As the cost to do business increases due to regulatory and other burdens, one expert explained lenders will increasingly look to artificial intelligence to replace humans, but he has one question: will Millennials accept it?
Nominations for HousingWire’s Tech100 Award opened at the beginning of this month, and now the early-bird pricing deadline is quickly approaching.
One of the biggest changes to this year’s award is the addition of our editorial advisory committee. This year, for the first time ever, nominees will be reviewed by an advisory committee, made up of some of the best minds in the housing industry. This committee will then advise HousingWire’s internal award review board of potential finalists before the winners are selected. Click here to see who is on this committee.
But now, members of that committee have come together to inform HW readers on some of the biggest issues in tech today. HousingWire interviewed Ballard Spahr Partner Richard Andreano, who talked about some of housing’s biggest issues – including the rise of AI and its replacement of humans.
Here is what Andreano says about AI, with more questions and answers to follow from other experts in the weeks leading up to the end of the Tech100 nomination period:
Although the industry has made great strides in developing systems to provide real time information for the processing of loans, improvements will further enhance compliance and the speed of the process.
It is difficult to see how a lender could originate a loan in a timely, compliant and cost-effective manner without the use of technology. Both the industry and consumers benefit from technology through quicker processing times, lower costs and enhanced compliance.
I expect better credit scoring and underwriting models to be developed, along with enhanced abilities to detect fraud and assess loan files during processing for compliance with policies, investor and agency requirements and regulatory requirements.
Artificial intelligence will likely play a bigger role in future, and it will be interesting to see how that develops and the extent to which consumers will accept dealing more with automation and less with humans. A driving force in replacing humans with technology is the ever-increasing regulatory burdens, and liability, under employment laws and other laws governing the employer-employee relationship.
The related costs will likely lead to increased efforts to use artificial intelligence as a means to reduce the number of employees and the related costs and liability. And as younger generations have grown up with technology they likely will be more receptive to the further integration of technology into the mortgage and real estate transaction process.
But there is a countervailing factor. Many younger adults had, and may even still have, helicopter parents who have helped guide them through everyday trials and tribulations. Such individuals may still want a trusted advisor to guide them through the home purchase process, and a robot may not be viewed as such an advisor.
Here’s everything you need to know about HW’s Tech100 Award, and click here to nominate your company. While the nomination period is open until January 25, 2019, the early bird special pricing ends December 31, 2018.