Automating the underwriting process has been one of the biggest leaps forward in the modern mortgage era, ensuring consistent, fair and safe lending after the financial crisis. But the many benefits of using automated underwriting systems — required for agency loans —haven’t been affordably available for lenders and investors who keep loans in portfolio. For those non-agency loans, many financial institutions are still relying totally on a manual process, which increases risk and leaves many high-quality lending opportunities on the table.
LoanScorecard solves this problem with its Portfolio Underwriter solution, the only non-agency AUS available today. This game-changing solution allows direct lenders, wholesalers and investors to confidently, consistently and securely deploy more capital and distribute differentiating loan products to this underserved and growing market.
“Manually underwriting every file presents a high risk of human error, is time-consuming and costly, and can be problematic for managing exceptions consistently and without unintended bias,” said executive director Ben Wu. “By running the Portfolio Underwriter engine with LoanScorecard, you are in control of your credit risk profile and documentation requirements. We are the only technology/underwriting engine that can run guidelines of your specific loan programs.”
Portfolio Underwriter provides originators and underwriters with a unique, in-depth findings report branded with their company’s logo and information. It also includes a detailed underwriting analysis based on specific credit policies and criteria.
Lenders, wholesalers and investors rely on Portfolio Underwriter for:
At whatever point in the process that clients would run Desktop Underwriter (DU) and Loan Product Advisor (LPA), they run LoanScorecard instead for loans outside agency parameters. Instead of setting up an entirely different department for the manual processing of non-QM loans, Portfolio Underwriter helps clients reduce overhead, increase efficiency and translate the story of a loan in real-time.
Portfolio Underwriter provides data-driven analysis that safeguards lenders or wholesalers from fair lending violations resulting from the inherently inconsistent and resource-draining manual underwriting process.
The LoanScorecard engine translates guidelines and provides an automated, rule-by-rule analysis and result so that lenders can reliably underwrite loans and focus more on managing exceptions.
With Portfolio Underwriter, clients can confidently open a non-QM lending channel to drive new business.
The efficiencies of the non-agency AUS allow for more production per individual, enabling clients to rapidly scale non-agency lending to achieve or exceed overall revenue goals.
“Clients and influencers are learning that along with DU and LPA, Portfolio Underwriter is the third leg to the automated underwriting ecosystem and the key to serving more borrowers and increasing production in the much desired non-QM and portfolio lending market,” Wu said.
“Non-agency lending is now taking off as a viable, market-driven channel with more and more players entering the space or doubling down with our Portfolio Underwriter to navigate the nuances and simplify complexities for robust mortgage lending growth and scalability.”
PRODUCT: Portfolio Underwriter
SNAPSHOT: Portfolio Underwriter from LoanScorecard enables capital market investors, banks, and credit unions to analyze loan data based on their unique products and specifications in seconds. The engine makes it easier to deploy capital, is more efficient and consistent than manual underwriting, and ensures soundness in mortgage operations in regards to fair lending. The engine empowers non-QM market leaders and enables new players to enter the space with confidence.