Partnership aims to accelerate the origination process
Gateless, a technology company providing the mortgage industry with AI solutions, announced this week it has established a strategic partnership with Google Cloud to accelerate document classification and extraction coverage used by its Gateless Smart Underwrite solution.
The partnership will connect Google Cloud’s DocAI capabilities, which uses machine learning on a scalable cloud-based platform, to help organizations scan, analyze, and understand documents, with Gateless’s proprietary technology to increase the number of documents that can be identified and used to extract meaningful data, officials said.
Company officials said that from the moment Smart Underwrite has visibility into loan data and documentation, it can identify required underwriting conditions, task the right parties to satisfy those conditions, then extract, interpret, calculate, clear and underwrite conditions, without an underwriter. The innovative technology can eliminate 10-15 days in unnecessary loan manufacturing time, drastically reducing the cost to originate a loan and creating a more seamless experience for borrowers.
Rick Lang, COO of Gateless, explained the dynamics of the alliance in response to queries from Mortgage Professional America: “The partnership between Gateless and Google will allow Smart Underwrite to identify and extract data from a higher percentage of loan documents submitted by borrowers. Smart Underwrite then uses that data to automate some of the activities otherwise performed by human beings, e.g., processors and underwriters, which can dramatically reduce the time to originate a loan.
“For example, once a borrower submits W2s and paystubs used for the validation of income needed to support repayment of a loan, those documents might sit in queue for 2-3 days, perhaps more, before a human being: 1) validates the documentation provided was in fact what was requested, and 2) reviews that documentation to calculate a gross monthly income amount. Smart Underwrite can complete such an activity within minutes. Multiply that scenario several times over and Smart Underwrite can help lenders reduce the time to originate a loan by 10-15 days. For lenders, this means significantly reduced costs; for borrowers, a simpler, more expedited process.”
Read more: Loans are taking two months to close, what can originators do?
Janet Kennedy, vice president, North America Regions, for Google Cloud, explained the alliance: “Simplifying the underwriting process with AI technologies has become increasingly important to lenders as they digitally transform their business. We’re pleased to partner with Gateless by coupling our Lending DocAI capabilities with its Smart Underwrite solution to provide customers with the technologies needed to accelerate document classification and make loan processing faster and easier for end customers.”
Gateless was launched in March 2021 to bring the industry next-generation loan processes by eliminating limitations. The company’s award-winning suite of AI Mortgage technology is designed to accelerate the loan origination process, which can save lenders more than 10 days from application to full approval.
Slow originations have long been a bone of contention in the mortgage industry. Ironically, it was during the peak period of the pandemic that technological strides were made – out of necessity, to connect clients and companies in a world adhering to physical distancing requirements.
In one report, the length of time it takes to close a home loan has continued to decrease thanks to the adoption of digital mortgage tools. The average time to close on all loans had dropped to 51 days last April, according to data from ICE Mortgage Technology’s Origination Insight Report.
Read more: Mortgage applications up again as rates stay low
“The decrease in average time to close is not surprising, given the increase we have observed in the adoption of digital transformation tools, such as AIQ, our artificial intelligence offering that automates workflows for shifting to a more data-driven process, and consumer engagement suite for automating communication to all parties in the transaction,” Joe Tyrrell, president of ICE Mortgage Technology, said at the time.
Tyrrell added that this trend aligns with a previous survey, in which both borrowers and lenders reported that digital mortgage technologies are making it faster and easier to close a mortgage loan, thus improving the overall experience for participants.
Gateless officials describe the company as one that combines veteran industry expertise with Artificial Intelligence (AI) to create real, proven solutions that span the entire mortgage process.
Founded by Guaranteed Rate president and CEO Victor Ciardelli, the company was formed when Guaranteed Rate acquired AI Foundry, a business unit of Kodak Alaris. The solutions provided by Gateless incorporate the latest in AI with patent-pending machine learning and machine-vision technology that helps automate the mortgage process, increase productivity, and lower costs.
Read next: Origination report shows technology accelerating time to close
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