TheMReport — News and strategies for the evolving mortgage marketplace.
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M R EP O RT | 19 COVER STORY derwriting time. For example, certain technology tools are leveraged to assist in analyzing bank statements, including tools that use AI. Still, the judgment of trained and experienced under- writers will always be necessary behind the scenes. Relying solely on automation can lead to risk models that are overly permis- sive or restrictive. In the future, advancements in AI and machine learning to offer an even better blend of self-service technology and a seamless experience will take the all-digital mortgage pro- cess to the next level. Rob Nunziata Co-Founder & CEO, ActiveComply AI and machine learning can help with compliance-related tasks, such as monitoring your company's social media or remote workers. Also new technologies are helping to make sure data on files is correct as it passes through different departments. The old adage of "stare and compare" is now being replaced by some AI technology that is way faster and more accurate than humans. Reicher: Machine learning is taking technologies like virtual agents and automation technol- ogy to the next level. Stepping beyond the natural language processing required of modern virtual agents, machine learning can leverage a customer's mort- gage information and activity to personalize the digital experience. Virtual agents can adapt based on recent activity, both mortgage and customer, to customize and max- imize interactions. Machine learn- ing allows automation technology like RPA to adapt and improve over time with less overhead, and fewer exceptions to be worked by human counterparts. With the advent of AI-based language models like ChatGPT, virtual agents will take on an even broader role in the mortgage process. Virtual agents leverag- ing these new models will have access to a massively expansive database, coupled with the ability to communicate this information in a human-friendly manner, which will transform customer service. Souren Sarkar CMB, President & Co-Founder, Nexval AI and machine learning algo- rithms are already being used in the mortgage industry to generate innovative solutions and value for both consumers and financial institutions. Even so, mortgage processes are complicated and may still require several manual inputs for the foreseeable future. However, two areas where AI and machine learning are helping to advance digital processes are improved application verification and better document validation. With applications, for example, AI-based mortgage IT companies may be able to use a lender's existing data for predictive model training, which makes it easier to estimate a borrower's income. This information could then be compared to the borrower's reported income to ensure it is accurate and reasonable. Machine learning models may be improved to verify the consistency, thor- oughness, accuracy, and validity of data in loan documents, since mortgage financing remains a document-intensive process that involves extensive paperwork to close a loan. Another future advantage of implementing AI is that loan modifications can also be done as needed. With advancements like these, it's not an exaggeration to say that AI will be the future of mortgage processes. Vinci: Advancements in AI and machine learning could potential- ly advance the all-digital mortgage process in a number of interesting ways. AI and machine learn- ing are already being applied to help automate the underwriting process by quickly and accurately assessing a borrower's creditwor- thiness. This is being extended to origination quality control processes, secondary market due diligence reviews, fraud detection, and servicing transfers. It can greatly impact the accuracy of document indexing, data ex- traction, facilitating doc-to-data reviews, and other quality control reviews. AI and predictive anal- ysis can also help forecast loan modification recidivism and force majeure event impact models. Natural language processing, in combination with AI, can be used to decrease customer contacts to deliver requested information, reducing the need for human intervention. Other interesting areas include the use of virtual or augmented reality for property inspections, and for potential buyer showings. What can the tech space do in terms of welcoming consumers to better embrace technology in the homebuying process? Joe Camerieri EVP, Sales & Strategy, Mortgage Cadence In terms of adopting technolo- gy, there is not a lot we have to Through lessons learned from past market booms, the industry navigated the sustained barrage of record volumes, in part via the adoption of new technological techniques.