Non-QM lending is increasingly becoming a standard part of mortgage origination, moving beyond its previous role as an alternative option. Angel Oak Mortgage Solutions, in collaboration with Prudent AI, is implementing technology to expedite the eligibility assessment process for these loans.
Previously, determining eligibility, particularly for income verification from bank statements, was a manual and time-consuming process. This often involved individuals reviewing statements and manually calculating figures, leading to significant delays and wasted effort on loans that ultimately did not qualify.
Angel Oak has shifted its focus to calculating bank statement income at the very beginning of the loan application process. This upfront calculation aims to quickly identify loans with a viable chance of proceeding, saving time and resources for both the lender and originator partners.
Prudent AI's technology, specifically the 'Upfront Eligibility' framework, is designed to automate these assessments. The goal is to provide immediate answers regarding loan eligibility, transforming a process that once took days into one that can be completed in minutes. This 'shift left' approach, as described by Prudent AI Ambassador Suha Zehl, involves moving critical decision-making processes earlier in the origination workflow.
This acceleration is expected to enhance transparency for borrowers, reducing surprises and improving the overall customer experience. By providing quick answers, even rejections, lenders can allocate resources more effectively and avoid investing time in loans unlikely to reach closing. The efficiency gains are also seen as an opportunity to increase overall lending capacity rather than simply reduce headcount.
