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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 34 December 2023 F E A T U R E S T O R Y way appraisers work and offering different career opportunities to a new generation of appraisers. While appraisers can still choose to go out into the field, it is now possible to complete appraisals by pri- marily working in an office or from home by accessing multiple online data sources along with property information collected or facilitated by other parties using tech- nology such as 3D scans and purpose-built mobile applications. This evolution presents intriguing new opportunities for appraisers to work in a variety of different ways, providing flexibility regarding work- ing hours and location. Appraisers can also spend less time booking and traveling to appointments, especially in rural areas, and more time doing what they are trained to do: analyze property data and form an expert opinion of value. Q: As artificial intelligence (AI) and machine learning (ML) continue to advance and evolve as everyday tools for the industry, will we ever be able to rely 100% on these tools, or will the human touch always be a necessary part of the process? Paul Hurst, Chief Innovation Officer, First American: While advances in AI and ML offer great promise for driving efficiency in real estate transactions, we believe the human touch will always be a necessary part of the origination process. Getting a mortgage and buying a home is not like ordering a taxi or grocer- ies. It's most likely the largest transaction a consumer or business will make in their lives, and while people want the process to be seamless, they also rely on mortgage and real estate professionals, as well as title professionals, to provide certainty and trust in the process. While there are many rote manual tasks in the transaction that can and should be automated, people are required to manage the myriad of edge cases that machines can't handle and, most importantly, help buyers navigate the emotional aspects of buying a home. People want to buy and live in their dream home. AI and ML will enhance the origination and transaction process, but people will remain central to helping buyers achieve their goals. Madigan: While AI and ML advancements have undoubtedly improved industry processes, relying solely on these tools is not realistic and presents new risks. The ability to connect with a person who empathizes, understands difficulties, and provides guidance is irreplaceable. It is also important to understand that decisions, influence, traceability, and auditability are essential components of any successful AI or ML implementation that meets industry and regulatory/oversight needs. While AI and ML can streamline processes and even help employees work through difficult cases, the need for a human touch in customer interactions, especially during financial hardships, will likely persist. The goal is not to eliminate human involvement but to leverage tech- nology to optimize the overall mortgage management process, ensuring that human connections are prioritized where they matter most. Obradovich: There will always be a place for AI and ML in the industry, but it's incredibly new and untested at this point. The housing and mortgage industry relies so heavily on humans, but I do see opportunities for these tools to make processes much more efficient. However, the housing and mortgage industries need humans to make certain decisions or per- form certain activities that are not easily transferred to this technology. Beyond that, historically, the industry has been very slow to adapt to these types of tools or technology in general. Smith: I think AI and technology can and will play an important role in improving the mortgage industry, whether that be through a better customer experience or improving processes and efficiencies in the back office. I do think there will always be customers who prefer that personal experience, and there will always be edge or more complex loans that cannot be entirely automated and need that personal touch. Williamson: While there will always be a need for some level of human "While AI and ML advancements have undoubtedly improved industry processes, relying solely on these tools is not realistic and presents new risks. The ability to connect with a person who empathizes, understands difficulties, and provides guidance is irreplaceable." —Sandra Madigan, EVP of Product Strategy–Servicing Technology, ICE Mortgage Technology