To expedite the mortgage approval process, Guaranteed Rate is now deploying Smart Underwrite technology by Gateless, a company that provides mortgage automation solutions.
In today’s fast-paced market, prospective homebuyers can miss the opportunity to buy their dream home while awaiting a mortgage approval. Smart Underwrite reduces time and effort, resulting in faster, if not instant, borrower approvals, the company says.
Smart Underwrite enables lenders like Guaranteed Rate to digitally read and interpret all critical loan data and documentation the moment it is received. For example, when a borrower provides W2s and paycheck stubs, Smart Underwrite identifies the documents, links them to the right borrower income source, extracts all relevant information, calculates monthly income, and clears any related underwriting conditions. It does this almost instantaneously, without human intervention, while ensuring compliance with Freddie Mac and Fannie Mae guidelines. Smart Underwrite uses the same intelligent automation to evaluate other key credit, income and asset documents – all the pieces needed to assess a borrower for a real-time loan approval, eliminating days from the process.
“This truly represents an historic milestone in the future of mortgage lending,” says Rick Lang, president of Gateless. “We now have AI [artificial intelligence] completing a material percentage of the loan processing and underwriting work, while virtually eliminating the risk of human error.”
For lenders, automation means significant cost savings, improved loan quality and a reduced potential for costly buy-backs. Borrowers get the certainty of immediate loan approvals, and real estate agents get fully approved clients, capable of competing with cash buyers.
“When Guaranteed Rate launched the world’s first entirely digital mortgage in 2015, it revolutionized the industry,” says Victor Ciardelli III, founder and CEO of Guaranteed Rate. “Now, with Smart Underwrite, we can continue making the process faster and even more streamlined for both our customers and real estate agents.
