Real Estate News

Will technology change mortgages in 2017?

Published: 28 Jan 2017

The idea of "machine learning," that is, computers recognizing patterns and acting on their own, is obviously a game changer for technology. According to Mortgage Professional America, AI could also play a role in overseeing mortgages.

Theoretically, smart systems could use analytics to make important decisions without completely erasing the need for human intellect. In the best case scenario, it might mean mortgage lenders are better able to serve their customers. Harnessing the power of AI could also lead to superior overall efficiency, as mortgage businesses make the most of their resources.

MPA spoke to Alex Kutsishin​, CMO of Sales Boomerang, who said that the mortgage sector was usually seen as behind the times when it comes to technology. He also acknowledged that, despite the steep learning curve, AI could eventually become a standard and expected part of real estate on which mortgage professionals rely.

"So when we talk about machine learning, some people want to build a computer to do something a human couldn't do," he said. "That's not how we look at it. We're building a machine that's going to do what a human could do, and would do."

Last year, anxieties about robotic "workers" taking jobs began to grow. More recently, the BBC reported that a Japanese insurance company, Fukoku Mutual Life Insurance, would use AI to replace 34 employees, reportedly in advance of productivity increases which could reach as high as 30 percent.

With this now in effect, it's not hard to think of a world where the same principles apply to mortgage companies. Regardless, lenders and buyers alike need to pay attention to new offerings and the benefits they could bring to the sector. As these new, exciting changes appear, buyers should still be wary of their properties and the title insurance costs they need to pay.