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Speeding up the Underwriting Process

It has become more difficult to underwrite a loan, according to the results of a recent CoreLogic survey. According to CoreLogic, 55 percent of underwriters agree that it has become more difficult to underwrite a loan, and around 56 percent of underwriters said they typically need more than 30 days to complete the process, compared to 44 percent who say they can do so in less than 30 days.

CoreLogic notes that the extended underwriting timeline may be a result of too many people involved in the underwriting process. Around 76 percent of underwriters said that between two and five people in their organization touch a loan file before it closes.

Other factors, such as verifying income, also add additional time. CoreLogic says that it typically takes 44 percent of underwriters one to two days per loan file to verify income. Additionally, 69 percent of underwriters have to ask their applicants more than once for documentation, with 66 percent noting that they need to ask applicants more than two or three times. Direct access to applicant data will speed up the underwriting process by one to two days, according to respondents.

Documentation is listed as the least efficient part of underwriters workflow (according to 23 percent of applicants), with income, verification, loan files, and communication also cited as reasons for inefficiency. More than 70 percent of underwriters said quick, online access to application status would make their job easier, and more than 80 percent said that a solution that automatically tracks and documents underwriting exceptions and decision rationale would help their workflow.

In order to address these concerns, CoreLogic announced AutomatIQTM Borrower, phase one of a comprehensive new underwriting solution designed to help lenders streamline their current mortgage workflows by digitizing, standardizing, and automating borrower analysis and verification.

"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. "Based on our industry-leading data resources and analytics expertise, CoreLogic is uniquely positioned to deliver this comprehensive digital underwriting solution that lenders need."

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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