The Inevitability of AI Underwriting

February 17, 2025

Not long ago, a mortgage lender confidently declared that they wouldn’t use AI for underwriting—at any price—if the results weren’t fully warranted. While their risk aversion was understandable, their hesitance to even test AI stood in stark contrast to the reality of its increasing prominence.

The Game-Changing Implications of AI Underwriting

The speed and accuracy with which Brimma delivered this AI-driven self-employment income calculation solution signals a fundamental shift in mortgage underwriting. If such a complex task can be automated so rapidly, the industry must consider the broader implications:

• Cost Efficiency: AI underwriting dramatically reduces overhead, allowing lenders to process more applications at a fraction of the cost. AI can also be “always ON” such that it know when it has received everything it needs to finalize calculations and can immediately complete it’s assigned task(s).
  
• Accuracy & Compliance: AI eliminates human error and ensures compliance by cross-referencing data with regulatory guidelines in real time. When trained correctly, it does not need to be “fed” updates and bulletins.
  
• Scalability: AI enables lenders to handle higher volumes without expanding staff, making it a perfect solution for fluctuating market conditions.
  
• Risk Reduction: With AI-driven anomaly detection, lenders can proactively mitigate risks before they impact loan performance. Think, for example, of missing documentation that might otherwise slip through the cracks.
  

What Else Can AI Underwriting Handle?

Given how easily an experienced technology company like Brimma can develop AI for self-employment income calculations, it seems inevitable that AI can be trained to handle virtually all underwriting scenarios, including:

• Income Analysis for W-2 Employees
  AI can instantly verify and calculate borrower income based on pay stubs, tax documents, and employer verification databases.
• Asset Verification & Liquidity Analysis
  AI can assess a borrower’s liquid and non-liquid assets, ensuring they meet reserve requirements and identifying anomalies.
• Debt-to-Income (DTI) Calculation
  AI can factor in all debt obligations and income sources to generate precise DTI ratios without human intervention.
• Creditworthiness & Risk Assessment
  AI models can analyze thousands of credit data points, identifying potential red flags faster than a human underwriter.
• Property Valuation & Collateral Analysis
  AI can cross-reference appraisal reports, property tax records, and market trends to assess collateral value and flag inconsistencies.
• Fraud Detection & Compliance Checks
  AI systems like Brimma’s DocFlow integrate fraud detection models, ensuring that loan files adhere to lending guidelines before submission.

The Path to Full AI Underwriting

Brimma’s success in solving the self-employment income challenge is just the beginning. With DocIntel+DocFlow, Brimma is positioned to offer a complete AI-powered mortgage underwriting system, capable of handling all aspects of loan approval.

For lenders, the choice is no longer whether to adopt AI, but when and how. Those who embrace AI early will lead the next era of mortgage lending, while those who resist may find themselves at a severe competitive disadvantage.

The future is clear: AI underwriting is inevitable, and Brimma is leading the charge. 🚀

Want to see this AI in action? Send an email to salesinfo@brimmatech.com …