Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

Rohit Chopra pleads the fifth on QM rule

Consumer Financial Protection Bureau Director Rohit Chopra, in his first report to Congress, answered for decisions made by his predecessor, and provided some indication of his priorities going forward.

How to simplify the appraisal process for everyone in today’s hot market

While the world might be slowly getting back to normal, the housing boom is far from over. Appraisers need to make sure they have the right tools to manage the high demand.

Which core segments of brokerage make the most money

Today’s HousingWire Daily is a RealTrending crossover episode. It features Tracey Velt, editorial director at HW Media Company RealTrends, who interviews Chris Kelly and Christian Wallace.

FintechMortgage

Candor CEO on robot underwriters & the future of mortgage

Thomas Showalter sits down with HousingWire to talk about automating the underwriting process

HW+ candor

It wasn’t long ago that scribes were writing the obituary of the mortgage underwriter.

And yet, during the COVID-19 pandemic, the underwriter has become the most sought-after professional in the mortgage industry. Some underwriters were commanding five-figure bonuses on top of six-figure salaries. The problem is, there just aren’t enough of them.

That didn’t change the fact that mortgage lenders had hundreds or thousands of loans to process a day, and an underwriter can only move so quickly. It was apparent that the origination volume – even at a record high – was being artificially constrained because lenders couldn’t keep up. Many lenders took 60 days or more to underwrite and deliver a loan.

Thomas Showalter, the CEO and founder of mortgage AI firm Candor, says he has a solution – automating a significant part of the underwriting process, freeing them up to tackle more loans.

According to Showalter, Candor has reduced the cycle time by an average of 18.7 days, processor productivity improved 20% or more, and the underwriter touches reduced from 2.7 to 1 per file. The 6% pull through lift added $4 million in volume for every 100 loans closed, the company claims.

Showalter says he doesn’t want to put underwriters out of a job. Quite the opposite. He says he merely wants to help them become more productive.

His self- and angel-funded mortgage tech company passed its 50,000 loan stress test in the fall. They’ve already got a top five originator as a client, and a few others in the top 25.

HousingWire caught up with Showalter to talk about existing mortgage tech, the future of the underwriter, the complexities inherent in automating mortgages, and much more.

This interview has been lightly edited for length and clarity.

HousingWire: Could you walk us through how the product works? Is it like a crawler? How much of the loan application can Candor automate?

Thomas Showalter: So the way we distribute Candor is the product is through your lender’s loan origination system. Let’s say they’re an Encompass user. That’s about 40% of the users out there right now, and we’re affiliated with Encompass. So they would go into the Encompass, they would click on Candor, it will pull up their loan and then they would go within Candor.

This content is exclusively for HW+ members.

Start an HW+ Membership now for less than $1 a day.

Your HW+ Membership includes:

  • Unlimited access to HW+ articles and analysis
  • Exclusive access to the HW+ Slack community and virtual events
  • HousingWire Magazine delivered to your home or office
  • Become a member today

    Already a member? log in

    Most Popular Articles

    Why brokerages and mortgage lenders are rushing into JVs

    Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy. HW+ Premium Content

    Oct 25, 2021 By and

    Latest Articles

    Another profitable quarter for Realogy, but what’s next?

    Realogy made a profit for the fifth straight quarter. But the brokerage conglomerate faces questions about how its business is diversifying especially amid a slightly cooler housing market. HW+ Premium Content

    Oct 28, 2021 By
    3d rendering of a row of luxury townhouses along a street

    Log In

    Forgot Password?

    Don't have an account? Please