UWM will use AI to tap into refi pools 

Michigan-based United Wholesale Mortgage (UWM) has launched proprietary technology that will use artificial intelligence (AI) to send pre-validated refinance opportunities.

Dubbed “KEEP,” the system identifies borrowers who can save on their monthly mortgage payments and will automatically communicate these savings to them through an email that provides a link to a refi application, UWM announced Wednesday.

As the country’s first wholesale mortgage lender to use AI in identifying refi customers, the KEEP system is “constantly monitoring multiple checkpoints, data and previous UWM loan information and looks at factors such as rate and appraised value to determine if a borrower is eligible for impactful savings on their monthly mortgage payment,” the company told HousingWire in an emailed response.

UWM didn’t say how many basis points (bps) a borrower will save when its KEEP system sends out an automated email for a refi opportunity.

When borrowers have specific questions regarding rates or loan terms, that’s when a mortgage broker is connected to the client and walks them through options.

“This creates an easy refi process for both the broker and the borrower and gives the broker time back to focus on other aspects of their business,” a UWM spokesperson said.

“The refi boom is here, and we know there are millions of borrowers who will benefit from a refinance right now,” Mat Ishbia, president and CEO at UWM, said in a statement.

“KEEP’s proprietary technology will create the easiest refi process ever — providing opportunity to the broker and significant savings to the borrower. It gives brokers the competitive edge they need to succeed in this market and further solidifies why the wholesale channel is the best place for consumers to get a mortgage and loan originators to work.”

While AI is poised to expand its influence in the mortgage and real estate industries, policymakers and regulators have warned that a lack of regulatory oversight may run afoul of existing laws on civil rights, fair competition, consumer protection and equal opportunity.

The Consumer Financial Protection Bureau (CFPB) has affirmed its focus on monitoring the market for consumer financial products and services to identify risks and ensure that consumers using AI do not have their rights violated under federal laws.

In a recent comment to the U.S. Department of Treasury, the CFPB said that firms must comply with consumer financial protection laws when adopting emerging technologies, including those marketed as AI. 

“If firms cannot manage using a new technology in a lawful way, then they should not use the technology,” the bureau stated.

In September 2023, the CFPB announced a series of legal requirements that lenders must adhere to when using AI to make decisions about the creditworthiness of borrowers. Creditors often feed complex algorithms with large datasets, including data that may be harvested from consumer surveillance, the bureau noted. 

“As a result, a consumer may be denied credit for reasons they may not consider particularly relevant to their finances,” according to the CFPB. “Creditors must be able to specifically explain their reasons for denial. There is no special exemption for artificial intelligence.”

UWM didn’t respond to questions asked by HousingWire about the risks of using AI to identify potential refi customers.