In a panel discussion at the 2025 Expo held by the Canadian Association of Alternative Mortgage Lenders (CAMLA), industry experts agreed that brokers specializing in alternative and private lending have advantages as automation reshapes the wider financial sector.
They highlight the nuanced, relationship-oriented nature of alternative loans, as technology cannot be completely replaced.
Why alternative brokers get better protection from automation
Ron Butler of Butler Mortgage told listeners that brokers of private and alternative loans have built-in protections for the upcoming wave of automation that have impacted traditional mortgages.
“You are lucky whether you know it or not. For at least the next 10 years, you’re in an effective business and can’t be replaced by AI,” Butler said.
He compared it with the major lending markets where major banks are actively automating document verification and underwriting roles.
“Thousands of people [in the prime lending space] He added that he would lose his job in the next 10 years. Banks want to find ways to eliminate people. ”
“AI can handle everything [of the verification of the documents]This makes many current positions obsolete, he predicts: “There will be no document administrator within three years. ”
Butler explained that the core of alternative loans, personal judgment, subtle risk assessment and relationship building are what makes it difficult to automate.
“But, fortunately, this private lending world is enough for the people here, and what’s unique about it is not urgently introducing advanced automation,” he said. “If we drastically reduce fraudulent and immoral practices, this part of the future is a bright future.”
Implaced human elements
Mike Forshee, president and managing director of Glasslake funding, agreed with Butler, noting that automation simply doesn’t fit in the way alternative loans really work.
“Automation (I think it’s very far away on this side of the industry. Just on scale, you can’t do it, economics doesn’t make sense,” Forshee said. “The key human element that technology can’t replicate.”[onthissideoftheindustryIt’ssodeepthatyoucan’tmakeit”Justthroughthescaleyoucan’tmakesense”Forsheesaid“There’saccriticalhumanelementthattechnologycan’treplicate”[onthissideoftheindustryIthinkissofarawayJustthroughthescaleyoucan’ttheeconomicsjustdon’tmakesense”Forsheesaid“There’sacriticalhumanelementthattechnologycan’treplicate”
Riverrock Mic’s president and CEO Nick Kyprianou shared similar ideas, highlighting another type of loan thrives in understanding the unique stories of clients.
“It takes some care to really understand the story about why the client is in this situation, and then figure out the plan and look forward to the client, two years, three years, five years, two years.”
“At the end of the day, it’s an integral part of automation, such as OCR technology and certain AI capabilities, that can help us become more efficient on the side, but not completely over-integrated.”
A promising human-driven future
The panelists carefully illuminated the ongoing economic and industry challenges, but affirmed the strong potential of alternative loan growth.
“In this area, there are only more opportunities,” Butler said. “Be happy in your work, but enforce the rules correctly.
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Last modified: May 15, 2025
