The technology is speedier than manually processing mortgage applications, but some worry it also is more prone to errors.
By John Murawski, Wall Street Journal Pro | Artificial Intelligence
March 18, 2019 4:53 a.m. ET
The home loan industry is looking to artificial intelligence to shorten the wait times for a mortgage approval,
from a month or more to a tolerable week or two.
A speedy loan turnaround not only moves capital for banks
and investors; it also reduces the reliance on costly human labor.
“Mortgages take forever to close,” said Al Pascual, senior vice president of research at Javelin Strategy & Research in Pleasanton, Calif. “If they can cut a week off the mortgage process, that’s meaningful.”
The industry took a step in that direction last month, when Ellie Mae Inc., a major player in home loans, started offering an AI option to its 3,000 customers—banks and other lenders—to speed-r
ead mortgage applications for accuracy and completeness.
Ellie Mae, a Pleasanton-based software and services company that processes about 40% of all U.S. home mortgage applications, selected an AI technology developed by Wakefield, Mass.-based home loan data automation outfit AI Foundry.
“They will market their services directly to our customers,” said Joe Tyrrell, Ellie Mae’s executive vice president for strategy and technology.