HousingWire: AI-driven mortgage lending: A conversation with tidalwave’s leaders

The mortgage industry stands at a crossroads — while nearly every other sector has embraced digital transformation, mortgage lending remains burdened by manual processes, outdated workflows, and costly inefficiencies. Generative AI has the potential to finally bridge the gap, automating complex tasks, reducing friction for borrowers, and helping lenders regain profitability. 

In this conversation, industry leaders Chris McLendon and Chris Olsen explore how AI can be the catalyst for real change. From streamlining underwriting to expanding accessibility with multilingual support, they discuss how the industry can harness AI responsibly, strategically, and effectively. As housing finance continues to evolve, the question isn’t if AI will play a role — but how and who’s utilizing it.

AI-first vs. AI-integrated: What sets tidalwave apart

McClendon, who recently joined Tidalwave as CRO after a decade at ICE, explained what drew him to 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.

“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 makes a significant difference in security, traceability, and borrower interaction. “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,” McClendon explained.

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 explained. “What used to take two to three days now takes two to three minutes.”

“Instead of static applications going back and forth between borrowers and processors, the AI detects necessary documents upfront, eliminating delays,” McClendon said.

By reducing underwriting touches, Tidalwave aims to double or even triple underwriters’ capacity. “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,” McClendon said.

Cost savings without sacrificing quality

With mortgage lenders laser-focused on cost reduction, Tidalwave offers a way to cut expenses while maintaining high-quality loan origination.

“The key is reducing inefficiencies,” McClendon said. “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, beginning 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.”

McClendon shared how this technology personally impacted a former colleague. “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.”

With Hispanic homebuyers being a fast-growing segment, Tidalwave’s multilingual AI ensures borrowers can participate without language barriers.

The future of AI in mortgage origination

Both McClendon and Olsen see 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,” McClendon 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.”

See the interview in HousingWire here