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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 48 December 2025 F E A T U R E S T O R Y and excitedly tell a story about meeting space aliens at school. It is clearly not true, but to hear the kid tell it, with all the excitement and hand waving and sound effects, it's a very convincing presentation. It is also very likely that the kid completely believes it, too, even though it only happened in their imagination. You see, large language models such as ChatGPT, Google's Gemini, xAI's Grok, and others all generate their responses in a probabilistic manner. They have been fed vast amounts of information and trained on it, but what they actually utilize is a vast set of probabilities. For example, the model knows that if the question relates to basketball, it is likely that the word "Michael" would be fol- lowed by the word "Jordan", but it doesn't actually understand who Michael Jordan is or what he accomplished. Every word, every sentence, and every paragraph is created using probability, not certainty or prewritten information. So, a model can easily respond with something that it calculates as being PROBABLE but didn't actually happen. That is what we would call a hallucination. Q: What are some of the most practical, day-to-day uses for AI in mortgage default law firms? Eyal: It can start at the beginning and assist in accepting referrals and collecting information from referral documents to open the file. It can draft pleadings policies, communication and training materials, search documents for specific information, generate templates, and review invoices for accuracy. It can also run QC checks on every file on a regular basis and flag exceptions. In my platform, AskTuring, the firm can upload all of their documents, like client guidelines and requirements and directives, fee agreements, policies, regulatory materials, etc., into the secure, private index, and the firm employees can then "talk to the documents." For example, the employee can ask the platform what a certain client allows in billing for a spe- cific task, and the Index will generate the answer based on its review of all of those documents, and also provide the user with a link to the specific page and paragraph where that info was pulled from. AI isn't a replacement for lawyers or paralegals—it's a powerful assistant that can handle routine, repetitive, or data-heavy tasks at speed and scale. Some of the most beneficial tasks AI can handle for a law firm are: • Document Automation—Gen- erating first drafts of complaints, motions for default, affidavits, and notices, and populating forms using data from the firm's case-manage- ment system (CMS). • File Review & Quality Control—It can flag missing or inconsistent documents in foreclosure or bank- ruptcy files. It can be used to verify if assignments or loss mitigation doc- uments are in place, or if files have missing or incorrect fee approvals. • Data Extraction & Summariza- tion—AI can read and summarize loan documents, notes, deeds, or payment histories and pull key data points (loan #, default date, borrow- er info, legal description, etc.) from large PDFs. • Bankruptcy & Litigation Sup- port—Monitor PACER or court dockets for bankruptcy filings, draft motions for relief from stay or proofs of claim with less manual effort, and compile payment histories needed for POC. • Compliance Checks—It can ensure that file timelines meet GSE, CFPB, or investor guidelines, and can auto- mate file audit reports for clients or servicers. • Billing and Invoicing—Read and extract information from incoming invoices, create outgoing invoices, and ensure the correct backup doc- uments are attached based on state, investor, and client requirements. Q: One of the biggest concerns that I have with using AI in the mortgage default industry is security and protecting private information. Is it even realistic to think that we can use AI in light of the security requirements of our clients? Eyal: Security is a big issue in our industry. The AI tool you use should have SOC2 certification and not share data with the foundational models. Self-hosted AI or enterprise-level privacy controls are big factors in the level of security. "AI isn't a replacement for lawyers or paralegals— it's a powerful assistant that can handle routine, repetitive, or data-heavy tasks at speed and scale." —Eyal Leeder, Co-Founder, AskTuring