The expert system for mortgages is a computer program that contains the knowledge and analytical skills of human authorities, related to mortgage banking. The credit department is interested in expert systems for mortgages because of the rising labor costs that make relatively small handling and receiving loans less profitable. They also see in the application of expert systems the possibility for handling a standard and efficient mortgage loan, and appreciate that for mortgage receipts there are hard and fast rules that do not always exist with other types of loans.
Since most interest rates on mortgages are controlled by the government, intense competition ensures that many things in terms of business depend on the quality of service offered to clients - who go around to get the best loan that suits their needs. Expert systems for mortgages consider the key factors that enter the profitability equation. For example, "part of the quality of the mortgage loan portfolio to the bank is the time elapsed between the first contact with the customer and the offer of the loan bank.Another key ingredient is the fact that home loans have significant features that are not always exploited through the classic DP approach. this ".
The expert system also capitalizes on possible regulation. In France, the government subsidizes one type of loan that is only available on low-cost properties (HLM) and for low-income families. Known as the "Frets Conventionnes", it carries a lower interest rate than the usual property loan rate of the bank. The difficulty is that their giving is subject to various rules, regarding both:
- the house to be purchased, and
- the financial condition of the borrower.
To ensure that all requirements are met, each application must be processed first at the branch level and then sent to headquarters for review, before returning to the branch, often with a request for further information from the applicant. This causes frustrating delays. Expert systems for mortgages take care of this by providing tools for branch employees that allow them to process applications properly, even if bank employees do not have proper knowledge of screening procedures.
Video Expert systems for mortgages
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Expert systems do not refuse or lend, but that is:
- specifies whether all conditions for granting specific types of loans to a particular client have been met, and
- calculates the payment period required, according to the borrower
- means and security is obtained from it.
The goal is to produce the correct application in 80 percent to 90 percent of all cases, and transfer the responsibility to grant or reject the loan to the branch office.
The expert system provides a branch with a significant amount of help just by generating the correct application for the loan. In many cases clients have to choose between different types of loans, and it is planned that the expert system should allow bank employees to advise clients on the types of loans that best suit their needs. This has also been done and thus contributes to the training of bank employees.
The main task of the expert system for mortgages focuses on:
- the speed with which to move the loan through a red ribbon, which management considers a very important factor;
- reduction of errors made in the filling form;
- shortening the rotation time, which is too long with the classic.
A simple expert system is the first phase of loan applications for mortgage purposes. Once the prototype is created, construction should be presented to the loan officer who, in collaboration with the knowledge engineer (s) will refine the first model. But if there is no simple and understandable first experiment, there will be no complex real-life solutions thereafter.
Whether simple or sophisticated, the expert system for a mortgage should be equipped with an explanation facility that shows how he or she reached his decision and hence his suggestion. Credit officers' confidence in AI construction will increase when this is done in a convincing manner.
Maps Expert systems for mortgages
Expert system implementation for mortgages
Expert system for mortgages find applications for mortgage loans. For example, the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae uses the Mavent Expert System. Through the Mavent Compliance Console (MC2), the front-end interface to Mavent Systems Expert, Fannie Mae reviews loans for compliance with its Truth in Lending Act (TILA) policy, federal and state high-cost loans law, and point- cost test as outlined in Fannie Mae Selling and Servicing Guide.
Expert systems for mortgages can be used not only in mortgage banking, but also in law. There are several expert systems developed to help lawyers and paralegals in the closing process for commercial real estate mortgage lending. "This system identifies the legal requirements for closing the loan by considering the individual features specific to each particular loan.It feels that the expert system can provide significant benefits to this process, which is very complex and involves a large amount of money.Our knowledge, expert system technology has never been applied to this domain Successful development and implementation of the system results in anticipated benefits realization, and some others as well. "
See also
- Artificial Intelligence
- Business Intelligence
- Mortgage loan
- Logico-linguistic modeling (the method that has been used to build expert systems for mortgages)
The use of expert systems in law is illustrated by the QuickForm Contract system. It uses rule-based methodologies to automate the preparation of about 60 types of agreements for technology and general business transactions. The user answers a series of conceptual questions of long sheet level. The system then uses the data recipes to select interchangeable clauses for making near-custom agreements. The system cuts the time to compile the first cut document from a few days to about 5 minutes.
References
External links
- Mortgage on Curlie (based on DMOZ)
- FHA Loans (Department of Housing and Urban Development)
- ABC Mortgages, Canadian Financial Consumer Agency
- ALEXSYS Pool Mortgage Allocation Expert System (Case Study of Ruling-Based Programs)
- Fannie Mae Single Family and Sales Guide.
Source of the article : Wikipedia
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