Cloud providers have become major players in mortgages



Cloud providers such as AWS, Google Cloud, and Microsoft Azure not only provide the flexibility to scale, but have also developed native AI and machine learning capabilities that can be customized to meet the needs of mortgage lenders.

Using artificial intelligence and machine learning to automate the mortgage lending process requires enormous computing power and storage. Thus, cloud providers such as Amazon Web Services, Google Cloud and Microsoft Azure are becoming larger players in mortgage lending and financial services in general – a trend exacerbated by the pandemic.

Contracting with a cloud provider instead of owning their own hardware gives companies more flexibility to scale. But cloud providers have also developed native AI and machine learning capabilities that can be customized to meet the needs of specific industries and businesses.

Black Knight and Amazon Web Services merge

The latest example of the growing role of cloud service providers is Black Knight’s new AI-powered mortgage solution, Underwriter Assist, powered by Amazon Web Services (AWS).

Underwriter Assist uses Amazon Textract and Black Knight mortgage algorithms to extract data from a bunch of documents such as W2 documents and payment receipts, eliminating many of the tedious “look and compare” tasks traditionally performed by human underwriters.

Integration with AIVA, Black Knight’s artificial intelligence solution, means Underwriter Assist can also analyze this data, applying lender-defined underwriting criteria to determine, for example, a borrower’s ability to pay a payment, and verifying that all documents required to substantiate each decision were provided.

Richard Galliano

As the name suggests, Underwriter Assist is not intended to replace human underwriters, but eliminates the need to perform line-by-line comparisons of tax returns and bank statements, track missing documents and signatures, and sort through disorganized data. Rich Galliano, President of Black Knight Origination Technologies, at Blog post

According to Galliano, underwriters – some of the highest paid employees of lending firms – are still needed to make the final decision on whether to approve a loan. They can review the results, correct analyzes that Underwriter Assist collects, and request additional documents and information as needed.

But Underwriter Assist is increasing production by giving employees “a much needed break from the tedious manual steps in the process, freeing them to focus on the most important parts of their work: complex analysis and decision making,” said Galliano.

Black Knight has partnered with AWS since 2018 and several other mortgage offerings are in the cloud, including Credit Specialist Digital, Acceleration of closing, as well as on the platform of correspondent lenders Seller Digital, which launched in January

Frank Fallon

“AWS’s broad portfolio of cloud services helps leading fintech providers like Black Knight innovate quickly to improve the customer experience,” said Frank Fallon, vice president of financial services at AWS. statement… “Black Knight is transforming the day-to-day life of lenders by leveraging advanced machine learning services such as Amazon Textract to improve productivity, improve operational efficiency and reduce costs.”

Google Cloud Mortgage Solution

This spring Google Cloud launched own specialized solution for the mortgage industry Lending DocAI. The company claims that by automating data entry, creation and customization of document processing workflows, lenders can reduce processing costs by up to 60 percent.

DocAI’s loan clients include Roostify, a provider of digital mortgage solutions for lenders, and Mr. Cooper, one of the nation’s largest mortgage service centers.

Another popular cloud provider is Microsoft Azure. Finastra, a global financial services and cloud solutions software provider, working with Azure to offer cloud deployment for all of its core products. Its cloud solutions currently include Fusion MortgagebotLOS

The best experience for home buyers

Sellers who help lenders automate the mortgage loan process say the benefits go beyond saving time and money. Automating tasks such as collecting and verifying documents also improves the experience of home buyers and real estate agents who represent them.

As the refinancing boom fades and competition among home buyers intensifies, this is an important consideration for lenders. BUT recent poll by Fannie Mae found that improving the lending process was a top priority for lenders, followed by hiring more loan officers and partnering with builders and real estate agents.

Source: Fannie Mae Mortgage Sentiment Survey

And it’s not just mortgage lenders that are leveraging the power of the cloud. In the title insurance industry, Doma uses cloud-based automation that uses a predictive algorithm to ensure “instant underwriting»Title insurance for mortgage refinancing as well as optimized remote and digital closure and escrow services for all types of mortgages.

Multi-cloud strategy

The pandemic has accelerated the move towards automating company processes and moving applications and data to the cloud. This is according to MIT Technology Review and VMware Reviewwhich helps companies use multiple cloud providers.

The study found that financial services companies are leading the way, with more than half of the companies in this category planning to accelerate infrastructure efficiency initiatives such as automation and multicloud strategies.

ZDNet Editor Larry Dignan writes that a multi-cloud approach — which allows applications to be hosted by any of the major cloud service providers — helps protect companies from vendor lock-in. But while enterprises are “deploying more multi-cloud systems, IT budgets are increasingly being spent on cloud giants,” such as Microsoft Azure and AWS, Dignan said.

Email Matt Carter


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