Washington, Sep 4 (AP) The journey to homeownership is laden with hurdles for many Hispanics, including language barriers with loan officers and unfamiliarity with non-traditional mortgage applicants.
Many mortgage experts are now turning to artificial intelligence as a solution to bridge this gap. They believe AI can assist loan officers in selecting the most suitable lender for a potential homeowner’s unique circumstances, clarifying the process, and addressing issues related to residency, visas, or income requirements.
This innovative approach using bilingual AI has the potential to significantly improve services for homebuyers in Hispanic and other underrepresented communities.
Its introduction coincides with federal housing agencies transitioning to English-only services, aligning with President Donald Trump's move to establish English as the official language of the United States.
His executive order in August described the change as a means to “reinforce shared national values, and create a more cohesive and efficient society.”
According to the Urban Institute, a Washington, DC-based nonprofit research organization, the number of limited-English households has tripled over the past four decades.
These households often face significant challenges navigating the mortgage process, which is crucial for building generational wealth.
The nonprofit Hispanic Organization of Mortgage Experts (HOME) has unveiled an AI platform based on ChatGPT, which enables loan officers and mortgage professionals to swiftly explore the requirements of over 150 lenders, eliminating the need for individual contacts.
Known as Wholesale Search, this system utilizes an internal database to offer customized choices for each buyer.
HOME also provides a training program called Home Certified, featuring self-paced classes on income and credit analysis, compliance rules, and intercultural communication.
Cubie Hernandez, HOME’s chief technology and learning officer, emphasized the initiative’s aim to bolster families’ confidence during the mortgage process while advancing industry modernization.
“Education is the gateway to opportunity,” he stated.
HOME founder Rogelio Goertzen mentioned that the platform is equipped to handle complex cases like borrowers without a Social Security number, limited credit history, or visa holders.
Loan officer Danny Velazquez from GFL Capital noted how the platform has revolutionized his workflow.
Previously, he needed to contact 70 lenders individually, awaiting responses and occasionally discovering they wouldn't accommodate the buyer's situation.
The AI tool consolidates requirements, streamlines the list, and accelerates the application process.
“I can make the process faster and secure the house for them,” Velazquez stated.
One of Velazquez's recent clients, Heriberto Blanco-Joya, 38, purchased his first home this year in Las Vegas.
Given that Spanish is Blanco-Joya's first language, he and his wife anticipated a complicated process.
Velazquez provided precise paperwork instructions, creditworthy evaluations, and swift responses to their queries.
“He gave me all the information I needed,” Blanco-Joya explained.
“The process was pleasant and simple.”
From their initial meeting to closing day took approximately six weeks.
However, the implementation of AI does present risks, as mortgage experts and platform creators acknowledged.
Accurate information regarding loans, immigration status, and credit requirements is crucial, and AI inaccuracies could have serious implications.
HOME’s CEO Goertzen noted efforts to minimize errors by ensuring AI retrieves data directly from lenders and loan officers.
The platform’s database is continuously updated with new loan products, and developers address user-reported issues.
“We constantly correct inaccuracies,” Goertzen said.
“AI is an excellent tool, but it doesn’t replace the professional human element, which is why we continually fine-tune it for accuracy.”
Mortgage broker Jay Rodriguez from Arbor Financial Group highlighted that understanding various investors' requirements can determine whether a family is approved or not.
He noted that HOME’s AI platform is particularly useful for training new loan officers and guiding teams in better community service.
In parallel, Better Home & Finance Holding Company, an AI-driven mortgage lender, has developed an AI platform named Tinman.
It aids loan officers in locating lenders for borrowers with unconventional income sources or documents, a scenario common among small business owners.
Additionally, they have created a voice-based assistant called Betsy, managing over 127,000 borrower interactions per month, with a Spanish-language version underway.
“Financial literacy can be challenging for Hispanic or underserved borrowers,” Pierce stated.
“Tools like Betsy provide a supportive and non-judgmental customer interaction experience.” (AP) SKS NPK NPK
(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)
