Evangelizing for AI continued from page 24 possibilities. Just like shopping for a size six Calvin Klein special-event dress in black, schools can find specific examples, such as murals created for gyms or playgrounds, in specific color schemes, perhaps based on the school colors. “The mural company knew their portfolio page was a problem, but they didn’t know there was a solution,” Torres says. For reverse mortgage operations, the return on investment materializes when potential customers and their loan applications are converted more quickly. When lenders get their money faster, they can invest in marketing to find more clients, Torres says. Small-business owners can adopt AI for as little as $99 a month. AI also can yield data that sharpens marketing, condensing the work of focus groups that traditionally find what’s on the minds of customers. For instance, AI analysis might discover an underlying theme in the varied questions that website visitors pose, suggesting targeted campaigns to reach the universe of people with that same mindset. Next Steps Do you remember renting a movie from Blockbuster lately? Or snapping a photo with your Kodak camera? The commercial graveyard is full of the bones of companies that didn’t adapt to change, Torres says. In reverse mortgages, companies have been deft at seeing the big picture encompassing AI, but Torres believes individual loan officers have been hesitant and uncertain about whether their customers will accept AI. It’s time for loan officers to think in a future-forward fashion. The proprietary products that resonate with Gen Xers are already available, and customers will expect to use them. “Technology is going to have to be more than just a paper form converted to digital or a web doc that you e-sign. Communication is about engagement,” Torres says. Today’s entry-level AI for reverse mortgages represents “the tip of the iceberg,” he adds. Next up are underwriting, processing and origination, “which is already happening on the forward side.” AI brings a “super underwriter” to the process, one that never misses a step and acutely analyzes an application’s prospects. “The future of lending is going to be utilizing AI a lot more,” Torres says. “It’s going to understand and make decisions better than humans. We’re not saying it will eliminate humans. Quite the opposite. By empowering employees with AI, they will be more effective and efficient at doing their jobs.” But from an underwriting standpoint, he continues, “the AI will look at an application and appraisal. It will scout everything and say the likelihood of that applicant getting a loan and being sold to this investor is ‘X’ percent. At that point, the underwriter as a human can come in and verify, and it’s done.” In AI, “every day brings something new.” “AI will be able to take a full application and give an approval on the spot,” he says. “It knows all the historical data and the last 10,000 loans based on this criterion, so it knows the loan will be approved. The future of not only reverse mortgages but mortgages, in general, is going to be the implementation of AI throughout the entire process.” Torres’ key message to reverse mortgage professionals is, “Heads out of the sand.” Acknowledge the arrival of AI and embrace it, or risk fading into irrelevance. The industry won’t go under, and individual loan officers must stay nimble as processes that once took months are condensed into weeks or days. “I want the industry not to be seen as a technology relic,” he says. “I’m trying to do my part. If we as an industry, as a collective, embrace AI and the change it brings, and we wear it as a proud badge, we’re sending a message that we have relevance in the 21st century. That’s going to change the perception of the industry. If we look at AI as a tool to educate our borrowers, it’s going to increase the demand and acceptance of reverse mortgages.” Torres thinks about his parents and all the aging parents of the future who, with help from AI, will truly understand how a reverse mortgage can help establish their financial security. “To me, that is the driving force,” he says. “That’s where my drive comes in when it comes to reverse mortgages. I’ll take the challenge.” M. Diane McCormick is a writer and editor based in York, PA 26 REVERSE MORTGAGE / MARCH-APRIL 2024
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