job becomes reviewing, submitting, and focusing on relationships instead of drowning in paperwork.
The same agent can support the downstream stages too, shaving days off the process. Lower manufacturing cost + faster delivery to MBS = more competitive rate sheets. And to be clear, this isn’t sci‑fi. I’ve been hands‑on with the tech for months.
So here’s what I’m trying to get a feel for:
If traditional comp is around 150 bps, what do you think is a fair comp structure when an MLO can realistically double or triple their production because the platform handles most of the busywork? The bank charter removes the state‑licensing hurdle, so that’s another factor.
I’m asking because I’m putting together a presentation for the bank’s board, and I want to sanity‑check my assumptions with people who actually live in this world.
Not recruiting, not selling anything — this is still early‑stage thinking. Just looking for honest, constructive input.
Appreciate anyone who takes the time to weigh in.