Generative artificial intelligence (AI) has great potential to reduce costs and improve customer experience, but regulations have not kept up with the development of governance programs, industry experts say regarding the introduction of AI into mortgage lending. Ta.
Bias, discrimination, privacy and security concerns related to consumer information are among the biggest risks in deploying generative AI, said Brian Stuckey, director of Rocket Ethical AI. rocket mortgage.
“There is still no regulation specific to AI (…) We have to operate under the Fair Lending Act. Have we developed a model that is actually fair? We need to make sure we are not infringing on property,” Stuckey said at the 2023 AI Session. Mortgage Bankers Association Annual Convention & Expo in Philadelphia on Monday.
“This rapidly evolving technology comes with many risks. There are things we still don’t know, and I think all of these risks impact data privacy, cybersecurity, and other concerns.” Chief Information Officer Michelle Bushman said. American Pacific Mortgage Corporation.
The panel focused on the latest findings fannie mae Mortgage lender psychological survey. More than one in four (26%) financial institutions believe the biggest risk in using AI and machine learning (ML) is misinformation, followed by cybersecurity (18%) and bias and discrimination. (16%), followed by consumer-related privacy and security concerns. Information (15%).
Research shows that lenders implementing generative AI in their mortgage lending environments want to see operational efficiencies.
AI-based compliance reviews (50%), AI-based anomaly detection automation (39%), and AI-based mortgage delivery (32%) were highlighted as the most attractive AI/ML application ideas.
Generative AI is still in its infancy, Stuckey added, and it’s important for lenders to experiment with using generative AI to see what works and what doesn’t.
Businesses will be significantly impacted whether they invest in AI or not, as AI is expected to “bring lasting change” unlike other technology hype cycles, Bushman said. I am.
“Lenders need to work with legal, risk, compliance, and IT to define AI governance before implementing AI technology,” Bushman said.
It’s also important to ask due diligence questions about data security, since vendors may not have as much experience leveraging AI, said Joseph Zeibert, vice president at the company. FicoIt pointed out.
“There is not one playbook[for implementing AI](…) there is not the same AI tool for every problem,” Zeibert said.
Leveraging data sources will be a way for lenders to differentiate themselves from other competitors, said Felipe Miron, senior sales manager for housing finance. Amazon Web ServicesSaid.
“How can we start using it with other data sources that we have? That’s where the real value in competitive advantage lies (…) How do we use data that our competitors don’t have access to? Do you want to use it?” Miron said.
