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Purpose-driven AI is Transforming the Mortgage Industry for the Better

Blog Purpose Driven Ai

When companies harness their data to serve their purpose, the results are profound.

Browse almost any corporate documents of the last decade and you’re bound to come across the phrase ‘data driven’ somewhere in there. It’s meant to convey how the company is attempting to use the data it generates to inform its processes and decision-making. Instead of being guided by emotion or instinct, the data-driven organization relies on clear subjective facts that can be extracted from their own data.

The phrase has been used so often and so widely that it has become a cliché and, to some extent, we’re all guilty of it. But when you step back and think about it you realize that organizations should still be driven by a mission, by goals and purpose, just as they’ve always been. Data is not enough. Forward-looking organizations are making purpose-driven decisions informed by data, as opposed to data-driven decisions.

What’s the difference? Consider this answer from blogger Erwin Lima on the Hackernoon blog where he says, “It seems everyone wants to be data-driven, but if you think about it: data can't drive anything. What we need instead are purpose, and ethics. These are the things that we need to drive our decision making. And data, data analysis and emerging technology like AI can assist us.” 

Today’s cutting-edge artificial intelligence is transforming how organizations function and creating space for employees to focus more on their purpose than simply on fulfilling tasks that machines can do for them. That means more time and energy can be spent in client-facing operations.

Task-Specific AI is the next wave

As the 2020s get underway, the use of artificial intelligence has moved into real implementation with solid use cases and applications to work with, study and adapt. One-size-fits-all AI solutions that require skillful customization are no longer the only option. Today’s AI solutions are being designed to cater to specific tasks and niches, in order to add real value in particular areas.

Finance and lending are in the top five key sectors of the economy where experts believe artificial intelligence is going to play a transformative role in the near future, according to INC magazine, with the others being automotive, education, IoT and customer service. AI Foundry’s CEO Steve Butler believes, “More companies will turn to mortgage-specific robots with embedded industry knowledge to play a key role in the process.”

This theory is demonstrated in the tech solutions which AI Foundry has developed for Allied Mortgage Group, a full-service residential mortgage lender. The project is an AI Assistant called ARTIE (or the Artificial Intelligence Employee), and its goal is to significantly reduce the time needed per loan file from nearly an hour to just minutes.

AI Foundry has succeeded in developing advanced artificial intelligence, machine learning and machine vision to create cognitive robots that review loans, improve the speed and efficiency of mortgage processing, and deliver automation across all areas of the lending process.

The Limits of 1st Generation RPA

Many people seem to wrongly believe that automation has been at this point for some time and, just like data-driven, they threw around terms like robotic process automation (RPA) in the belief that purpose-built automation issues had been ‘solved’. This was a massive oversimplification, and only now is RPA making way for the intelligent digital workforce, as exemplified by Allied Mortgage Group’s ARTIE

Phil Hersht, the chief analyst of acclaimed IT blog, Horses for Sources, doesn’t mince his words when talking about RPA. “Can we move on from dumb admin bots that keep old process loops and apps stitched together and start looking at how enterprises can invest in intelligent workers that help us achieve much more intelligent interactions and experiences?” he asks. “Can we focus on intelligent digital workers tuned to deliver (and learn) superlative experiences from processes we have designed to bring our customers and employees together?”

In hindsight, it seems clear that RPA was only an early stage in the development of intelligent robots, and that the next wave of technology is beginning to deliver on what was promised.

So where will purpose-driven data have the greatest impact when it comes to mortgages and lending? Three sectors of the mortgage industry are at the forefront: 

  • Data Gathering – not just faster, but automatic: With cutting edge computer vision, organizations are able to take in a multitude of documents from different sources, extract the most important information, spot any errors or omissions and prepare a mortgage application in a matter of minutes, as opposed to days or weeks.
  • Loan errors or inconsistencies can be spotted early on and not when it’s too late: Problems with loan applications and their supporting docs, can wreak havoc with the closing or even worse, when attempting to sell your loan. Relatively minor mistakes, such as errors in the social security number, typos in an address or a missed signature box on a document can cost a great deal, when trying to resolve the issue after the loan closes. What would have taken manual workers days, even weeks, to discover is something that intelligent robots can pick up and flag in seconds so that the whole process keeps moving forward. In other words, intelligent robots expedite the origination, closing and post-closing process without defects in the loan. 
  • Loan Assembly Line: As the divide between the back and front office processes collapses thanks to technology, mortgages will begin using purpose-driven robots that work together to create a 21st century digital loan assembly line that can handle a mortgage application in seconds.

Intelligent robots that are designed for specific tasks can have enormous success thanks to their ability to work beyond the LOS; running comparisons, between documents and even performing calculations, as a second check we all could use. For example, when it comes to mortgage origination, you may have a Processing Review - Credit & Liabilities cognitive robot that flags and creates preliminary conditions for verification, based on calculations on data received directly from income documentation. Beyond income, many other cognitive robots exist to support and double check the work of people, such as the Processing Review - Assets cognitive robot which can flag and create preliminary conditions in the LOS for initial asset verification. In previous years, all these tasks would have fallen to a QC or closing department, who would have systematically had to work through them one by one. Today’s AI can route the correct information to each of those robots and get results in a matter of minutes.

As a result, the mortgage application keeps moving forward through the system, employees have more time to deal with customers, and the company is able to fulfill its stated purpose of offering world-class customer service and risk-free mortgages.

To find out more about what AI Foundry can do for you, get in touch today.

Read more of our predictions for AI and the Mortgage Industry in 2020 right here.