I am a long-time subscriber, and I'm grateful you have been writing about AI's impact on mortgage banking. My compliance officer bought your AI Policy Program. Our Director of Sales is considering getting your manual for AI in mortgage banking sales. So, I hope you will allow this long message from someone who has been in this business for forty years.
We use AI in various areas, including operations, compliance, marketing, underwriting, and disclosures. I'm a CEO and loan officer. My company is in 15 states. I use AI in my loan origination and also in my private life. In my opinion, AI seems like a glorified search engine. But I still have to double-check it because it's throwing errors, and there's no quality control to ensure reliability.
A friend of mine had to hire another compliance manager just to make sure that all AI output is strictly within federal and state guidelines. Instead of AI replacing compliance, he is adding to compliance to keep a watch on AI. And he tells me AI isn't saving him a dime. It is actually costing him more. It's tough enough to book loans in this economic climate; we don't need a new, unregulated technology to confuse us or our borrowers.
And I don't get all the buzz about AI replacing me. It won't replace me. I don't have any borrowers who want to talk to an AI bot. We had an AI agent for a while, and borrowers hung up or logged off. They only want humans, such as me. I go to AI the same way I go to any search engine. It seems more like a consolidator of information, mostly plagiarized, and puts it into a readable, friendly format. This thing just doesn't seem like a revolution that is going to put us all out of work.
A day of reckoning is coming, I promise you. Where's the regulation? Who's liable if AI makes a mistake? Who will reimburse me if I get sued because of an AI error? Why is there no quality control? Why are all these FinTech companies springing up all over the place with AI promotions?
Let's get real. I have no confidence that AI technology is a new type of economic revolution. Maybe it is for the billionaires who run it, since it seems to be a revolution in how fast they can become mega-billionaires.
Will there be a day of AI reckoning in mortgage banking?
COMPLIANCE SOLUTIONS
Policies and procedures for artificial intelligence relating to mortgage banking compliance administration, mortgage loan origination compliance, mortgage servicing compliance, and industry best practices — including, but not limited to, applicable federal and state banking and consumer lending laws.
Sales Manual provides 9 chapters covering the full AI-powered origination funnel in a 90-day implementation roadmap, with clear team roles for fair lending, FCRA, and advertising compliance guidance built into every chapter. Sample AI prompts, an ROI tracking framework, and a compliance glossary.
ANSWER
Your concerns are complex and worthy of a detailed response.
I'll answer in three parts and publish them here weekly, beginning with Part I today.
Part I
- The pattern lenders are experiencing
- A regulatory framework closing in fast
- Who actually stands behind the output?
Part II
- Capital Markets Are Starting to Ask the Same Question
- Public Is Rejecting the Infrastructure, Not Just the Valuations
- Data Center Opposition
Part III
- What is the scariest compliance problem for AI in mortgage banking?
- Why This Looks Like an Implosion, Not a Correction
- Future or Futuristic AI for Mortgage Banking
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Distributed after publication of all three articles.Orders distributed first come, first served.
