One question that often comes up is: why don’t the multiple types of businesses involved in the huge market for mortgages make use of AI data extraction techniques to speed up the process? After all, if there was ever a need for more efficiency that would benefit a huge number of people, then it’s here.
Strangely, Artificial Lawyer has not heard that much from conveyancing factories in the UK, or real estate lawyers elsewhere, or mortgage brokers, banks and real estate companies about focusing on mortgage docs specifically in terms of leveraging AI tools, (as opposed to Land Registry or commercial lease data)………until now.
AI company, Ayfie, which has a strong focus on detailed data extraction and is ramping up its work in the legal sector, has just announced a partnership with a US financial technology provider, Alpha Modus, to power contract analytics for the mortgage industry.
The integration will leverage Ayfie’s AI engine to identify ‘data points with high precision, creating seamless analysis and process automation’, they said. It will have multiple uses, including for price and risk analysis.
Is this a big deal? It could be. Ayfie claims to be able to offer clients a much more granular level of data analysis than other legal AI companies. In fact it is understood there have been occasions when Ayfie has been brought in to really get into the nooks and crannies of unstructured data that other big brand AI systems have struggled with.
Ayfie puts its ability to provide a super-granular analysis down to its computational linguistics approach – which you can read more about in this Artificial Lawyer feature here.
Mortgage documents can be, to put it technically, ‘a bit fiddly’, as they are filled with dates, financial data and other key numerical data points that is not in a normal text format, all mixed together with a lot of clauses and other legal language. In review terms you’re not necessary just looking to identify key clauses, as you might in an M&A due diligence review, you really want to extract very specific items of information as well.
So, when an AI company like this gets together with a fin tech company to provide extraction and workflow tech to the mortgage sector then it’s an interesting development.
Rob Wescott, Chief Strategy Officer at Ayfie, explained some more: ‘By strategically aligning with Alpha Modus, we’re launching an extremely sophisticated mortgage pricing and risk management software suite. Working closely with thought leaders in verticals like the mortgage market allows us to solve specific and costly problems in the industry. We’ll continue to innovate with Alpha Modus for data-driven process automation in the mortgage industry moving forward.’
William Alessi, CEO at Alpha Modus, added: ‘We will streamline the mortgage due diligence process by extracting key metadata compiled throughout the loan origination process. This will, in turn, provide actionable insights to a broad range of mortgage industry participants.’
And, if you’ve still not heard of Ayfie yet, they are an international company, headquartered in Oslo, Norway, with offices in New York, Fort Lauderdale, Washington, D.C., Munich, London and Stockholm. The short video below provides a useful introduction.