There are 2 different types of Artificial Intelligence. They are called 'KNOWLEDGE BASED' and 'RULES BASED' Artificial Intelligence. A common abbreviation for Artificial Intelligence are the letters 'AI'. Here is a brief description of what each type of AI is and why they are such an incredible tool for you to have access to.

KNOWLEDGE BASED AI: Is the stuff of major national and world wide computer systems such as those operated by the National Aeronautics and Space Administration (NASA), FNMA etc. knowledge based AI starts with a set of rules and a predictable way of handling all the circumstances that are presented to the program. However, it is also programmed to modify it's own programming based on the feedback it gets from its own programmed senses. Those senses can be mechanical such as those used in robots, light sensitive such as those used in SIGHT or data sensitive such as those used in the worlds largest databases. Insurance companies would be a good example of an industry that relies upon knowledge based AI to analyze the huge volumes of data and come up with statistacal profiles. As it pertains to the MORTGAGE INDUSTRY, Knowledge Based AI can be (and is) used to underwrite borrowers based on that borrowers profile. As we speak there are now 'AI' underwriters (computers) that approve or turn down a borrower. At this time, turned down borrowers are required to be re-looked at by a human where approved borrowers are not.

RULES BASED AI: Is a much simpler matter. Simply put, Rules Based AI requires that programmers input the RULES for as many different situations as can be thought of for a given application. Utopia Originator is a RULES BASED AI program. Here is an example of some of the things that happen during the creation of a Good Faith Estimate in UTOPIA ORIGINATOR using the process of AI. You answer question for: Term & Amortized Months: Program senses if they are different. If they are, AI will consider it a 'Balloon Mortgage' for APR calculations. It will also add a 'Balloon Endorsement' to your title insurance policy if you are in a title policy state. Purchase or Refi: If you answer Purchase, a prompt for 'Estimated Closing Date, Contract Sale Price, Down Payment, Percent Down and % R.E.Agent Commission (optional)', ' is placed on your screen to answer. If you answered Refinance, prompts for 'Estimated Fuding Date, Estimated Value, First Mortgage Amount, Other Liens being Refinanced, Other Mortgages Remaining in Place' are placed on your screen.