Automated Underwriting

Automated Underwriting

A process in which a computer program reviews relevant information in a loan application and makes a decision based on the method built into it. For example, automated underwriting may make a decision automatically based on the applicant's credit history, income, and the amount asked. Difficult decisions may be referred to human underwriters. Automated underwriting is believed to be more efficient and less biased than human underwriting. It is used especially for mortgages.

Automated Underwriting

A computer-driven process for informing the loan applicant very quickly, sometimes within a few minutes, whether the application will be approved, denied, or forwarded to an underwriter.

The quick decision is based on information provided by the applicant that is subject to later verification and other information obtained electronically, including information about the borrower's credit history and the subject property.

References in periodicals archive ?
US-based non-agency automated underwriting systems provider LoanScorecard has partnered with LoanStream Mortgage to power LSM's pricing and scenario tool, QualONE, the firms said.
While many companies already employ this technology via chatbots and automated underwriting, many executives see AI as being extremely important to business development and client service in the next three years.
They will increase their knowledge of Automated Underwriting Systems (AUS) and how to validate findings and feedback messages as well as acquire an understanding of basic loan eligibility for Fannie Mae and Freddie Mac.
In its push to raise the ceiling to 50 percent DTI, Fannie noted that all the loans would have to pass the standard tests of its automated underwriting system, which are designed to flag or reject excessive credit risks.
StoneRiver's experience enabling automated underwriting, especially in the Canadian insurance market, was also a contributing factor.
Country Financial set up an automated underwriting process for term and whole life applications in about 18 months, using an upgraded version of LifeSuite software from StoneRiver.
It is one of the industry's first fully electronic processes allowing clients to purchase life insurance with automated underwriting, and the potential for qualifying clients to bypass underwriting labs.
The digital platform that is to be offered to the customer as part of the association will include automated underwriting rules agreed to by Munich Re.
Bethesda, Maryland-based Overture Technologies announced it was integrating trended credit data into its automated underwriting (AU) system.
The firm enjoys strong relationships with wholesale lenders and uses automated underwriting. Experienced employees are expected to stay.
Fannie Mae (OTC: FNMA) said it has integrated Collateral Underwriter (CU) with the industry leading Desktop Underwriter (DU) automated underwriting system and EarlyCheck, the company's pre-delivery loan eligibility and data evaluation tool.
Automated underwriting rule sets have been utilized in underwriting rules engines for years in the United States.

Full browser ?