Automated Underwriting of mortgages means a procedure where AI technology helps in electronically implementing the decision-making procedure for generating and sanctioning loans on the basis of credit reports.
Automated underwriting of a mortgage is a procedure driven by technology, and comes into play whenever there is any loan to be sanctioned or confirmed. This evaluates risks involved with the loan, after analyzing the borrower’s credit report and other information. The underwriting procedure in this case, makes use of algorithms which make the procedure nearly error-free and a lot faster.
Automated underwriting is steadily becoming a preferred pick for several lenders and financial institutions in the home loan or mortgage space. It is often enabling faster decision-making and sanctioning of home loans in recent times as well.
