Use of artificial intelligence seems to be concentrated at nonbanks…

Artificial intelligence and machine learning technology are currently being used by 26 percent of lenders surveyed by Fannie Mae. The government-sponsored enterprise also found that the share of lenders using such technology could hit 60 percent within two years.

Stephanie Miller of Fannie Mae said the GSEs are working with SIFMA on the transition to the single security.

Deephaven Mortgage’s recent adoption of an automated system to pre-qualify expanded-credit borrowers has prompted some speculation about whether fully automated underwriting systems could be used for originations of non-qualified mortgages. A number of expanded-credit lenders at the ABS East conference suggested that some automated underwriting is possible, but some aspects of the non-QM underwriting process will likely need human intervention. The conference was ...

The CFPB’s recent efforts to create a regulatory sandbox for financial technology (fintech) companies would benefit the mortgage industry, said a former CFPB attorney. Ever since the agency hired Paul Watkins, a lawyer who helped establish the nation’s first regulatory sandbox for fintech companies, to lead its Office of Innovation in July, fintech regulation has become an area of focus at the bureau. The CFPB in August joined a global fintech regulatory initiative ...

Two new mortgage underwriting solutions designed to help lenders streamline their current mortgage workflows and reduce cost, as well as enable them to assist non-prime borrowers to obtain home loans, have hit the market. CoreLogic’s AutomatIQ Borrower streamlines underwriting by digitizing, standardizing and automating borrower analysis and verification. The tool bridges the gap between point-of-sale and underwriting to create a smoothly running mortgage origination process ...

Lenders looking for efficiencies should adopt artificial intelligence, machine learning and blockchain, according to various technology vendors. They claim that the technology can be implemented without exceptionally high costs but caution that early adopters face some risks. AI is generally defined as a collection of machine-learning algorithms assembled for certain tasks. Blockchain is distributed ledger technology. The tech was an area of focus at the ABS East conference ...

The FHA has proposed a similar user fee but has been denied repeatedly by Congress…

Recently, Inside Nonconforming Markets published its second quarter ranking of expanded-credit lenders, but Deephaven did not appear.

Meanwhile, Hindman doesn’t see Amazon or Google buying an existing mortgage franchise...