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55 November 2025 F E A T U R E S T O R Y November 2025 » discharge success, predictive models may unfairly assign those debtors worse odds. Furthermore, even in instanc- es where race is not a determining factor within a model, other inputs can function as proxies for socioeconomic disadvantage, which could cause greater harm to individuals of certain races. The adage that "correlation is not causation" applies here, but the AI models may not identify such a distinction. To add additional challenges and pitfalls to the use of AI, the "black box" nature of many AI systems can make it difficult to spot bias. While AI tools can often produce information such as risk scores or predictions about whether a case will be dismissed, the bots don't sufficiently explain what factors led to the conclusions reached. These decisions cannot be tracked step by step, almost as though they were made inside a box we cannot see within, leading to the term "black box." That means an unsuspecting or less careful attorney might rely on the AI output without realizing it's based on biased data. This kind of bias is hard to detect and harder to challenge, which can lead to unfair outcomes and undermine confidence in the system. To help prevent bias when using AI in Chapter 13 bankruptcy cases, there are a few important steps attorneys and courts should take. First, it's important to be transparent. Everyone involved should know when AI tools are being used, whether it's to draft documents, make predictions, or shape legal strategies. This should be clearly stated in court filings so there's no confusion about what influenced the case. Next, AI tools should be easy to understand. If a model makes a prediction, it should also explain what factors led to that result. That way, lawyers can double-check the reasoning and make sure it actually fits the legal facts. Regular checks for bias are also crucial. Even if the tool doesn't use sensitive personal information, it can still treat people differently based on where they live or how much they earn. That's why developers and users should test how often the tool makes mistakes and whether those mistakes fall more heavily on certain groups. Attorneys also have to carefully review and verify anything the AI generates, especially legal arguments or case citations, since they are still responsible for what gets filed. Finally, if AI-gen- erated analysis is presented in court, it should be held to the same standards as expert testimony. That means it needs to be reliable, relevant, and backed by solid evidence. These steps help make sure AI supports fair and informed decision-making instead of reinforcing unfair outcomes. In short, while AI has the poten- tial to drastically improve Chapter 13 practice, such as by speeding up client intake, helping with document drafting, and offering useful predictions, if these tools aren't carefully designed, regularly checked, and properly monitored, they can end up reinforcing unfair patterns and perpetuating biases. Without prop- er oversight, AI could end up making the system less fair instead of more efficient. FUN FACT: One of the paragraphs in this article was entirely written by AI. Can you tell which one? 1 Editor's Note: This piece first appeared in the Q3 2025 edition of Legal League Quarterly. 1 It was the paragraph providing advice on how to prevent AI bias. Subscribe to MortgagePoint and MortgagePoint Digital now! Visit themortgagepoint.com/mp-access to take advantage of our special offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? JULY 2025 Magazine YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS Behind steady economic growth, cracks are starting to show, from stalled sales to diverging regional trends. What do the experts say is coming next? Also in this Issue: The Exchange: Industry Insights From Fannie Mae's Malloy Evans AUGUST 2025 Magazine YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS 2025 AGENT & BROKER EXCELLENCE THE RESURRECTION OF VACANT REO AUCTIONS: GOOD NEWS FOR HOUSING ALSO IN THIS ISSUE: HOW TO COMBAT LOAN APPLICATION ABANDONMENT Borrowers start the journey to homeownership with clear intent—but somewhere between application start and submission—they run into friction, confusion, and a lack of immediate support ... and then they're gone. PROACTIVE, NOT REACTIVE: ENGAGING BORROWERS EARLY TO PREVENT DELINQUENCY THE EXCHANGE: PHIL CRESCENZO JR. The Nation One Mortgage VP shares his outlook on a potential end to conservatorship, the impact of credit score-based pricing, and why lenders need to keep messaging simple and focused. As the market evolves, MortgagePoint highlights agents and brokers who elevate the client experience and contribute to a resilient, service- focused housing industry.