Today, some lenders are using generative AI to increase the amount of loans they can process and help borrowers learn about different loan products. How would you feel to learn that every time you communicate with your lender, AI is also on the line, taking notes?
One commonly used technology in underwriting is OCR, or Optical Character Recognition. OCR allows a loan officer or underwriter to upload an image of text, printed or handwritten, and have that text transferred to a digital format. Chat features on lender sites are nothing new, but with advances in technology, they’re able to go deeper than before. Consumers can use the chat feature to learn more about different loan products, see what they may qualify for and start the loan process while talking with the AI.
Jaynes explains that generative AI can distill this information into points to coach the loan officer into helping you with your mortgage. “We’ve been able to identify correctly the type of document on 70% of those documents of the one and a half million coming in, and extract over 90% of that information on a document,” says Zook.
Not only does this free up attention to focus on the client but also having the AI record the information lowers the margin of human error, says Zook.While generative AI may be reducing human error, the technology itself isn’t immune to errors. Known as “hallucinations,” these errors can pop up in many ways.
The problem is that, according to Jaynes, this approach doesn’t consistently get it right, and that doesn’t cut it. So, calculating Another concerning area where AI hallucinates is in regards to racial bias. Housing in the U.S. has had a long history of racism, with discriminatory practices such as