Opening the black box: Automated underwriting technology comes in many different shapes and sizes. Here's a guide to some of the options out there.
Mortgage Banking › Vol. 62 Nbr. 3, December 2001 ›
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Opening the black box: Automated underwriting technology comes in many different shapes and sizes. Here's a guide to some of the options out there.
To SAY THE ONLINE MORTGAGE INDUSTRY IS CONSTANTLY CHANGING WOULD BE UNDERSTATING THE OBVIOUS. The needs of lenders are changing every day, and vendors are coming in and out of the market faster than you can log on to the Internet.
In this atmosphere of change, it has become increasingly difficult to identify what products will stand the test of time. It's also hard to differentiate some of the services and products available and fit them with the needs of lenders. (See figures 1, 2 and 3 for features of sampled non-GSE AU systems.) For instance, many monolithic back-office system providers are dealing with new types of competition from systems that are automating the front end of the mortgage process. While many of these monolithic industry technology players have been trying to be all things to all people, lenders have started reaching out for more specialized automation. Vendors have answered the demand with systems designed to automate specific areas or designed for markets that have not been tapped, such as the subprime and jumbo markets. However, in an ironic twist, these same vendors are now creating mini-monoliths of their own by expanding their services beyond the initial offering, according to Craig Hughes, vice president of mortgage te...See the full content of this document
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