What is the meaning of automated underwriting?
Automated underwriting is a computerised loan underwriting decision. It is widely seen that screening and processing a loan application is a time-consuming process and is also prone to human errors. However, automated underwriting involves checking complete loan applications for retrieving relevant data based on the credit history of the borrower and finally arriving at a logical loan decision.
It helps in saving time as it often leads to instantaneous approval or denial of the loan as it is based on algorithms.