MReport September 2019

TheMReport — News and strategies for the evolving mortgage marketplace.

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4 | TH E M R EP O RT MTECH The Road to Better ROI EXPERTS AT MREPORT'S LATEST WEBINAR COMPARED THE GROUND REALITY WITH FUTURISTIC ASSOCIATIONS RELATED TO AI. "A rtificial intelligence" (AI) is a popular buzzword within the industry today, conjuring images of smarter processes, expanded automation, and an overall smoother path ahead. However, what is the actual state of the industry when it comes to AI? Does the ground- level reality live up to the futur- istic associations the name con- jures? These were just some of the questions explored during a recent MReport webinar entitled "Intelligent Lending: Roadmap to ROI Using AI Technology," presented by AI Foundry. The webinar presented a roundtable-style discussion that enlisted the talents and insights of four subject-matter experts: • Stephen Butler, Founder and President, AI Foundry • James Deitch, Co-Founder & CEO, Teraverde Management Advisors; Author, "Digitally Transforming the Mortgage Banking Industry" • Manish Garg, VP, Product Management, Ellie Mae • Nate Spiegel, VP, Process Improvement & Change Execution, Citizens Bank The webinar began with a look at some of the ways that AI can help tackle challenges such as declining profit margins and at- tempts to streamline and improve the customer process. The panel discussed how robotic agents can replace laborious, manual processes involving calculating, indexing, and filing. Butler observed that, while robotic process automation has not consistently decreased costs, the combination of AI and intelligent processing automation could help solve for that. The group also dis- cussed how AI could help connect customers with the back office and provide immediate updates as to the status of their documents or applications. Deitch also noted that AI can perform income analysis for most borrowers, including the self- employed. Factoring in other ways that AI could help speed things up, Ellie Mae's Garg estimated that AI could help shave 5-10 days off the timeline on a loan application. The discussion then turned to questions of just how far along the industry really is when it comes to adoption of AI. The consensus was that, although AI holds enormous potential, it's still very early days as far as imple- mentation within the mortgage and servicing industries. Spiegel noted that most regional banks are still in the beginning stages of building data science and engi- neering teams internally, as well as engaging with external vendors and technology providers on proof-of-concept initiatives. For the most part, Deitch said, efforts at the moment are focused on the "low-hanging fruit"—areas where AI can more easily be tested or incorporated into exist- ing processes. The group agreed that AI is a topic that tends to be surrounded by a number of misconceptions, such as the belief that AI will inherently cause bias in decision- making or make most jobs re- dundant. While AI can automate many key processes, Garg sug- gested that AI can ideally be used to augment existing processes and technologies, allowing them to make better decisions and react according to strong, data-driven strategies. Citizens Bank's Spiegel also dismissed concerns that AI poses insurmountable challenges from a regulatory risk perspective. Bidding on New Technology A MOBILE APP AIMS TO ENGAGE AND INTERACT WITH ITS CLIENTS DURING THE ONLINE AUCTION PHASE. H ubzu, an online real es- tate marketing platform, announced the launch of new mobile technology features Automation Advancement New apps and product launches were just some of the initiatives that revolved around the growing interest in artificial intelligence in a mortgage industry that's embracing the benefits of technology.

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