HOUSINGNEWS REPORT
FEATURED ARTICLE
AI Applied to Fintech The AI leap from factories to finances is likely to be a lot shorter than may be realized. As Mark Cuban said earlier this year: “artificial Intelligence, deep learning, machine learning — whatever you’re doing if you don’t understand it — learn it. Because otherwise you’re going to be a dinosaur within three years.” Consider the problem of loan applications. From the borrower’s perspective applying for a mortgage is a huge hassle with tons of paperwork and lots of nosy questions. The AI alternative is to use an online form, provide some basic information and bingo; you’ll have a solid sense of your borrowing ability in minutes. (see “Mortgage of the Future Will Be Designed for Digital Natives” in April 2017 Housing News Report) Hyperbole perhaps, but what if he’s right?
learns a consumer’s preferences and surfaces new home listings they might like, and have trained machines to see real estate photos and understand their contents (i.e. our trained machines can determine if they’re seeing a photo of a kitchen or bathroom, and what type of features it has, such as hardwood floors or granite counters), to personalize and help streamline the house hunt journey.” artificial intelligence technology tailored for legal work have led some lawyers to worry that their profession may be Silicon Valley’s next victim,” reports The New York Times. It says a recent study estimates that as much as 13 percent of all billable hours can be eliminated just with today’s technologies. • Even attorneys have begun to feel the AI heat. “Impressive advances in
What’s really going on is that lenders are increasingly interconnected with data sources. When a borrower applies for a speedy approval, hordes of electrons are instantly dispatched to the far corners of the financial world. Information — data points — from credit reports, bank accounts, public property records and other sources are instantly gathered, analyzed, and then plugged into various mortgage options. But wait! Aren’t lenders required to collect paper tax returns and pay stubs before approving mortgage applicants? The rules don’t actually say such specific paperwork is necessary. What’s required, according to Dodd-Frank, is “a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan.”
From the borrower’s perspective applying for a mortgage is a huge hassle with tons of paperwork and lots of nosy questions. The AI alternative is to use an online form, provide some basic information and bingo; you’ll have a solid sense of your borrowing ability in minutes.”
JUNE 2017
ATTOM DATA SOLUTIONS • P5
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