underwriting workflow, underwriters can immediately
begin evaluating the borrower loan file, which will
speed up the loan-production process.
Automation is key
Automation also can accelerate the critical task of
evaluating loan files to determine if the loans meet
underwriting standards, which helps ensure loan quality. Today, underwriters rely on checklists to evaluate
loans. The process is slow and error-prone, and critical calculations often are done manually, where errors
can be costly. Automation technology can complete
these checklists in a consistent manner, and flag only
those items that don’t “pass” and thus require a manual review.
Using automated data extraction (ADE) technology,
underwriters can complete checklists in seconds, cutting the time it takes to evaluate loan files by up to 80
percent. ADE technology automatically extracts critical data from loan documents, compares values across
documents in a fraction of a second, runs the data
through a pre-defined rules engine, performs calculations, and provides alerts on any values that fall outside of established parameters or tolerances.
This exception-based model eliminates the costly
and time-consuming “stare and compare” approach
to verifying data across several documents, and
OF YOUR PIPELINE
Try it Free for 14 Days
Never miss an important date or lose track
of a file’s progress again.
Morpipe’s powerful, intuitive software makes it easy.
Pipeline Management: No more spreadsheets, yellow pads
or sticky notes. Track key dates and data with at-a-glance ease.
Milestone Updates: Borrowers are automatically alerted as
soon as their status changes, saving you time and keeping your
clients in the know.
Customizable Interface: MorPipe’s dynamic system allows you
to customize key metrics that best fit your organization and team.
Dynamic Vault: All funded files are automatically archived into a
dynamic, searchable database so you can search fundings based
on Month, Rate, Program, Term and other customizable metrics.
Easily find those clients ripe for a refinance or program change.
step delivers benefits beyond productivity and cost
savings. Underwriters who are more productive will
underwrite higher-quality loans and do it more quickly.
Automation also frees underwriters to focus on
higher-level tasks that leverage their skills and experience, rather than spending most of their time on
tedious, repetitive tasks. This leads to increases in job
satisfaction as well as productivity, so under writers are
less likely to leave for other opportunities, taking their
experience and institutional knowledge with them.
As the mortgage industry struggles with loan-
production costs that remain stubbornly high, and near
tion for some of their most valuable employees. n
loans that require more careful scrutiny, such as loans
with non-occupant co-borrowers, loans on investment
properties, loans with borrower self-reported income,
and other loans with unique characteristics.
Automation also ensures that calculations are done
quickly and correctly. Without automation technology, underwriters must manually enter data into
spreadsheets, calculators, or loan-origination systems
to calculate the numerous financial ratios used in the
Any mistakes made while rekeying data could result
in faulty underwriting decisions that might negatively
affect a lender’s ability to sell loans or even lead to loan
buy-backs. Underwriters can save time and eliminate
errors by using technology that performs required calculations in a standardized, repeatable way — something auditors require.
n n n
Every step in the loan-manufacturing process can
benefit from technology, but underwriting deserves
special attention because automating this critical
<< Underwriting continued from Page 88 “Underwriting deserves special attention
because automating this critical step
delivers benefits beyond productivity
and cost savings.”