Overview
Many lenders continue to adopt AI-enabled tools to streamline parts of underwriting, such as document collection, income and asset verification, and fraud detection. These tools don't replace human oversight but can speed up routine checks and surface issues earlier in the process.
Potential Benefits
- Faster turn times from application to clear-to-close
- More consistent application of underwriting guidelines
- Reduced manual errors in data entry and calculations
Important Considerations
- Transparency around decisions and data sources is still essential.
- Fair lending and bias testing must remain a core requirement.
- Borrowers should understand what they're consenting to when connecting accounts or sharing data.
Technology should augment, not replace, sound underwriting judgment. Always confirm how your data is used and stored.
What Homebuyers Can Do
- Ask lenders what parts of the process are automated and how exceptions are handled.
- Provide complete, legible documents early to minimize back-and-forth.
- Monitor your credit and avoid opening new accounts mid-process.