Robot Mortgage: AI Mortgage Tools, Bias, and My Thoughts
Our financial system isn’t perfect, and of course, that includes the mortgage industry. Innovations in artificial intelligence (AI) are one avenue through which mortgage professionals hope to create change, but is machine learning really a panacea for issues like inequality, inequity, and red tape in the mortgage industry?
The Rise of AI-Driven Mortgage Approvals
Some mortgage industry leaders are predicting that AI-driven mortgage approval 2025 will dominate in the coming years. In 2023, a survey conducted by Fannie Mae found that 70% of surveyed mortgage professionals were already investing in machine learning in mortgage industry tools. Don’t believe it? Just look at the growing list of AI mortgage tools that claim to streamline everything from underwriting to customer service.
As the tech industry continues to ride its AI-high, it’s possible that AI mortgage tools could soon enable near-instant decision-making. For consumers, this could mean getting approved for a mortgage within minutes rather than days. From a business perspective, this innovation appears to align perfectly with the goals of improving efficiency and meeting client expectations in a timely manner.
The Problem with "Neutral" Technology
But before we dive headfirst into an AI-driven mortgage approval 2025 future, it’s important to recognize a critical issue: technology isn’t purely objective or neutral. In a comprehensive report presented by UN Special Rapporteur Ashwini K.P. at the Human Rights Council, it was revealed that historical biases are embedded in artificial intelligence and machine learning algorithms. This revelation raises significant concerns about how AI could impact fair lending practices.
Here’s the crux of the issue: a human mortgage professional can be held accountable for understanding and adhering to fair lending laws. One biased loan officer—while problematic—represents an isolated case. But when an AI system learns from biased historical data or processes, those biases can be amplified and perpetuated at scale, effectively polluting the entire system. This is why understanding AI bias in mortgage approvals is crucial. And let’s face it: all humans have biases, whether conscious or unconscious, which means the data we create and input into AI systems is rarely free from prejudice.
The Need for Scrutiny and Oversight
More scrutiny is absolutely necessary when it comes to the utilization of artificial intelligence in the mortgage industry. Using an AI chatbot on your website’s homepage is one thing, but using a machine learning algorithm to decide who gets a mortgage and who doesn’t? That’s a completely different ballgame.
Consider this: fair lending laws exist to protect individuals from discriminatory practices. If an AI system unintentionally discriminates against a borrower based on race, gender, or another protected characteristic, who is held accountable? These are questions that the industry needs to answer before fully embracing the future of mortgages with AI for decision-making processes.
Why Human Touch Still Matters
At the end of the day, I believe the mortgage industry wouldn’t be the same without a human, personal touch. Going above and beyond for clients is just part of what I do—it’s what I would want someone to do for me. Empathy in mortgage lending is irreplaceable and remains the cornerstone of effective service. I got into this industry to help people and change lives, and I’ve had the privilege of doing just that.
The reason why human mortgage professionals matter is clear: empathy, connection, and compassion are things that can’t be replicated by machines. While AI can be a powerful tool to enhance efficiency and productivity, it shouldn’t replace the human element that makes the mortgage process personal and meaningful. After all, buying a home isn’t just a financial transaction; it’s a deeply personal milestone.
As we move forward, let’s embrace innovation while also safeguarding the mortgage industry ethical AI use and the values that make our industry truly impactful. The future may be high-tech, but it should also remain high-touch.
The Team Jerry Pounds Difference
When you work with Team Jerry Pounds, you won’t just receive a mortgage. You’ll experience the human touch that is key in this industry. That’s a promise!
Never hesitate to reach out to our team, whether you need my expert opinion on the use of AI in the mortgage industry, or if you’re ready to make Pittsburgh your home.
