Loan files checked before they fund, with every finding traced to its page.
Bluegrass builds loan file review systems for mortgage and auto lenders, banks and credit unions. The systems index the file, calculate income, check conditions and funding packages and run post-closing QC, linking every finding to its page for your staff to confirm.
A lender's margin depends on how many loans each processor, underwriter and funder can handle and how few defects surface after closing, and both come down to reading documents accurately at volume.
What loan file review involves today
A mortgage file runs to hundreds of pages, and self-employed income means working through business returns line by line. An auto loan funds against the dealer's package, which must match the approval before the money moves.
Most checking is still manual, so loans wait on conditions, dealers wait to be paid and missed defects return as repurchase requests. Every check can be measured against your staff's decisions, which makes this one of the safest places to begin.
How automated loan file review works
- 01
Index the file
Every document is identified, split and indexed, whether a PDF, scan or phone photo, and its data is extracted and compared with the application.
- 02
Calculate income
Income is calculated from pay stubs, W-2s and tax returns under your guidelines and the investor's, with each figure linked to its source line for the underwriter to confirm.
- 03
Clear conditions and stips
Each document received is checked against the condition or stipulation it should clear, so processors and underwriters work from the real gaps rather than the whole file.
- 04
Review the funding package
Before funding, the dealer package is checked against the approval, including contract terms, title application, proof of insurance and add-on product pricing and eligibility.
- 05
Check after closing
Closed loans are reviewed against your quality control plan and investor guidelines, with each finding linked to its page, so the QC team reviews findings rather than whole files.
Where people stay in the loop
Credit decisions, the clearing of conditions and the decision to fund stay with your underwriters, processors and funders. Each type of check is tested against their decisions on your past files and relied on only once its accuracy is agreed.
Anything the system cannot read with confidence, such as a blurred page or an unfamiliar document, goes to a person rather than being guessed, and their decision joins the evaluation set.
The systems it works with
The system works with your loan origination system, the imaging system that holds the file and the portals and inboxes where documents arrive. Findings appear in the origination system or a review queue, whichever your team prefers.
When to build it, and when to buy it
Several established vendors offer loan file classification and extraction, and some origination systems include it, so a lender with standard products may only need to switch on a feature it already pays for.
A custom build makes sense when your guidelines, products or dealer network are specific enough that generic extraction leaves most checking to people, or when origination, funding and QC should share one pipeline rather than three tools.
We hold no reseller agreements, partner quotas or revenue share with any vendor, so a recommendation to buy is made on its merits.
What this work costs you today
A quick way to put a number on the problem before talking to anyone, using your own figures rather than ours.
Enter your volume and the minutes each one takes to see what the work costs in a year.
The numbers stay in your browser and are not stored or sent anywhere. Bring the figure to the first call, since it is the baseline any system should be measured against.
Questions about loan file and funding review
- Does it make credit decisions?
- Credit decisions stay with your underwriters and credit policy, and the system does not score applicants or predict default. It reads, calculates and recommends, showing the documents behind each recommendation.
- Can it read scanned and poor-quality documents?
- Loan files are full of scans, phone photos and faxes, so the evaluation uses a sample of your own files. Anything the system cannot read with confidence goes to a person.
- Does it work for both mortgage and auto loans?
- It works for both, with different rules: mortgage files are checked against your guidelines and the investor's, and auto files against the approval and your dealer agreements. Accuracy is measured on your own files of each type.
Related systems
A senior team that has done this before
We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.
Selected work
We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.
Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.
We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.
About the team- Dozens
- of insurance companies, RIAs, banks and fintechs we have worked with
- 50 yrs
- combined AI engineering experience
- 10+ Patents
- granted to members of the team
- 100%
- of the IP we build is assigned to you
Find out whether this is worth building for your business.
A 30-minute call with an engineer usually shows whether this is worth building. Within a week you will have a free written point of view, including whether a packaged product would serve you better.