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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 48 November 2023 E X P E R T I N S I G H T S DIFFERENTIATING AI APPLICATIONS IN THE MORTGAGE SPACE As Souren Sarkar of Nexval describes, building a culture of innovation that supports the adoption of disruptive technologies is like unlocking a hidden treasure. Q: What is generative AI, and what makes it different than other types of AI? Generative AI stands out from other types of AI due to its unique capabilities and focus. Generative AI, or generative models, uses a wide range of AI tech- niques, such as machine learning algo- rithms, deep learning, generative adversar- ial networks, and large language models to mimic the human creative process. Unlike other types of AI that use and recognize existing data to generate output, generative AI can create new, original data, like images, texts, and music. It does not just ingest human inputs to return a "Yes" or "No" answer or, at best, to churn out an insight or recommendation. It takes human input and then actively creates an artifact that resembles the input provided, yet it is different and wholly original. It can also assimilate data from existing content (images, video, audio, or text) to create digital assets that feel completely unique. From creating a fine art masterpiece and composing original music to writing text, generative AI can not only generate new outputs, but can also improve them. Q: How could generative AI be applied in the mortgage industry to help reduce human effort and errors? Generative AI can provide plenty of use in the mortgage industry in cases that save time and money, and reduce errors as well. For example, it can craft servicing messages that are nuanced, polite, yet effective and comprehensive, enabling servicers to connect with customers on a personal level without human assistance. It can help create new, accurate borrow- er profiles rather than just finding and matching patterns that it has met in the past, like traditional AI does. It can help analyze a borrower's financial profile to generate a more accurate assessment of the borrower's creditworthiness. It can even recommend the amount of loan and interest rates based on the borrower's financial history. Q: How can generative AI be used to improve customer experience and engagement? Generative AI is a game-changer when it comes to enhancing the customer experience and engaging borrowers. For example, many borrowers face lengthy delays when reaching out to their loan officer for even a simple query. With generative AI-based chatbots, customers can get 24/7 customer service and faster response times, along with personalized interactions. By analyzing customer data and preferences, generative AI can create tailored loan product recommendations, personalized marketing messages, and even support interactive virtual assis- tants to help borrowers throughout the mortgage application process. Generative AI-powered chatbots can also use natural language conversations to answer com- mon queries and provide financial advice. Q: What are the challenges involved in training and operating generative AI models? The old saying, "garbage in, garbage out" applies here. Generative AI models produce results based on the data you use Souren Sarkar, CMB, is President and Co-Founder of Nexval, a Miami, Florida-based technology company specializing in mortgage automation processes and IT infrastructure upgrades. Sarkar has more than 25 years of experience as a technology leader in the mortgage and banking arena and is an expert at improving the performance and scalability of service-driven businesses using workflow automation. MortgagePoint had an opportunity to chat with Souren about the emergence of artificial intelligence (AI) in the mortgage space and how it is easing processes for both customer and lender alike.