AI Autopilot Hits Underwriting

AI Pre-Underwriting Goes Mainstream

Blend, the POS platform many originators already use, just launched Autopilot, an AI tool built for pre-underwriting. It’s not alone — Network Funding is currently evaluating four competing platforms, and Rich Jefferson says the field is moving so fast that “the vendor you choose may not be the vendor you want to use tomorrow.”

What these tools actually do: they give an originator an upfront, AI-generated underwrite before the file ever reaches a human underwriter. Trip wires and missing documentation get flagged early, so by the time the loan reaches underwriting, the issues are already cleared — the goal being a faster approval, potentially a one-touch clear-to-close.

Michael raised the question everyone in the industry is asking: does AI put loan officers’ jobs at risk? Rich’s answer: no, because origination requires a license, and “you cannot license an AI agent — it has to be a warm-blooded person.” Network Funding frames AI as a force multiplier rather than a replacement, and says the tools disproportionately help newer originators — those with under five years of experience — perform like seasoned pros.

To drive adoption, NFLP runs nationwide peer-to-peer coaching calls with loan officers in a “show and tell” format: the company demos a tool, LOs demo what they’re already using, and everyone on the group call learns from each other.

Economic Snapshot: Home Sales, Jobs, and Rates

June existing home sales dipped slightly, which Rich attributes to a strong prior month when buyers locked in before renewed volatility pushed rates back up. The June jobs report also came in soft after a strong prior report driven partly by seasonal state and local government hiring. Jobless claims ticked up but still landed below expectations. The Fed’s June meeting minutes read hawkish, with officials open to larger rate hikes later this year if inflation continues climbing. Despite all of that, home prices hit an all-time high last month — about 1.3% growth, or roughly $5,000 on a $450,000 home.

PSA: A CFPB Executive Order Targets Mortgage Regulation

Rich flagged a March executive order directing a review of mortgage industry regulation for cost-driving rules that don’t protect borrowers. The CFPB is now soliciting industry input — loan officers can send feedback through their lender, who routes it to the CFPB. Rich’s wish list includes trimming redundant change-of-circumstance disclosures and shortening wait times tied to minor pricing changes.Watch or listen to the full episode on YouTube.

Today in mortgages is produced by Network Funding, LP, which is an equal housing lender, NMLS# 2297.

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