“Draw upon vendors, because there’s a lot of really cool and evolved tools out there,” Waldron said. “And the truth is, even with the best of them, it’s still difficult to combat. And trust your gut. It’s the old smell test. Let’s not let innovation take away common sense.”
With new technologies, brokers and lenders can now go through their entire pipeline to ensure compliance is met and fraud is detected. However, Waldron reminds brokers and lenders that now that you have that data, you will be expected to act on what you find.
“One of them is taking your quality process and building it in so that you’re not simply doing a 10% sampling anymore, or a couple percent sampling on, for example, call monitoring,” he said. “You now are empowered to do 100% of your pipeline or your portfolio, and that’s incredibly powerful.
“But my point is, be careful what you ask for, because if you are empowered with the results, you are obligated to do something with them. It is shining light into new areas of opportunity, and those areas are going to have to be staffed.”
With CFPB downsizing, states are ramping up oversight. Daniella Casseres of Mitchell Sandler told brokers at NAMMBA Connect to prepare for more investigations and stricter compliance rules.
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— Mortgage Professional America Magazine (@MPAMagazineUS) August 25, 2025
This is one area where Waldron believes AI and technology could actually increase jobs instead of taking them away. While AI might speed up the process of checking for fraud, it will also produce considerably more data that people will need to review and process manually.