Other industries have been employing AI for some time, now it is finally coming to home finance. We are now seeing the rise of AI in mortgage.
There is a sea change coming to the mortgage business. Interest rates have gone as low as they can go and can only rise from here. As they do, volumes will fall but the cost to close a loan may not. In fact, with the cost of expensive overhead spread across fewer loans, many lenders will see their costs increase. This must change.
Jim Rosen, our Vice President of Product Management, recently wrote about that in an article that appeared on the blog for Progress in Lending.
The majority of the lender’s costs are tied up in human resources. When these resources are used to stare at a monitor and compare documents to a checklist of required information, these costs come right out of margins. However, when additional resources and budget can be repurposed and applied to marketing, sales and customer service they actually create more profit for the company.
Lenders must process more loans with fewer people. Automation alone will not accomplish this. But AI-powered loan automation can.
Mortgage technologists are very proud of the high levels of automation we have achieved, and rightly so. But the work that remains is harder. As we move into the future, it won’t be about simple automation, but rather about integrating real-time data into our automated processes. This is the only way to take humans out of the process.
Jim did a great job of explaining why this is true and what the industry can do next to reduce costs before it’s too late. Read the full article here.