AI in Blockchain for the Mortgage Industry with Devin Daly, TRUE CRO- FMSIG Mortgage Subgroup Update
TLDRThe transcript discusses the integration of AI and blockchain technologies in the mortgage industry, highlighting the potential for increased efficiency and reduced costs. The conversation features Devin Daly from True, who explains how their AI-driven platform improves document classification and data extraction for mortgage processing. The discussion also touches on the challenges of fully automating the mortgage origination process and the impact of regulations and industry inertia on innovation. The meeting concludes with a preview of a future presentation on blockchain in structured finance.
Takeaways
- 🤝 The Hyperledger Foundation and the financial markets special interest group sponsored the June 2023 presentation, highlighting their ongoing support for the community.
- 📋 The meeting emphasized the importance of abiding by the antitrust policy and code of conduct, which includes avoiding discussions of specific pricing, products, and projects, and treating each other with respect.
- 📈 James Hendrick provided an overview of blockchain and distributed ledger technology, discussing how blockchain and smart contracts can improve loan management through speed, security, and cost efficiency.
- 🏦 JPMorgan Chase is reportedly developing a Chat GPT-like software, Intex GBT, which aims to use artificial intelligence for analyzing and selecting securities based on customer needs.
- 💡 Black Knight has been integrating AI into various aspects of the mortgage industry, such as point of sale, correspondent lending, and lead generation, to improve customer experience and efficiency.
- 🌐 Devin Daly from True discussed the company's use of AI and blockchain in manufacturing automation quality data, emphasizing the importance of accurate data for informed decision-making in lending.
- 🔍 True's AI-driven solutions focus on document classification, data extraction, and continuous quality control, aiming to reduce manual intervention and improve the lending process.
- 📊 The discussion highlighted the potential of AI and blockchain to transform the mortgage industry by providing valuable insights, enhancing risk assessment, and streamlining operations.
- 🚀 Devin Daly shared True's roadmap for upcoming solutions, including an income analysis engine, collateral analysis, asset analysis, and fraud detection tools.
- 🔗 The meeting underscored the interconnectedness of AI and blockchain, with blockchain providing a foundation for common understanding and data integrity, while AI enables efficient data processing and decision-making.
- 📅 The next Hyperledger meeting in July will feature a presentation from In Kane, focusing on their blockchain platform that unites various financial parties on a shared data platform using AI and blockchain for structured finance.
Q & A
What is the main focus of the Hyperledger presentation in June 2023?
-The main focus of the Hyperledger presentation is to discuss the ongoing support from the financial markets and the Hyperledger foundation, as well as to cover topics such as blockchain in the mortgage industry, AI and blockchain use cases, and education on these technologies.
What is the significance of the house cleaning activity at the beginning of the meeting?
-The house cleaning activity is significant as it sets the expectations for the meeting, reminding participants about the antitrust policy and code of conduct, emphasizing respect, no discrimination, and constructive communication within the Hyperledger community.
How does the Hyperledger community support openness, equity, and inclusion?
-The Hyperledger community supports openness, equity, and inclusion by encouraging new participants, fostering a respectful and inclusive environment, and adhering to a code of conduct that promotes these values during all interactions within the community.
What is the role of AI in the blockchain and mortgage industry according to Devin Daly from True?
-According to Devin Daly, AI plays a crucial role in automating and improving the quality of data in the mortgage industry. It helps in document classification, data extraction, and decision-making processes, thereby enhancing efficiency and reducing the need for manual intervention.
What are the key challenges in implementing AI and blockchain technologies in the mortgage industry?
-The key challenges include the need for organizational change, process adaptation, ensuring data quality and accuracy, and overcoming social inertia within the industry. There is also a need to address concerns about the security and privacy of data when implementing these new technologies.
How does True's AI-driven solution aim to improve the mortgage origination process?
-True's AI-driven solution aims to improve the mortgage origination process by providing high accuracy in document classification and data extraction. It also focuses on creating an auditable trail using blockchain technology, which can expedite the process, reduce costs, and improve the quality of loans.
What is the concept of 'provable correctness' in True's AI technology?
-The concept of 'provable correctness' refers to the ability of True's AI technology to prove its accuracy in performing tasks compared to humans, and its capability to improve its performance over time with machine learning, ensuring that it provides more accurate results as it learns from human inputs.
How does the blockchain technology complement AI in True's approach?
-Blockchain technology complements AI in True's approach by providing a secure and transparent way to record and verify the data and processes used in the mortgage industry. It creates a tamper-proof record that can be used for audit purposes, ensuring the integrity of the data and the decisions made using AI.
What are the future solutions that True is planning to launch?
-True is planning to launch solutions such as an income analysis engine, collateral analysis, asset analysis, fraud detection, and a compliance suite for quality automation. These solutions aim to further streamline and enhance the mortgage process using AI and blockchain technologies.
How does the mortgage industry's risk-averse nature impact the adoption of new technologies?
-The risk-averse nature of the mortgage industry means that there is a strong preference for proven, reliable processes and technologies. This can slow the adoption of new technologies, as the industry tends to wait until there is a clear benefit and a push from regulatory bodies or market leaders before making significant changes.
What is the role of blockchain in simplifying the mortgage closing process?
-Blockchain can play a crucial role in simplifying the mortgage closing process by creating a secure, transparent, and immutable record of all transactions and data. This can help reduce the time and costs associated with title searches, appraisals, and other due diligence processes, leading to faster and more efficient closings.
