Automated Appraisal Review Case Study

Automated Appraisal Review: 100% Increase in Productivity and Higher Loan Quality

In today’s mortgage environment, it is imperative that lenders maximize efficiencies, lower costs, and effectively utilize their most expensive resources: underwriters. That’s why MOZAIQ’s Automated Appraisal Analyzer is a critical success factor for any lender.

During the appraisal review process, underwriters are tasked with validating more than 200 different data values across ten or more separate documents in the loan file. For a typical lender, the appraisal review process is performed by a manual review of PDF documents, a review of the data in the system of record (the Loan Origination System—LOS), and a simple checklist. These reviews can be time consuming, on average taking up to an hour to complete per loan, a common bottleneck holding up the completion of the final underwrite of the mortgage loan.

If the appraisal review is performed inaccurately, the comments and clarifications requested downstream in the process will delay the closing timeline, lowering already razor-thin margins, reducing the loan quality, and negatively impacting customer service. In a competitive market, where lenders are fighting for customers, battling the regulators who are creating ever more stringent loan requirements, and desperately holding on to their brokers (for wholesale lenders), time to market and accuracy are a matter of survival.

The Solution

MOZAIQ’s Appraisal Analyzer, built on the industry-leading Checkpoint Automation Platform, automatically downloads the loan data directly from the LOS and extracts data (using intelligent document processing and machine learning) from the appraisal documents under review.

Data fields are intelligently extracted from the Appraisal, Title, Invoice, and Submission Summary Report (for either Fannie or Freddie) documents, and the fields are compared to the LOS fields via pre-built business rules. Any exceptions or errors are flagged by the system and sent to the underwriter for resolution. The automatically extracted Credit Underwriter (CU, as defined by Fannie and Freddie) score—indicating the level of risk of the loan—drives the depth of the analysis.

By the time the underwriter begins the appraisal review, the bulk of the analysis has been completed by the Appraisal Analyzer, and only the flagged items need manual review and decisioning. This substantially decreases the time spent performing the appraisal review and helps the underwriter request comments and/or clarifications as soon as possible.

The Benefits

MOZAIQ’s Automated Appraisal Analyzer enables the client to achieve 100% productivity increase, enabling 2x the loan processing throughput.

24 x 7 processing time enables the underwriter to immediately start performing the appraisal review without having to wait for the next one in the queue.

For a lender with an average processing volume of 1,000 loans per month, the Appraisal Analyzer saves approximately $500,000 per year.

The faster loan turn-around time and the higher loan quality strengthen the customer and broker relationships and increases competitive advantage for the lender.

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