Consumer Confidence in AI Is Falling. Why that Matters to Mortgage Brokers

Why It Matters

The decline in AI trust threatens adoption of efficiency‑driving tools and could slow digital transformation in mortgage services. Brokers that fail to provide transparency risk losing business to competitors who prioritize human‑centered AI.

Key Takeaways

• AI trust for home search dropped from 30% to 16%.
• Mortgage buyers demand transparent AI outcomes and human oversight.
• Brokers must tier AI risk and ensure compliance for decisions.
• Higher AI expectations increase scrutiny of rate and payment calculations.
• Clear communication of AI benefits is essential for customer confidence.

Pulse Analysis

Artificial intelligence has become a backbone of modern mortgage operations, from automating document verification to personalizing loan recommendations. While the technology promises faster turn‑times and lower costs, the Cotality AI in Housing 2026 report reveals a sharp erosion of consumer confidence, with only 16% of prospective homebuyers trusting AI to guide their search. This shift reflects a broader market fatigue as AI moves from a novel feature to an expected service, prompting buyers to scrutinize every algorithmic output for bias and accuracy.

For mortgage brokers, the stakes are higher than ever. The report highlights a tiered risk framework: low‑impact tasks like scheduling can be safely automated, but high‑impact decisions—such as rate setting or eligibility determinations—require rigorous oversight, compliance checks, and clear disclosure. Regulators are also tightening guidance around algorithmic transparency, meaning brokers must document model logic and provide consumers with understandable explanations. Failure to do so not only jeopardizes trust but could expose firms to legal and reputational fallout.

Strategically, brokers should blend AI efficiency with a human‑first narrative. Proactive communication that explains how AI enhances, rather than replaces, personal service can rebuild confidence. Offering opt‑in choices, real‑time audit trails, and easy access to a human advisor when AI‑driven recommendations are presented will differentiate forward‑looking firms. As the industry balances automation with accountability, those that master transparent AI integration will capture the next wave of digital‑savvy homebuyers.