Outlines
🤝 Opening Remarks and Acknowledgements
The speaker begins by thanking the financial markets special interest group and the Hyperledger Foundation for their support. They highlight the importance of the agenda for the day and remind participants of the meeting's reporting and the need to adhere to the antitrust policy and code of conduct. The speaker also welcomes new participants and encourages interaction through the chat.
📚 Community Information and Blockchain Training
The speaker discusses community information, including articles that provide an overview of blockchain technology and smart contracts. They mention JPMorgan Chase's development of a chat GPT-like software and its potential impact on the financial industry. The speaker also highlights the applications of AI in the mortgage industry and the importance of data analytics in improving loan management.
🤖 Introducing Devin Daly: AI and Blockchain in Lending
Devin Daly, the Chief Revenue Officer at True, discusses the intersection of artificial intelligence and blockchain in the lending industry. He emphasizes the foundational role of data and the importance of manufacturing quality data. Daly shares insights from his experience in the mortgage industry and introduces True's solutions for improving data quality and efficiency in lending processes.
📈 Post-Closing QC and Origination Process Efficiency
Daly continues by discussing the application of AI in post-closing QC and the origination process. He explains how True's technology can help catch defects early in the process, reducing costs and improving efficiency. Daly also talks about the concept of 'shifting left' to address issues at the point of entry rather than in post-closing QC.
🚀 True's AI Solutions and Future Plans
Daly outlines True's AI solutions, including an income analysis engine and a fraud detection solution. He discusses the company's approach to machine learning and the benefits of their technology in terms of accuracy and efficiency. Daly also shares future plans for True, including launching new solutions and improving existing ones.
🔗 Blockchain and AI Synergy in Mortgage
The discussion turns to how blockchain can enhance AI's role in the mortgage industry. The speaker explains how blockchain can create an auditable trail, ensuring the integrity of data and decisions made throughout the lending process. The potential for blockchain to reduce costs and speed up cash flow is also highlighted.
🏠 The Future of Mortgage Processing
The conversation concludes with a discussion on the future of mortgage processing. The participants contemplate the possibility of significantly reducing the time it takes to process and close a mortgage, considering the advancements in AI and blockchain technology. They acknowledge the challenges posed by the current system and regulatory environment but express optimism for future improvements.
📅 Upcoming Meeting Announcement
The speaker announces details of the upcoming July meeting, which will feature a presentation from Sanjay Kumar Nishant, the Chief Operating Officer of In Kane. The presentation will focus on In Kane's blockchain platform that aims to bring various parties in the structured finance sector onto a shared data platform, leveraging AI and blockchain for seamless data flow and transparency.
Mindmap
Keywords
💡Hyperledger
💡Blockchain
💡Artificial Intelligence (AI)
💡OCR (Optical Character Recognition)
💡Anti-Trust Policy
💡Code of Conduct
💡Data Fabrics
💡Provable Correctness
💡Post-Closing QC
💡Income Analysis Engine
Highlights
The presentation is about the integration of AI and blockchain in the mortgage industry, emphasizing the importance of data quality and the potential for increased efficiency and transparency.
The Hyperledger Foundation supports the meeting, highlighting the collaborative nature of the technology community in advancing blockchain solutions.
The agenda includes an update on blockchain in the mortgage industry and a discussion on the use of AI and blockchain by True, a company focused on data quality and automation in lending.
The presenter emphasizes the importance of adhering to the antitrust policy and code of conduct, underlining the professional and respectful environment fostered by the Hyperledger community.
The discussion touches on the role of AI in transforming the customer experience and improving operational efficiency within the mortgage industry.
JPMorgan Chase's development of a chat GPT-like software, Intex, is mentioned as an example of how financial institutions are leveraging AI for internal use and potentially direct customer interaction.
Black Knight's application of AI in the mortgage industry is highlighted, showcasing the technology's ability to enhance various aspects of loan management and risk assessment.
An MBA Education event is referenced, where panelists discussed the challenges and opportunities of integrating AI, blockchain, and other new technologies in the current business environment.
The presenter from True introduces Devin Daly, the CRO, who will discuss the company's approach to using AI and blockchain for data automation and quality enhancement in lending.
Devin Daly emphasizes the foundational role of data in leveraging AI and blockchain, and the importance of starting with high-quality data for effective automation and decision-making.
True's approach to manufacturing automation quality data is discussed, including the use of machine learning for document classification and data extraction.
The concept of 'provable correctness' in AI is introduced, which involves proving that AI solutions are more accurate than humans and can improve over time.
Devin Daly outlines True's strategy of starting with post-closing QC to add intelligence and validate data, then shifting left to the origination process to catch issues at the point of entry.
The potential for AI to serve as a 'prompt engineer' in the financial industry is discussed, where domain experts use their knowledge to guide AI for better outcomes.
True's technology is described as being mortgage-specific and aiming to be BPO-free, with a focus on high accuracy and learning from human-in-the-loop interactions.
The discussion concludes with an overview of True's upcoming solutions, including an income analysis engine and a fraud detection solution leveraging font detection expertise.
The potential for blockchain to create an auditable and certifiable process for mortgage transactions is explored, with the aim of reducing costs and speeding up cash flow.
The meeting wraps up with a mention of the next session, which will feature a company working on a blockchain platform for structured finance, highlighting the ongoing exploration of AI and blockchain in the industry.
