"Having a large language model pass CeMAP opens so many possibilities for artificial intelligence to enhance the productivity of brokers and lenders."
Digital mortgage platform, Koodoo, has created new AI technology which has passed a mock CeMAP exam, the UK’s mortgage advice qualification.
Applicants need a minimum of 70% in each of the three CeMAP modules in order to pass. According to the London Institute of Banking and Finance, it is estimated that applicants spend an average of 230 hours preparing for the examinations.
Across all three modules of the exam, KoodooLLM demonstrated sufficient accuracy to pass the mock examination.
Koodoo says the findings "not only highlight the remarkable advance of large language model performance, but also the potential for using these models as foundational layers to drastically increase the efficiency of mortgage advice activities in the UK".
It added that the technology could underpin a number of tools that will support human advisers to be more effective and efficient in providing regulated mortgage advice, enabling human advisers to spend more time with their clients and demonstrating their expertise in the space.
Andrei Lebed, CEO and co-founder of Koodoo, commented: “This is a historic breakthrough moment for the mortgage industry. Having a large language model pass CeMAP opens so many possibilities for artificial intelligence to enhance the productivity of brokers and lenders.
"We do not see a future where AI-powered bots replace human brokers. Our customers place too much value on personal relationships they build with our brokers, which I don’t believe will ever be replaced by technology.
"However, I do see a near-future where brokers have a trusted AI Co-Pilot next to them who is able to accurately and quickly support them with administrative tasks, resulting in a faster and more efficient mortgage process.
"This paves the way for an increasingly digital future for the UK mortgage industry, where AI Co-Pilots can support human brokers in providing customers with timely and informed advice."
UK news agency, Newspage, asked brokers for their views.
Riz Malik, founder and director at R3 Mortgages, said: "Last time I checked, the CeMAP qualification wasn't open book. While I applaud the language model's capabilities, it's like comparing apples to oranges. AI is certainly set to transform various sectors, catering initially to clients with basic needs. But my two decades in financial services have shown that there isn't a one-size-fits-all answer. AI could be a game-changer for brokers in back-office functions like research and compliance. However, if AI directs borrowers to lenders without the right guidance, that raises concerns. With the current challenges in implementing open banking to ease applications, I don’t foresee an AI-centric industry just yet."
Scott Taylor-Barr, financial adviser at Barnsdale Financial Management, commented: "Without knowing the ins and outs of how the test was performed or how the AI functions, my initial question was that if the AI is connected to the internet then surely it's cheating. Advisers have to sit their CeMAP examination in test conditions without access to the internet and other resources, so if the AI does have access to these resources as part of its functionality, can it really be said it passed the test? I am however really pleased to read how Koodoo see their AI as a support for human interaction between client and professional adviser and they are not pushing it as a replacement for that relationship. The AI-supported professional feels like the right way forward, in almost all areas where AI is being developed."
Stephen Perkins, managing durector at Yellow Brick Mortgages, said: "Programme it with enough past-paper questions and textbooks and any AI can pass any exam. The key thing here is that the CeMAP qualifications and equivalent are not fit for purpose for the main skills and attributes that make a great broker. So many clients fall between the cracks in lender criteria and experience and skill and lender relationships are key to success. AI and technology tools have a place in the future of the industry as a tool for brokers to save time and streamline processes but I cannot ever see them replacing the knowledge, experience and relationship-building qualities of human brokers."
Sabrina Hall, mortgage and protection adviser at Kind Financial Services, added: "Passing your CeMap exam doesn't make you an experienced and competent adviser. Experience of dealing with multiple lenders, solicitors and knowing the criteria of all the lenders helps with that. The biggest comment I get from my clients, however, is how great it was to have someone to talk to through the process. Communication and experience are a huge part of my role as an adviser and I think we are a long way away from AI being able to deal with that side of things."
