How Does Automated Underwriting Improve The Mortgage Process?
Lower costs. Rather than collecting reams of documents, most originators now can process a loan with just a paystub, bank statement and W-2 and sometimes even less. This cuts originators’ costs by hundreds of dollars per loan. Expanded markets. Automated underwriting helps the industry serve more borrowers. For instance, in the refinance boom of 2001-03, the industry has processed three times the volume that occurred during the last refi market of the early 1990s, even through the drop in rates was comparable in both periods. The big difference: automated underwriting was broadly used in 2001-03. Faster, fairer lending decisions. Speed and fairness are the hallmarks of automated underwriting. Within minutes of submitting a loan application to Loan Prospector, originators get a response back from us for more than four out of five loan applications, our response is that we will purchase the loan. Originators then have quick access to a broad range of mortgage programs and products. Autom
