Businesses are using digital technologies to make things better, faster, and more efficient. They’re reducing errors and costs, and improving customer service. That’s what the Vice President of Modeling and Data Sciences for Fannie Mae, Peter Ghavami, said. AI and machine learning have been gaining traction in various industries over the past decade or so. It’s no different in the mortgage industry. They’re using AI and ML to automate processes, detect fraud, manage risk, predict defaults, and analyze customer behavior. It’s all about improving communication and personalization for a better mortgage experience.
Fannie Mae conducted a survey to see how lenders are using AI and ML. They found that familiarity and adoption of these technologies haven’t changed much in the last five years. Two-thirds of lenders are familiar with AI and ML, and only a small percentage have deployed or plan to deploy these technologies in the near future. Integration complexity, lack of proven success, high costs, and data security and privacy concerns are the biggest barriers to adoption. However, lenders see the value in using AI and ML to improve operational efficiency. They want to automate compliance reviews, detect fraud early in the underwriting process, and streamline various aspects of the mortgage industry.
AI and ML have the potential to transform the mortgage industry by automating data processing and identifying anomalies. This can lead to more efficient operations and better decision-making. While lenders recognize the importance of the “human touch” in customer interactions, they also see the value of leveraging AI and ML for back-end processes. As these technologies continue to mature, we can expect a collaboration between humans and AI/ML to maximize their respective strengths and provide a better mortgage experience for everyone involved.