LoanLogics Chief Information Officer Terrell Cassada thinks it’s “very cool” how AI, machine learning, and process automation are being applied to point-of-sale systems and eClosing solutions. But he says the real value of these innovations lies elsewhere.
“If you think of the loan process as a duck, most lenders invest in technology for the top half that everyone sees,” Cassada says. “But it’s the back office that really needs help. Below the surface, where the duck is paddling like crazy, is where our industry’s record expense rates and record losses occur.”
He experienced this first hand himself with a refinance attempt at a large lender where the front-end borrower experience had the sex-appeal but the back end processes broke down entirely.
Cassada thinks we’re about two-to-five years away from seeing AI, machine learning and robotic automation transform back end systems, which will usher in an era of openness and “purified” data. AI is already replacing Optical Character Recognition technology, or OCR, which Cassada calls “just a data picker”, taking us from Capture 1.0 to Capture 2.0.
“Most mortgage technologies are capturing only a portion of data in the loan file, but it’s not enough -- plus it’s not being verified and validated during production, when it really matters," he added. "Real change will happen over the next five to seven years, with API based cloud-first applications. That’s when we’ll have an open exchange of data from discreet, protected functions and greater workflow efficiency through automation.”
LoanLogics was founded in 2005 to improve the transparency and accuracy of the mortgage process and improve the quality of loans. Its regtech capabilities help dozens of residential mortgage lenders, servicers, insurers and investors validate compliance, improve profitability and manage risk during the manufacture, sale and servicing of loan assets. LoanLogics has received multiple awards for its technology innovations, corporate culture, executive leadership and women executives. To learn more, visit www.loanlogics.com.