Candor Technology Inc., a mortgage artificial intelligence firm focused on automated mortgage underwriting decisions, has conducted layoffs as lenders rush to cut costs.
“Candor is executing a change in strategy to address the ever-changing mortgage market and to pivot along with client operations,” Tom Showalter, CEO of Candor, said in an e-mailed response.
With various headwinds working against the mortgage industry, Candor is in a position of optimizing personnel levels, Showalter explained.
Candor didn’t respond to requests for comment on the size of the company and the layoffs. The company is estimated to have between 51 and 200 employees with 65 employees registered on LinkedIn.
“Future development projects will follow this collaborative approach with our clients and strategic partners. Candor’s pending enhancements and new products will continue to provide maximum value to all stakeholders, positioning them to excel amidst changing conditions,” Showalter added.
The company debuted in August 2020 with a mission to automate much of the underwriting process when making income, asset and lending decisions. The firm’s automated underwriting tech is designed to augment human underwriters’ capabilities, allowing underwriters to handle more loans.
According to the firm, clients of Candor shave about 14 to 19 days from cycle time, as the technology eliminates queuing.
The Georgia-based tech firm provides automated underwriting for 40 lenders, including American Pacific Mortgage, American Financial Network, American Financing, Alcova, Florida-based FBC Mortgage and Homestar.
In August 2021, Candor raised $12.5 million in Series A funding, led by Arthur Ventures.
The company had plans to develop automated appraisals as well as title insurance processes.