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Article: Wrestling Over Automated Underwriting.(Although automated underwriting has helped lenders close more loans than in the past, many still have lingering doubts about its use.)
- Article from:
- Bank Technology News
- Article date:
- November 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Seldom in the history of the mortgage business has one deal caused so much as when Freddie Mac agreed to accept Norwest's proprietary automated underwriting decisions. Norwest, for its part, agreed to sell all of its loans to the government-sponsored enterprise (GSE). As for what it will mean to the mortgage marketplace, the ramifications still need sorting out, and they are anything but simple.
It's the type of deal that lenders always said they wanted, because it recognizes the sovereignty of their role in the origination process, preserving the value of their proprietary automated underwriting systems. And the agreement is important because it incorporates ...