UWM will use AI to tap into refi pools
Based in Michigan United Wholesale Mortgage (UWM) has launched proprietary technology that will use artificial intelligence (AI) to send pre-validated refinance options.
The system, called “KEEP,” will identify borrowers who can save on their monthly mortgage payments and automatically pass those savings on to them via an email with a link to a refi application, UWM announced Wednesday.
As the nation’s first mortgage lender to use AI in identifying refi customers, the KEEP system continuously monitors multiple checkpoints, data and previous UWM loan information and looks at factors such as interest rate and appraised value to determine if a borrower is in qualifies for impactful loans. savings on their monthly mortgage payment,” the company said HousingWire in an email response.
UWM has not said how many basis points (bps) a borrower will save if its KEEP system sends an automated email for a refinance opportunity.
When borrowers have specific questions about rates or loan terms, a mortgage broker is put in touch with the customer and guides them through the options.
“This creates a simple refinancing process for both the broker and the borrower and frees the broker to refocus on other aspects of their business,” a UWM spokesperson said.
“The refinancing boom is here and we know there are millions of borrowers who will benefit from a refinance now,” Mat Ishbia, president and CEO of UWM, said in a statement.
“KEEP’s patented technology will create the easiest refinancing process ever – creating opportunities for the broker and significant savings for the borrower. It gives brokers the competitive advantage they need to succeed in this market and further reinforces why the wholesale channel is the best place for consumers to get a mortgage and lenders to work.”
While AI is poised to expand its influence in the mortgage and real estate industries, policymakers and regulators have warned that a lack of regulatory oversight could conflict with existing laws on civil rights, fair competition, consumer protection and equal opportunity.
The Consumer Financial Protection Bureau (CFPB) has reaffirmed its focus on monitoring the market for consumer financial products and services to identify risks and ensure that the rights of consumers using AI are not violated under federal law.
In a recent one remark to the US Department of the TreasuryAccording to the CFPB, companies must comply with consumer financial protection laws when adopting emerging technologies, including those marketed as AI.
“If companies fail to use a new technology in a legal manner, they should not use the technology,” the agency said.
In September 2023, the CFPB announced a set of regulatory requirements that lenders must adhere to when using AI to make decisions about the creditworthiness of borrowers. Creditors often feed complex algorithms with large data sets, including data that can be collected from consumer surveillance, the agency noted.
“As a result, a consumer may be denied credit for reasons that he may not consider particularly relevant to his finances,” the CFPB said. “Creditors must be able to specifically explain their reasons for the denial. There is no special exception for artificial intelligence.”
UWM did not respond to questions from HousingWire about the risks of using AI to identify potential refi customers.
