Relight my buyer

Faced with a potential groundswell in first time buyer interest, lenders will need to make better use of loan software in the underwriting process if they are to meet the anticipated market demand whilst effectively managing the risk associated with higher LTV products.

With wholesale funding still in short supply and an increased emphasis on Treating Customers Fairly (TCF), providers of higher LTV products will need to strike a new balance between the manual underwriting process and automation in order to retain operating profit margins.

The three main areas in the underwriting process are credit score, income analysis and security. And the critical factor for lenders going forward will be the ability to fully manage and understand the human and automated sides of the business.

With these new higher LTV mortgage offerings, affordability will be even more key to the underwriting process.  Lenders will be even keener to establish a true picture of the customer's financial position before making a final loan offer.  Automated underwriting is a system that can provide a full credit decision and loan specific conditions based on data provided and a trusted credit report prior to the final loan approval by a human underwriter.

Automation provides the best way to balance efficiency with loan quality as well as establishing consistency and control...

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