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Mortgages


The Path To "No-Touch" Mortgage

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When we started our IDP business, our assumption was that cost savings would be the main driver for purchasing decisions -- in other words, how we can help our customers save 30–50 percent on data processing costs. But the last six years have taught us those cost savings are the number two priority for most companies looking for IDP solutions. Our customers have taught us that the number one thing is being able to effectively scale their operations. Today, data processing is heavily dependent on manual labor. We've worked with customers who were worried about their business picking up more volume because they just did not have the capacity to handle that increase.


A.I. Bias Caused 80% Of Black Mortgage Applicants To Be Denied

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Artificial Intelligence and its inherent bias seems to be an ongoing contributing factor in slowing minorities home loan approvals. An investigation by The Markup found lenders were more likely to deny home loans to people of color than to white people with similar financial characteristics. Specifically, 80% of Black applicants are more likely to be rejected, along with 40% of Latino applicants, and 70% of Native American applicants are likely to be denied. How detrimental is the secret bias hidden in mortgage algorithms? It's important to note that 45% of the country's largest mortgage lenders now offer online or app-based loan origination, as FinTech looks to play a major role in reducing bias in the home lending market, CultureBanx reported.


FICO scores leave out 'people on the margins,' Upstart's CEO says. Can AI make lending more inclusive -- without creating bias of its own?

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Dave Girouard, the chief executive of the AI lending platform Upstart Holdings Inc. UPST, -2.51% in Silicon Valley, understood the worry. "The concern that the use of AI in credit decisioning could replicate or even amplify human bias is well-founded," he said in his testimony at the hearing. But Girouard, who co-founded Upstart in 2012, also said he had created the San Mateo, Calif.-based company to broaden access to affordable credit through "modern technology and data science." And he took aim at the shortcomings he sees in traditional credit scoring. The FICO score, introduced in 1989, has become "the default way banks judge a loan applicant," Girouard said in his testimony.


The Green way of defining AI in Mortgages

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When one considers the top view of the mortgage industry, it is difficult to comprehend its associated carbon footprint. After all, it primarily involves a few transactions and some amount of paperwork, right? Dig deeper into the ecosystem, and you will discover the impact of offices, computers, data centers, paper mails, and travel – each of these elements contributing to the overall carbon footprint in one way or another. While some of these are invariable and bear some amount of environmental costs, others can be curbed in measurable ways. And in light of point #10 in our Green 2030 resolution, it is imperative that financial institutions take actionable measures towards the decarbonization of the economy.


Bias isn't the only problem with credit scores--and no, AI can't help

MIT Technology Review

But in the biggest ever study of real-world mortgage data, economists Laura Blattner at Stanford University and Scott Nelson at the University of Chicago show that differences in mortgage approval between minority and majority groups is not just down to bias, but to the fact that minority and low-income groups have less data in their credit histories. This means that when this data is used to calculate a credit score and this credit score used to make a prediction on loan default, then that prediction will be less precise. It is this lack of precision that leads to inequality, not just bias. The implications are stark: fairer algorithms won't fix the problem. "It's a really striking result," says Ashesh Rambachan, who studies machine learning and economics at Harvard University, but was not involved in the study.


MQube launches AI-powered mortgage platform

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MQube has launched MPowered, a platform it has developed alongside brokers. The platform is designed to improve ease of use and maximise the benefits of proprietary AI technology to give advisers speed, certainty, and control over how they offer mortgages, the firm detailed. MPowered Mortgages has been launched as MQube's own lending brand, facilitated on the MPowered platform with £2bn in lending capacity for 2021/22. MPowered Mortgages are launching into the non-regulated buy-to-let market, offering lending to individual, limited company and portfolio landlords at competitive rates. MQube is partnering with additional lenders and funders to provide a broad range of products on the MPowered platform.


Nicolas Babin disruptive week about Artificial Intelligence - March 1st 2021 - Babin Business Consulting

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I am regularly asked to summarize my many posts. I thought it would be a good idea to publish on this blog, every Monday, some of the most relevant articles that I have already shared with you on my social networks. Today I will share some of the most relevant articles about Artificial Intelligence and in what form you can find it in today's life. I will also comment on the articles. The purpose of the Association for the Advancement of Artificial Intelligence, according to its bylaws, is twofold.


AI has exacerbated racial bias in housing. Could it help eliminate it instead?

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This discussion has been edited and condensed for clarity. McIlwain: When I testified before Congress last December about the impact of automation and AI in the financial services industry, I cited a recent study that found that unlike human loan officers, automated mortgage lending systems fairly approved home loans, without discriminating based on race. However, the automated systems still charge Black and Hispanic borrowers significantly higher prices for those loans. This makes me skeptical that AI can or will do any better than humans. Did you draw the same conclusions?


Google, FinTech group Unifiedpost team up on AI data capture

ZDNet

Google and Unifiedpost have announced a collaboration that could see Google's Procurement DocAI solution applied to documents supplied by over 400,000 businesses across Europe. On Wednesday, Nelson Gonzalez, Product Manager at Google Cloud said that Procurement DocAI will be used by Unifiedpost, a FinTech organization with a presence in 15 countries. The company handles procurement documents for over 400,000 small and medium-sized businesses and more than 250 enterprise players, a time-consuming and complicated task -- but it is thought that AI could streamline the process. See also: Google's Lending DocAI streamlines mortgage applications with artificial intelligence Announced in September, Procurement DocAI uses artificial intelligence (AI) models to automatically capture valuable information from documents and various forms of unstructured data. Unifiedpost intends to work with Google to refine the solution and use it to capture data from documents including invoices, e-invoices, Know Your Customer (KYC) records, and payment services ranging from IBAN notices to PSD2 payments.


Global Big Data Conference

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The new solution is geared towards cutting through red tape and paperwork for borrowers and lenders. Google has announced the launch of Lending DocAI, a dedicated artificial intelligence (AI) service for the mortgage industry. On Monday, Google Product Manager Sudheera Vanguri said the new solution, now in preview, has been designed to transform unstructured datasets into accurate models able to speed up loan applications by accurately assessing a borrower's income and assets. To streamline the loan application process, dubbed "notoriously slow and complex" by Vanguri, Lending DocAI has been built with AI models that specialize in document types related to loans and is able to automate "routine" document reviews so mortgage providers don't have to. The executive says that in turn, this will speed up the mortgage and loan application workflows, including the processing of loan sources and mortgage services.