Automated underwriting's next frontier: servicing: it's only logical--so why not move automated underwriting tools into servicing, where they can help determine best options for loss mitigation?

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Automated underwriting's next frontier: servicing: it's only logical--so why not move automated underwriting tools into servicing, where they can help determine best options for loss mitigation?

The history of automated decisioning in the mortgage industry is, for the most part, a snapshot of automated underwriting (AU) and, more specifically, a framed photo of the tools provided by the government-sponsored enterprises (GSEs)--Fannie Mae's Desktop Underwriter [R] (DU) and Freddie Mac's Loan Prospector [R] (LP). The adoption of these automated underwriting tools was so swift and so thorough that other investors (e.g., Countrywide Financial Corporation and GMAC-RFC) made the investment in their own tools in no small measure to harvest the automated decisioning momentum. / As inherent as DU and LP have become in the mortgage loan value chain, it's ironic that the automated determination of both loan risk and v...

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