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I N D U S T R Y I N S I G H T / T E R R E L L C A S S A D A
A new study or survey is released almost daily that suggests
that artificial intelligence (AI) and machine learning will
revolutionize our lives. is past summer, the Treasury
Department released a report in which the agency recommended
facilitating the development of AI due to the potential it holds
for financial services companies and the overall economy. e
agency also found that AI was one of the three biggest areas of investment for
financial services companies last year.
However, it's not just the Treasury
Department that is backing AI and machine
learning. e Federal Reserve has recognized
the two concepts, as has the Financial Industry
Regulatory Authority (FINRA), which noted
that AI could help banks prevent money
laundering and improve data management
and customer service. However, the mortgage
industry, with its byzantine regulations and
myriad processes, could stand to gain the
most by adopting AI and machine learning.
It's already starting to happen—and there are
benefits for every segment of the mortgage
lifecycle, including for default servicing.
UNDERSTANDING AI AND MACHINE
LEARNING
e key to understanding how AI and
machine learning will impact mortgage
loan origination, acquisition, and servicing
is knowing how they work. For the sake
of simplicity, the terms are often used
A CHANGE IN
THE ECOSYSTEM
