API marketplace Staircase announced the launch of MI Underwriting, a new tool that gives private mortgage insurers the ability to automate the underwriting of non-delegated mortgage insurance (MI) policies for lenders instantly and at half the typical cost.
In the delegated channel, the lender underwrites the loan for MI and then submits it to the mortgage insurer.
With non-delegated MI, lenders typically submit a full package of information from the borrower—including pay stubs and tax returns—to the insurer who then processes the information manually to make an underwriting decision according to its guidelines.
The tool fully automates the non-delegated underwriting process by pulling documents and data directly from lenders to allow insurers to make instant policy decisions.
It includes manual quality control where needed but also enables mortgage insurers to route exceptions to their existing internal processes. The result is mortgage insurers can become 100% fully non-delegated which provides them with higher margins than delegated underwriting, according to Staircase.
MI Underwriting comes with built-in quality control reviews and costs just $50 per loan file or roughly half the cost of the current industry average.