Property analytics company CoreLogic has launched a new digital mortgage underwriting solution for lenders.
AutomatIQ Borrower evaluates how much debt a borrower can take on by looking at consumer data and income verification services. It is designed to be the first of a series of new initiatives to build a more efficient lender underwriting system.
The goal, according to CoreLogic, is to automate an industry that still relies primarily on paper. Built off of FactCheck, the new solution makes it possible to upload the documents that usually comprise the mortgage application process — for example, proof of income data and agreement contracts — into a single online platform.
“Despite some recent notable improvements in consumer-facing Point of Sale solutions, underwriters are essentially following the same manual processes that they’ve followed for years,” said Jay Kingsley, executive for Credit Solutions at CoreLogic, in a statement.
This usually means stacks of hand-signed papers that need to be physically reviewed by an underwriter over a matter of days, if not weeks.
The old paper-heavy underwriting model is no longer competitive, Kingsley added. According to CoreLogic, 55 percent of underwriters feel it is becoming more difficult to underwrite a loan while 69 percent have had to remind their clients to submit documents more than once.
Kingsley said that, through AutomatIQ Borrower, lenders will be able to digitize, streamline and automate the mortgage application process. Over the last few years, numerous tech companies have tried to shift the mortgage application process online through new cloud and software programs.
“It’s about more than turning paper into data points,” Kingsley said. “It’s about reimagining how a mortgage is manufactured and building confidence back into the underwriting ecosystem. AutomatIQ Borrower is designed to do just that.”
Over the new few weeks, CoreLogic will be unveiling other new underwriting tools, the company said.