Expert systems for mortgages

An expert system for mortgages is a computer program that contains the knowledge and analytical skills of human authorities , related to mortgage banking. Loan departments are interested in expert systems for mortgagesbecause of the cost of labor which makes the handling and acceptance of relatively small loans less profitable. They also see the possibility of a mortgage loan for mortgages and mortgage loans.

Since most interest rates for mortgages are controlled by the government , intense competition sees to it that a great deal in terms of business depends on the quality of service offered to clients. Expert systems for mortgages considering the key factors which enter the profitability equation. For instance, “share and parcel of the quality of a mortgage loans portfolio to the bank is the time elapses qui entre les first contact with the customer and the bank’s Offering of a loan. Another key ingredient is the fact that DP approaches. The expert system corrects this failure “. [1]

The expert system also capitalizes on regulatory possibilities. In France , the government subsidizes one type of loan which is available only on low-cost properties (the HLM ) and to lower income families. Known as “freights Conventionnes”, these carry a rate of interest lower than the rate on the ordinary property loan from a bank. The problem is that,

  • The home which is to be purchased, and
  • The financial circumstances of the borrower.

To ensure that all conditions have been met, every application has to be first processed at the branch level and then sent to a central office for checking, before going back to the branch, often with requests for more information from the applicant. This leads to frustrating delays. Expert system for mortgages takes care of these by providing branch employees with tools permitting them to process an application correctly, even if a bank employee does not have an exact knowledge of the screening procedure.

Goals and Objectives

The expert system neither refuses nor grants loans, but it:

  • If they have been satisfied, and if they have been satisfied,
  • Calculate the required term of repayment, according to the borrower’s
  • And the security to be obtained from him. [1]

The purpose of this section is to provide a framework for the implementation of the program.

The expert system provides the branch with a fair amount of assistance. In many cases the client had to choose between different types of loans, and it was planned that they should be able to advise clients on the type of loan which best matched their needs. This, too, has been done to the bank employees’ training.

The main tasks of expert system for mortgages focused on:

  • The speed of moving a loan through red tape, which management considered to be a very important factor;
  • The reduction of the errors made in the filling form;
  • The shortening of the turnaround time, which was too long with classical. [2]

Simple system of application for mortgage purposes. After a prototype is made, the construct should be presented to expert loan officers who will work together with the knowledge engineer (s) will refine the first model. But if there is no real-life solutions afterwards.

Whether simple or sophisticated, an expert system for mortgages should be provided with explanation facilities that show how it reaches its decisions and hence its advice. The confidence of the loan officer in the AI ​​construct will be increased when this is done in a convincing manner.

Application of expert systems for mortgages

Expert for mortgage loans. For example, Federal National Mortgage Association ( FNMA ), commonly known as Fannie Mae, use the Mavent Expert System . The Mavent Compliance Console (MC2), the front-end interface to the Mavent Expert System , and Fannie Mae review loans for compliance with its policies on the Truth in Lending Act ( TILA ), federal and state high-cost lending laws Points-and-fees test as outlined in the Fannie Mae Selling and Servicing Guide . Citation needed ]

Expert systems for mortgages can be used not only in mortgage banking, but also in law. There are a number of mortgage loans and mortgage loans. “The system identifies the legal requirements for closing the loans by considering the numerous individual features of each particular loan. Successful development and implementation of the system resulted in the realization of the anticipated benefits, and a few others as well “. [3]

See also

  • Artificial Intelligence
  • Business Intelligence
  • Mortgage loan
  • Logico-linguistic modeling (a method that has been used for building expert systems for mortgages)

The use of expert systems in law is illustrated by the QuickForm Contracts system. It uses a rule-based methodology to automate the drafting of approximately 60 types of agreements for technology and general business transactions. Questionnaire conceptual questions. The system then uses the data to reciprocate to interchangeable clauses to create a near-custom agreement. The system cuts the time to draft a first-cut document from several days to about 5 minutes.


  1. ^ Jump up to:a b Steinmann, Heinrich; Chorafas, Dimitris N. (1990). Expert in banking: a guide for senior managers . New York: New York University Press. pp. 222-225. ISBN  0-8147-1449-8 .
  2. Jump up^ Mishler, Lon; Cole, Robert E. (1995). Consumer and business credit management . Homewood, Ill: Irwin. p. 115. ISBN  0-256-13948-2 .
  3. Jump up^ Clancy, Paul, Gerald Hoenig, and Arnold Schmitt. 1989. An Expert System for Legal Consultation. InProceedings of the Second Annual Conference on Innovative Applications of Artificial Intelligence, 125 – 135. Menlo Park, Calif .: AAAI Press.

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