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Predictions for AI and the Mortgage Industry in 2020

2020 Predictions

How Far Will Technology Advance in the New Year?

By: Steve Butler, President and Founder, AI Foundry 

Over the course of 2019, we’ve made significant progress using AI, machine learning, computer vision and RPA to automate document processing in the mortgage industry. And we have good momentum – customers are using our solution and seeing a positive impact in their business. However, technology continually evolves and changes. What is on the horizon for next year? What changes will we see in AI, how humans work with AI, and how it will affect their careers? 

Here are five predictions for 2020:

  1. AI enables “Minimal human hands” on loans. Due to advancements in AI and machine learning, within the next two years, we will see the majority of mortgage loans get manufactured and sold off (to Fannie Mae and Freddie Mac) with very little human involvement. It will be a much more automated, mechanized process, driven by AI. (In a recent article in Forbes, Keith Polaski, co-founder and COO of radius financial group, said that his company’s goal is to deliver all of its loans without a human touch to secondary mortgage market buyers like Fannie Mae or Freddie Mac.)
  2. AI becomes vertical-specific. We will see the adoption of vertical-specific intelligent robots that have the level of industry expertise required for mortgage processing. These intelligent robots will play a key role in the process. More companies will turn to mortgage-specific robots with embedded industry knowledge. (According to an Inc. Magazine story, five (billion-dollar) industries that will be impacted by AI include: real estate, automotive, education, customer service and IoT.)
  3. AI drives digital transformation to new levels. The mortgage process is very paper-based and “analog.” However, robots need digital data. Solutions that can turn analog processes into digital ones will help the mortgage industry make new advances in digital transformation, replacing many of the old analog processes that have been used for decades (e.g. thousands of paper documents, verbal conversations to check and re-check information, emails and written communication throughout the loan process).
  4. AI skills elevate executive careers. An increasing number of mortgage executives will reach proficient level on AI as they embrace learning and using AI technologies. These new AI-savvy executives will enhance their careers, separate from their peers, and create opportunities to improve their business. (For example, Keith Polaski, co-founder and COO of radius financial group, stated in this Forbes story that by using AI, his company has reduced their loan manufacturing cost by 70%.)
  5. AI creates “virtual assembly lines.” The mortgage office will change and begin to look more and more like a series of connected robots accomplishing discrete functions on the loan lifecycle. A “loan assembly line” will begin to take shape.

About the Author

Steve Butler, Founder & President

Steve leads AI Foundry, which automates and streamlines enterprise business operations. Under his leadership, AI Foundry creates software solutions that makes data “actionable”. Steve’s leadership includes CEO positions for high-performance data analysis, enterprise software, system management and CAE companies.
Connect with Steve on LinkedIn

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