How A.I. May Play into Default Servicing in the Near Future | Topouzis & Associates How A.I. May Play into Default Servicing in the Near Future | Topouzis & Associates


July 09, 2019

How A.I. May Play into Default Servicing in the Near Future

How A.I. May Play into Default Servicing in the Near Future

We live in an era at the dawn of an Artificial Intelligence (A.I.) evolution. While A.I. can actually refer to a number of different sorts of computing elements, the one most relevant—and prevalent in headlines and business—is what is known as “Machine Learning” (M.L.), which is what occurs when a computer is given access to large data sets, and is capable of “learning” from that data—determining new ways to process, integrate, and even build new forms of knowledge—resulting in the solving of business problems more quickly and, potentially, more reliably than humans might be capable of. So says a recent article by DSNews.

Of course, key to this process of M.I.—especially at this relatively early stage of what is being referred to in some circles as the “Fourth Industrial Revolution”—is ensuring that the data sets and algorithms used as starting points are stable and worthy of relying upon.

The concept of A.I. goes back to the 1950s, when computers were in their earliest phase of development and science fiction authors (think: Isaac Asimov) were writing influential stories about robots and “positronic brains.” But computing was nowhere near powerful enough at that time—nor for the ensuing almost half-century—to make any progress on the project. But since the tech boom of the 1990s, with the strides in computing power it ushered in, the M.L. project has been back on the playing field ever since, and we are seeing it come into its own right before our eyes.

This has some huge consequences—particularly, for our interests, in the realm of default servicing in the real estate industry. It is difficult for experts to predict just precisely what changes A.I. may bring. But they do have some predictions, such as: speeding up and making more reliable risk analyses; assessing loan performance; ensuring the quality of loan products; predicting the value of assets; and automating the underwriting process. One thing is for certain. As these A.I. systems become more prevalent, it will not be long before those who have not kept up in using them (generally, at this stage, by partnering with organizations that can run data for us) are left behind.

Meanwhile, we here at Topouzis & Associates, P.C. offer services that ensure a property’s title gets conveyed clear of defects, and offer Owner’s Policies of title insurance, just in case. Contact us if you want your property purchase in Cranston, Rhode Island; Springfield, Massachusetts; Miami, Florida—or any other town in any of those three states—to go through without a hitch, both before and after closing.