The Key to Unlocking a Trillion-Dollar Opportunity in the Mortgage Market

The U.S. residential mortgage market is colossal, with a net worth of approximately 3 trillion dollars. Within this behemoth industry, a staggering reality exists — an estimated one-third of all mortgages contain defects, such as missing notes, incomplete loan applications, and other issues. This translates into an illiquid sum of around 1 trillion dollars.

Enter the 3 Dimensional Inference (3DI) technology from RedFile AI — a technology designed to address this very issue at scale and at an astonishingly low cost.?

"I had a discussion with a CRO at a Top 10 mortgage servicer a few years ago. He shared with me that he thought about 1/3 of all mortgages had defects. These defects are things like, a missing or incomplete Note, missing Loan Application, etc. He said that this means that 1 Trillion dollars of the US Mortgage Market is illiquid.

I designed 3DI for this purpose. The CRO said that if someone like me could come up with a low cost way to check for a dozen or more defects, fully automatically with no human intervention, then companies / banks could identify and attempt to 'fix' the defects thus restoring liquidity to the portfolio." - John Martin

Unparalleled Speed in Loan Processing

In an industry where time is tantamount to money, the speed of 3DI technology is a game changer. Imagine processing 100,000 loans in just three months — or even faster. This is the reality with 3DI. By efficiently allocating computing workers, the processing rate can be scaled to meet urgent timelines without compromising on accuracy or quality. In a sector where delays can result in significant financial losses or missed market opportunities, the swift and scalable capabilities of 3DI technology represent an invaluable asset.

Mortgage banks and credit unions employing this technology are poised to not only outpace competitors but also respond proactively to fluctuating market conditions. In this way, 3DI serves as a potent engine for agility and responsiveness in the ever-evolving landscape of the mortgage industry.

Efficiency at Scale

Traditional manual processes or outsourcing solutions that scan through loan portfolios for defects are slow, expensive, and fraught with potential for human error and security risks. 3DI technology is designed to be the antidote to these problems. It is capable of sweeping through servicing portfolios that range from thousands to millions of mortgage files. The cost? Less than $15 per loan. In an industry where portfolios can reach astronomical sizes, this level of cost-effectiveness is revolutionary.

Restoring Liquidity, One File at a Time

By identifying and offering the opportunity to correct defects in mortgage files, 3DI technology enables banks and credit unions to restore liquidity to a substantial part of their portfolio. It is not just about saving money; it is about unlocking capital that is currently frozen due to these defects.?

Beyond Defect Detection: A Data Goldmine

3DI doesn’t stop at defect detection. By processing mortgage files, this technology also generates a wealth of actionable data analytics, with hundreds to thousands of data points. This enables institutions to harness this data for better risk assessment, compliance monitoring, customer experience enhancement, and strategic market positioning.?

The Only Viable Large-Scale Solution

For mortgage servicers who are managing extensive portfolios, options for comprehensive and accurate file review are limited. Outsourcing can introduce numerous complications, from data security concerns to quality control issues. 3DI stands alone as a solution that is both scalable and secure, a tool that can handle massive volumes of data with exceptional accuracy and reliability.

Conclusion

In the vast and complex landscape of the U.S. mortgage industry, the problem of loan file defects represents a trillion-dollar challenge. 3DI technology from RedFile AI has emerged as the key to unlocking this challenge. With its ability to process immense volumes of loan files at a fraction of the cost of traditional methods, and its capacity to transform these files into a source of actionable intelligence, 3DI is not just a solution — it's a requirement.