Artificial Intelligence (AI) is a buzzword that’s getting tossed around a lot these days. It’s often used to describe technology such as self-driving cars, and it’s even made its way into consumer technology with products like Amazon’s Alexa and other virtual assistants. But what does AI have to do with the mortgage market?

Artificial intelligence is changing the mortgage industry. AI is gaining popularity amongst mortgage lenders and mortgage companies to use in their loan origination process. In addition to simplifying the mortgage application, artificial intelligence can also be used for underwriting, making all loan decisions instead of bringing on human underwriters.s

How will AI be changing the Mortgage Industry?

The mortgage industry is one of the oldest, most regulated, and most consistently profitable sectors in the US economy. But as technologies like artificial intelligence and blockchain begin to disrupt the mortgage market, what role will they play? Let’s check out the following the ways in which AI will be changing the mortgage industry:

  • Improves customer experience. The mortgage industry is beginning to see the introduction of intelligent virtual assistants, such as Amazon’s Alexa, Google Home, and Apple’s Siri, which, if properly implemented, could have a major impact on customer experience. Assistants can not only provide answers to customer questions, but they can also open up new avenues for the customer to interact with the lender, such as the ability to schedule mortgage appointments and estimate mortgage payments.
  • Decreases errors in data entry. The mortgage industry has been the main beneficiary of artificial intelligence (AI) and machine learning (ML) in recent years. These innovations have enhanced existing processes and introduced innovative new ways to create, process, and approve mortgages. However, there’s still room for improvement, and that could mean faster approvals, lower costs, and more accurate lending decisions.
  • Enhances the productivity of employees as well as job satisfaction. In recent years, AI technologies have become mainstream; they are used across many industries, including healthcare, finance, and telecommunications. The mortgage industry is next on the list, and it is expected to experience significant disruption in the coming years due to AI. Studies show that AI solutions have the potential to increase employee productivity and job satisfaction—and set the stage for a healthier workforce and reduced costs.
  • Provides equal opportunities to all consumers. AI will impact the mortgage industry in many ways. AI-powered solutions, from voice assistants to chatbots, will be the main ways consumers interact with mortgage lenders of the future. They’ll interact with the lenders, ask questions, and apply. While AI-powered experiences may create some challenges, lenders will begin to realize the importance of creating less biased experiences by providing equal access to all levels of consumers.

Artificial Intelligence (AI) is predicted to be the next industrial revolution. Many industries will adopt AI technology in their business models as it becomes more affordable, becoming integral to their future success. However, the insurance industry is still in its early days of embracing AI, leaving room for mortgage professionals to lead the way. If you’re looking for human advice in the Langley area we recommend checking in with a mortgage expert at MortgagesLab.

How Can Mortgage Lenders Implement the Use Of AI?

The housing industry is already using AI in a variety of ways, from scanning houses and determining their value to recognizing property features, like pools and outbuildings. Artificial intelligence (AI) and machine learning (ML) are rapidly becoming key to making many business processes more efficient.

How can they start implementing AI? Well, here are some strategies that they use to ensure a more efficient AI workflow:

  • Leverage predictive analysis. The AI revolution is underway, and mortgage lenders are turning up as early adopters. By leveraging predictive analytics, mortgage lenders can better identify, analyze, and capitalize on trends within specific industries. Such insights can help lenders identify, analyze, and capitalize on trends within specific industries. These trends can inform future borrower behavior and predict the chances of a borrower defaulting on a loan or failing to complete it. It can also help lenders identify new loan products and predict the outcomes of new products. 
  • Personalized solution. Artificial intelligence (AI) is transforming the way we live, work, and play. As technology evolves, AI helps lenders better match people with financial products that fit their needs. Well, Artificial intelligence (AI) is advancing at a breakneck pace, and mortgage lending is no exception. The mortgage lending industry has been slow to innovate, but as the Consumer Financial Protection Bureau (CFPB) has pushed lenders to digitize their processes, AI technology is making headway in lending. The mortgage industry is evolving quickly, and lenders must embrace AI to optimize mortgage business processes.
  • Using trusted knowledge base systems. The use of trusted knowledge base systems is a strategy that mortgage lenders can use to implement AI. This is a game-changer, and lenders are using it. In 2020, artificial intelligence (AI) and virtual assistants will significantly change the way people work, and lenders are no exception.
  • Chatbots help every customer when it comes to processes. Lenders that use AI to help customers navigate their mortgage processes will also be able to offer a seamless experience. By streamlining the lending process, mortgage lenders are able to offer increased levels of personalization and convenience for customers.

Artificial intelligence (AI) is quickly changing the way businesses operate. While AI has been used for decades, the breakthrough in computing power and the accompanying surge of data have fueled AI’s rise to its current prominence. Mortgage lenders have a lot to gain by harnessing AI, and they can do so quickly—it just takes the right partnerships and strategies.

AI Will Be Taking Over the Mortgage Industry: Is It A Good Thing or Bad Thing?

The mortgage industry has been too slow to adopt new technology—especially technology that is powered by artificial intelligence. That’s because the mortgage industry is highly regulated, and companies can’t simply throw their laptops and desktops out the window and embrace automation. But regulators are waking up and realizing just how valuable AI can be to an industry that is struggling to keep up with changing consumer expectations.

What will artificial intelligence (AI) do to mortgage lending? The simple answer is this: AI will enable lenders to quickly assess applicants’ credit histories and approve loans, potentially saving borrowers days. Studies find that AI could be used to scrutinize applicants’ loan histories more efficiently than humans. Specifically, AI could help lenders take basic steps to verify applicants’ identities, assess their creditworthiness, and detect any evidence of fraud.

Other Important Things to Consider…

Artificial Intelligence (AI) is taking over the business world, and mortgage lenders are no exception. Artificial Intelligence is already making inroads into artificial intelligence and machine learning, with companies like Apple, Google, Amazon, Facebook, and Microsoft all investing heavily in research and development. While AI is making waves across industries, the adoption rates among mortgage lenders have been slow, with AI adoption rates hovering around one percent of mortgage lenders.

Mortgage lenders are facing increased pressure from customers, as they expect their loans to be approved faster, with fewer obstacles and complications. Mortgage lenders are looking for ways to modernize their businesses, and artificial intelligence is one tool that is rapidly gaining interest. Using AI to calculate loan eligibility, assess credit risk, and process documents can be a faster, more accurate way to do these jobs, and AI systems are already providing mortgage companies with valuable data to improve their bottom line.

AI presents enormous opportunities to the mortgage industry, and that’s precisely why leading mortgage lenders are already making big investments in this new technology. AI promises to make the mortgage process faster, more efficient, and more accurate, and that could change the way consumers shop for home loans. But like any new tech, mortgage lenders must test AI solutions to make sure they work as intended.