As we move toward the new year, many experts and economists are forecasting the housing market will continue to see growth. Now, one expert looks at the technology advancements we will see in 2020.
HousingWire sat down with Steve Butler, AI Foundry president and founder, who gave five trends to watch for artificial intelligence in 2020.
Now, Butler is expanding on his thoughts for AI with 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, Radius Financial Group co-founder and chief operating officer, 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, Polaski 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.