The power of artificial intelligence is in the use case and the willingness of the lender to use it.
A common theme amongst all the conferences this year has been the AI tech demo. They always elicit a bunch of “oohs” and “ahs” from the audience. But that’s about it.
It starts with a well-dressed mortgage technology salesperson taking the stage and launching a presentation that shows a powerful new AI tool extracting data from some part of the mortgage loan origination process. First you see the data here, say on a document or a PDF delivered by a settlement services person, and then you see it on the screen.
Magical. But then what? Really. What happens to that data after the AI pulls it out of our process? What will the lender do with it?
These are the questions that still need to be answered. Once they are and we truly know how the information will be used, we’ll then be able to calculate the true benefit of AI in mortgage.
One of the lessons we learned early on in the mortgage technology business is that lenders will get no benefits from functionality they do not use. We can build all manners of bells and whistles into a platform, but without adoption, they will never generate a return on investment.
The same can be said of data. It doesn’t matter what an AI tool can do with data, if it is not turned into insight that the lender can use, if that data isn’t leveraged for some result, it’s just a parlor trick.
To some extent, this means that many of the AI tools we’ve been watching flood into our industry lately, and so many others, aren’t very useful at its current state. Not because they can’t manipulate data, but because the end user hasn’t decided what they want to do with it yet.
Some use cases are straightforward. That’s why we built AI tools into the MCP LOS specific to document management. We knew what data we were looking for and specifically what we were going to use it for and turned the AI loose to do it. It works great.
But lenders aren’t ready to take that data and use it for decisioning. That’s probably years away.
The power is in the use case and the willingness of the lender to use it.
Some lenders will wait a long time before they can take advantage of the new AI-powered tools because they are stuck using older origination technology that simply can’t deliver them.
This is why a partnership with your technology developer is so important. We can build amazing things, but we prefer to build things that our lender partners will use and benefit from. That means we must work together.
Our MCP platform is built on the latest open architecture, allowing us to use all the new tools and move data in and through our systems securely and efficiently. We are developing and launching AI tools within the system. But what do you want to do?
Lenders are not used to answering this question because in the past it has just led to very high costs; long, slow implementations; and, ultimately, disappointment. We can show you a better way.
If you show us your loan origination pain, we’ll show you a solution for it. And it won’t be some conference stage magic show, it will be real power that you can use today.
By Jim Rosen, EVP, Services at Mortgage Cadence
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