FNF
Family of Companies Senior Vice President, National Agency Division Chuck Cain
and Mortgage Connect Executive Vice President and Chief Information Officer
Gabe Minton were featured in October Research, LLC’s “RESPA: Ensuring Fintech
Partner Compliance” webinar, moderated by Dodd Frank Update’s sister
publication, RESPA News. The two field experts highlighted what you
should consider when entering into and maintaining financial technology (fintech)
partnerships.
Minton
kicked off the discussion by defining fintech. There are four general “pillars”
that make up the field: artificial intelligence (AI), blockchain, cloud
computer, and big data.
“The
synthesis of these four pillars is, in my opinion, creating an environment not
seen since the advent of the internet itself,” Minton said. “That’s how
prolific it is. In talking to Chuck and a lot of my other colleagues, we all
feel the same way, in that the world is busting wide open with new solutions,
new opportunities, but also new dangers in using those new solutions. You have
to be careful, and focus.”
After
outlining the limitation of generative AI models in the mortgage industry and
the improvements of optical character recognition and automated document
recognition, Minton turned it over to Cain to address the necessary legal
considerations when a title company or mortgage lender is partnering with
fintech solution providers.
Cain
noted how fintech is not really a new concept – society has been using credit
cards and payment systems for decades. But the level of technological advances
makes it feel like “a brave new world.”
“It’s
not only administering a technical system operating in your company; it’s like
managing another employee,” Cain said. “Because you have to keep an eye on it.
You have to manage them. AI systems can evolve. Now, we’re not talking about
how the computer taking over the spaceship like in ‘2001[: A Space Odyssey].’
But they can change and evolve and do things that you may not want them to do.”
Over
the hour, Cain and Minton also discuss:
·
Using fintech for RESPA compliance.
·
How AI can assist in preventing RESPA violations.
·
The importance of due diligence when evaluating fintech providers.
·
Red flags/green flags in contract language contemplating fintech
partnerships.
·
What to do when an issue occurs.
The
webinar is available
now for download.