AI for Mortgage: “Do or do not. There is no try”
As AI moves from hype to layers of solutions all defined by data, the belief that using familiar approaches will create outsized results is a false narrative. AI requires a holistic design and implementation that may look familiar—until you begin to integrate and scale. Apple just created AI consumer “legitimacy.”
Historically, the mortgage industry during the summer months racks up their largest volumes, their margins against the slower seasons, and the “nest egg” for operational improvements. To state the obvious, the taming of inflation utilizing interest rates against continually rising home prices has frozen many buyers out of the markets.
With 2023 touching 40-year lending lows (<$1.5T USD), the arrival of innovative technologies and capabilities—e.g., (gen) AI, AIaaS, DaaP—the imperatives for continuous operational improvements have never been greater especially with revised 2024 lending estimates just touching $1.8T USD. Indeed, the markets are showing signs of a bounce, but is it a false positive? Will the bounce only benefit those larger originators or servicers? Will any recovery be uneven, forcing IMB’s from the markets?
Researchers, vendors, and advisors are running their updated scenarios as we approach mid-2024. Will they, as many have done for the last 18 months, push their future predictions onto the darling of business leaders and technologists that has been 40 years in development—artificial intelligence (AI)? If they do recommend ‘intelligent” decisioning based on standardized, qualified, and alternative data, what organizational, process, and personnel challenges must be overcome? Will tackling one area or solution (see Figure 1) provide value by itself?
As we all are acutely aware, the mortgage markets moving forward are far more than technology. The changes fundamentally begin with the data, vast, and alternative (not within the enterprise or even industry) data linked together in conceptual meshes or fabrics. This approach alters the IT and application provisioning to data as the foundation—not a fragmented or siloed repository or mart.
For the full article, please go to the national Mortgage Bankers Association website and click on the link –> Mark Dangelo on AI for Mortgage: ‘Do or Do Not. There is No Try’ – MBA Newslink