AI and the Mortgage Industry

February 17, 2021
Kourtney Manley

In this age of technology and digitalization, it will be hard to find a person who hasn’t heard of Artificial Intelligence. Whether it be Apple’s implementation of the virtual assistant, Siri, or Tesla’s fleet of self-driving vehicles, consumers have had many experiences recently with AI and it is changing the way many things are done. Another less notable application of Artificial Intelligence is the automation of the mortgage industry and it has been extremely beneficial for everyone involved. We will look at what Artificial Intelligence is, how it is developed through machine learning, and the benefits it has had for the mortgage industry.

Artificial Intelligence, simply put, is the replication of human intelligence with the use of computers and technology. With this intelligence, these smart computers can complete tasks that would normally be done manually by humans. This function is demonstrated by the examples I gave earlier, Siri and Tesla’s self-driving car fleet. Siri, a virtual assistant, allows Apple customers to do things such as to get answers to questions they may have, get directions, and check the weather. This is done all through voice command. It is a revolutionary technology that is sure to be a cornerstone of Apple because it creates more convenience for customers. Tesla’s cars are the same way. They can drive themselves and their passengers without human intervention. Both of these technologies are great examples of what AI is and how it is being utilized in today’s world.

Machine Learning is generally considered to be a subset of Artificial Intelligence as it is when AI gains even more intelligence by doing tasks over and over. This allows AI to begin to remember the tasks and their processes. An example of this would be the FaceID technology also developed by Apple. Once the technology has recognized someone’s face so many times, it begins to get better at recognizing it. This would allow recognition even when, for instance, the lights are low so it will be difficult to see. This allows AI to continuously get better.

This technology has had two major benefits for the mortgage industry. First, it has really helped lenders to reduce turn times. Humans can only work so many hours per day before they are burnt out, and this is not a problem for AI. They also don’t need breaks, so they can get much more done in shorter time periods. Secondly, AI has been very beneficial for customer service purposes. It allows for personalized advisement and 24/7 service. This is also just the tip of the iceberg, as this technology will be able to do even more in the future. It will be something to look out for!

Written by Kourtney Manley, Business Analyst at OnlineApplication

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