With many expressing dissatisfaction about the speed of the current loan approval process, artificial intelligence (AI) may soon play a major role in deciding how much mortgage one can get.

CoreLogic, a global property and analytics provider, released a blog post saying that the current loan approval process is lengthy and often inefficient — many forms still require a physical signature and several meetings between borrower and lender.

While recent years saw the rise of several companies that try to streamline the mortgage application process, CoreLogic senior product manager Brandon Brahms argued that it is still unnecessarily long and subjective for many borrowers.

“With so many potential income variables to calculate — from passive and portfolio income streams, like rental and investment revenue, to traditional income sources like borrower salary, raises and bonuses — this process requires multiple touch points and review cycles,” Brahms wrote.

Artificial intelligence often comes up as a potential solution for a quicker approval process — Freddie Mac (the Federal Home Loan Mortgage Corporation) has suggested that it can guide lenders toward better estimating how likely someone is to repay a mortgage through data and statistics, as a Mortgage News Daily article recently pointed out.

Some lenders have already started to make use of it — LoanDepot uses it to give customers mortgage information and offer loan pre-qualification prior to even starting the application.

But even as some struggle to embrace AI into the mainstream, automation is being pushed for in the industry as homebuyers — particularly millennial consumers — increasingly come to expect a faster process.

“By automating the collection of a borrower’s income data and standardizing a workflow for income analysis and calculation, underwriters would benefit from accelerated processing and more accurate and consistent results,” Brahms wrote.

Email Veronika Bondarenko

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription