AI Policy

1. Introduction

SRK CAPITAL INC. ("we," "our," or "us") is committed to the responsible and transparent use of artificial intelligence (AI) technologies in our mortgage services. This AI Policy outlines how we use AI, the principles guiding our use, and your rights regarding AI-assisted services.

2. How We Use AI

We employ AI technologies to enhance our mortgage services in the following ways:

• Customer Support: AI-powered chatbots and virtual assistants to provide instant responses to common inquiries
• Document Processing: Automated extraction and verification of information from loan documents
• Risk Assessment: Preliminary evaluation of loan applications to streamline the approval process
• Personalization: Customized loan recommendations based on your financial profile
• Fraud Detection: Identifying potential fraudulent activities to protect you and our services
• Process Optimization: Improving operational efficiency to provide faster service

3. Our AI Principles

Transparency

We are committed to being transparent about when and how AI is being used in our services. You have the right to know when you are interacting with an AI system versus a human representative.

Human Oversight

All significant decisions, especially those related to loan approval or denial, involve human review and oversight. AI assists but does not replace human judgment in critical decisions.

Fairness and Non-Discrimination

We actively work to prevent bias in our AI systems. Our AI tools are regularly audited to ensure they do not discriminate based on race, color, religion, national origin, sex, handicap, familial status, or any other protected characteristic.

Data Privacy

AI systems process data in accordance with our Privacy Policy. We implement strong security measures to protect your information when it is processed by AI systems.

Accuracy

We continuously monitor and improve our AI systems to ensure they provide accurate and reliable information. However, we encourage users to verify important information with our human representatives.

4. Types of AI We Use

Machine Learning Models

We use machine learning to analyze patterns in loan data, helping us make more informed decisions and provide better service.

Natural Language Processing (NLP)

NLP helps us understand and respond to customer inquiries, process documents, and extract relevant information from text.

Predictive Analytics

We use predictive models to assess risk, estimate property values, and forecast market trends to better serve your mortgage needs.

Computer Vision

Used for document verification and property assessment through image analysis.

5. Your Rights and Choices

Regarding our use of AI, you have the right to:

• Request human review of any AI-assisted decision
• Opt out of certain AI-powered features where alternative options are available
• Receive an explanation of how AI was used in decisions affecting you
• Report concerns about AI bias or errors
• Access information about what data is being processed by AI systems

6. AI and Loan Decisions

While AI may assist in the loan application process:

• Final loan approval decisions are always made by qualified human underwriters
• AI recommendations are tools to assist, not replace, human decision-making
• You can request details about how AI was used in your application process
• Adverse action notices will clearly explain the reasons for any loan denial

7. Data Security and AI

We implement robust security measures for AI systems:

• Encryption of data in transit and at rest
• Regular security audits of AI systems
• Access controls and authentication measures
• Monitoring for unauthorized access or anomalies
• Compliance with industry security standards

8. Third-Party AI Services

We may use third-party AI services to enhance our offerings. These providers are:

• Carefully vetted for security and compliance
• Required to meet our data protection standards
• Bound by confidentiality agreements
• Prohibited from using your data for their own purposes

9. AI Limitations

We acknowledge that AI has limitations:

• AI may not understand complex or unique situations
• Responses may occasionally be inaccurate or incomplete
• AI cannot replace professional financial advice
• Technical issues may occasionally affect AI performance

For these reasons, we always recommend consulting with our human mortgage professionals for important decisions.

10. Regulatory Compliance

Our use of AI complies with all applicable laws and regulations, including:

• Fair Credit Reporting Act (FCRA)
• Equal Credit Opportunity Act (ECOA)
• Fair Housing Act
• California Consumer Privacy Act (CCPA)
• General Data Protection Regulation (GDPR) where applicable

11. Updates to This Policy

As AI technology evolves, we may update this policy to reflect new capabilities or address new concerns. We will notify you of significant changes through our website or direct communication.

12. Contact Us

If you have questions, concerns, or complaints about our use of AI, please contact us:

You may also contact our AI Ethics Officer directly at: ai-ethics@srkloans.com

13. Reporting Issues

If you believe our AI systems have made an error or exhibited bias, please report it immediately. We take all reports seriously and will investigate promptly. You can report issues through:

• Our customer service hotline
• Email to srkcapital@arborfg.com
• Written correspondence to our headquarters
• Through your loan officer or mortgage broker