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Candor CEO on robot underwriters & the future of mortgage
February 11, 2021

Just five months into production and Candor has surpassed 250,000 automated underwrites, with >45,000 of those completed in January. It is also onboarding its tenth client.

Candor surpassed a big milestone having more than 250,000 loans pass through its adaptive loan underwriting engine just five months into production. The platform, which debuted in August 2020, is a first-of-its-kind Loan Engineering System that lenders use to automate the underwriting of a high-quality loan.  Candor Certified loans are backed by a defect insurance policy from one of the world’s largest and strongest insurance carriers.

Candor also signed its tenth client in January.  Alcova Mortgage joins a Top 5 Lender client, American Financial Network (AFN), American Pacific Mortgage (APM), and other top lenders already using Candor’s Loan Engineering System.  

Candor’s expert system automates underwriting through its patent-pending Knowledge Engineering Technology, which is a form of AI. The platform models the thinking of an underwriter to adaptively validate, verify and then underwrite data. Candor uses extensive data cross-check methodology between 1003 info, supporting documents, third-party data and the guidelines, and makes a decision to lend. 

After five months, Candor’s clients report an average of 18.7 day reduction in cycle time and a pull through increase of 14.6 percent.  That means for every 100 loans manufactured, Candor clients are closing, funding, and selling 14.6 additional loans for ~$4M in volume.  Clients also report a decline in underwriter touches from 2.7 per loan to 1.0 with no erosion to quality.

This reduction in cycle time and lift in pull through helps Candor’s clients capture revenue that they would not have otherwise and helps them tackle the challenge of scaling workforces to deal with increased demand in loan underwriting. Using Candor’s Loan Engineering System gives lenders desperately needed capacity.

Just five months into production and here are some figures to back Candor’s burgeoning success

  • Cycle time reduced an average of 18.7 days
  • Underwriter touches reduced from 2.7 to 1 per file
  • Processor productivity improved 20%+
  • 14.6% pull through lift added ~$4M in volume for every 100 loans closed