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Automated Underwriting

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Home Real Estate Terms Glossary Automated Underwriting

What is Automated Underwriting?

In real estate, automated underwriting means a software application is intaking data about a loan applicants and processing the loans to make recommendations to the lender on whether to approve or deny the mortgage loan. Automated underwriting reduces the amount of labor a lender may need to use in order to process loans. Many banks and financial institutions have built automated underwriting applications and processes.

Automated undwriting software is sophisticated and powered by algoryhtms that are programmed to act as humans making decisions on whether to underwrite a mortgage.

Automated Underwriting Examples

Examples where you will find automated underwriting include:

  • Example 1. Applying for a mortgage at a large and sophisticated lender.
  • Example 2. A technology startup within the mortgage and real estate space.

Here’s Investopeida’s definition of automated underwriting .

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