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Mortgage Providers Look to AI to Process Home Loans Faster

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.

PHOTO: MARK BLINCH/REUTERS

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.

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