How do tools like AI and machine learning assist in the progression of technology in the mortgage industry?
There is a misconception in our industry about the nature of Artificial Intelligence, and its role in the mortgage technology that drives our mortgage origination process. I think this comes from the science fiction we grew up with.
Don’t get me wrong. AI is real and it’s contributing to some of the leading industry software applications right now. But not in the way someone in Hollywood might think.
Scan through the offerings of any of the video streaming services and you’ll find many stories of AI gone bad, becoming smarter or otherwise better than humans and turning against us. When it comes to the entertainment world, all AI looks like the Terminator.
To mortgage technologists, it looks quite different.
We see many stories about vendors in our industry adding AI to their software and then promising immediate process improvements and efficiency. Typically, that’s not how it works.
AI as it pertains to mortgage technology is not some sentient computer being that does our work for us. But it can make decisions based on the inputs it is given. When it watches humans do their work, it begins to learn and can make similar decisions on its own in the future.
For instance, the AI we’ve built into our platform has been analyzing thousands and thousands of paystubs so it can (1) recognize the document for what it is, (2) find the data in the document that we need to process the loan, and (3) send that data into the LOS.
We track the AI’s training progress by measuring how often it does this job accurately. It’s never 100% of the time. There are always exceptions that humans must process. We’re not training the AI to be smarter than us; we’re teaching it to be a good component of a better overall loan origination system.
As mortgage industry technology continues to mature and evolve, tools like AI and machine learning will make the loan manufacturing process more efficient and reduce both the time it takes to close a loan and the cost to the lender to originate.
Ultimately, we expect AI to touch every part of our process and take much of the friction out of the work we do. But we don’t ever expect to install robots in bank branches and expect them to originate mortgage loans. These technologies will help mortgage lenders, not replace them.
By Joe Camerieri, EVP, Sales & Strategy at Mortgage Cadence
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