In a previous blog post, we explored the concepts of artificial intelligence (AI) and machine learning, and how they can be incorporated into the industry’s use. Today, we’ll look at some of the ways in which these processes are already being implemented into the mortgage lending and servicing space, and the impacts it will have.
Applying AI and Machine Learning to Reduce Costs and Turn Times
AI and machine learning can already make a difference in two of the biggest challenges faced today by mortgage originators: costs and cycle times. With the ability to read, comprehend, and draw conclusions based on context, AI and machine learning can perform operational functions more efficiently and at scale.
In fact, machine learning can work on many of the labor-intensive, “stare and compare” tasks performed by humans – such as verifying income, assets and insurance coverage. Machine learning is used to perform these manual activities that takes employees hours to complete in mere seconds.
AI-powered systems enable processors and underwriters to dedicate more time to addressing exceptions and solving problems, which will improve transaction turn times. Also, AI can help avoid last-minute delays by prompting a lender’s staff to take early action when there is an issue, keeping the origination process moving forward. By delegating work to AI-powered technology, a lender’s staff can focus on delivering a more positive and personalized consumer experience.
As AI and machine learning are used to perform manual, repetitive tasks, lenders can increase their focus on their company’s growth strategies. As they scale and reduce the cost per loan, lenders can invest more in product development, marketing, infrastructure and other growth-oriented initiatives.
Additional Applications of AI
AI can also leverage visual recognition to image and index a wide variety of documents that are typically reviewed by processors and underwriters, such as tax returns, W-2s, property titles and appraisals. A lender could even use AI and machine learning to better manage vendors. Based on past performance and cost, AI could provide recommendations on which vendors would be optimal for each loan going through the origination process.
Voice-integrated AI brings further opportunities to create efficiencies. This technology could look at information under review, evaluate results and automatically employ interactive communication bots to advise employees of any issue that may need attention. Additionally, via a conversational interface, processors and underwriters could ask for information they need – just as we use virtual assistants like Apple Siri, Amazon Alexa or Microsoft Cortana to get answers. These capabilities certainly could help move a loan through the origination process faster.
Leveraging AI to Enhance Customer Service
Many of us have experienced first-hand how AI is applied in retail to deliver a more personalized consumer experience. For example — when we shop online — we receive targeted product recommendations the next time we visit that site, or receive faster service though chat bots.
To help personalize and enhance the borrower’s experience, lenders can leverage voice capabilities. A mortgage virtual assistant that engages customers by answering questions, walking them through the application process and even offering advice could be employed using voice-integrated AI.
Impact on Jobs
When the subject of AI in the workplace is discussed, it inevitably raises questions about its impact on jobs. Will jobs be lost as a result of these technological advancements?
There is no perfect answer to this question since the utilization of AI is different from company to company. But, it seems certain that future skill sets will be required to support this shifting technological paradigm. As it applies to the mortgage industry today, however, AI can enable professionals to spend less time on remedial work, becoming knowledge workers instead of task executors, and provide additional value to a company.
The Future of AI and Machine Learning in Mortgage Lending and Servicing
Although AI and machine learning have already begun impacting the industry, their endless opportunities have yet to be fully capitalized on. Each day, Black Knight and its customers are exploring and implementing innovative uses for these processes, helping to forge new paths for lenders and servicers to reduce costs, improve turn times, strengthen customer service and retention, and achieve a more successful future.