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Fully digital verifications are allowing loanDepot to automate the underwriting process for many of its customers, allowing the mortgage lender to issue conditional loan approvals to those who qualify for the process in minutes, the company said Tuesday.
LoanDepot said it’s been beta-testing its fully automated melloNow underwriting engine for the last several quarters, using it to analyze credit reports, detect fraud, and validate income and employment data.
Jeff Walsh
“We’re now able to provide our customers with the certainty and peace of mind that comes with quick loan approval, bypassing the delays and friction points typical of traditional loan evaluation and approval processes while improving overall loan quality,” LDI Mortgage President Jeff Walsh said in a statement. “Today’s consumers expect a fast and seamless digital experience, and with melloNow, we are delivering it.”
Rival Better Mortgage kicked off the year by launching a “One Day Mortgage” product, and within three months of its January launch said 40 percent of applicants were qualifying for the streamlined process.
Rocket Mortgage introduced a program called “overnight underwrite” in 2021, guaranteeing that eligible borrowers who submit the paperwork for a purchase application by 7 p.m. receive a verified approval by morning.
LoanDepot has long had a focus on technology, launching its end-to-end digital lending platform, mello, in 2017 after investing 18 months and $80 million in the project.
But more recently, rising mortgage rates have all but wiped out the company’s profitable refinancing business, and the company has struggled to grow its share of the purchase loan business even as it shed thousands of…