Afterword: from this revolution to the next
Smart machines in education
Automating the underwriting of insurance applications
IAAI'05 Proceedings of the 17th conference on Innovative applications of artificial intelligence - Volume 3
Custom DU®: a web based business user driven automated underwriting system
IAAI'07 Proceedings of the 19th national conference on Innovative applications of artificial intelligence - Volume 2
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Fannie Mae, the nation's largest source of conventional mortgage funds, has made a commitment to use technology to improve the efficiency of processing a loan by reducing the time, paperwork and cost associated with loan origination. The Desktop Underwriter (DU) system which was developed as a result of this commitment, is an automated underwriting expert system that applies both heuristics and statistics to the problem. The system supports both the wholesale and retail mortgage environments and is built to reason and underwrite loans with incomplete, unverified and conflicting data. The system generates a credit recommendation based on the loan's conformity to credit standards and an eligibility recommendation based on the loan's conformity to eligibility requirements. DU is already having a major impact on the mortgage industry. The system helps standardize how the Fannie Mae underwriting guidelines are interpreted, reduces discrimination by removing subjective reasoning from the decision process and reduces the cost of manual underwriting for both lenders and Fannie Mae. DU was first released into production in June of 1995 and there have been at least two major releases each year. The system's use and importance both to Fannie Mae and the mortgage industry have been growing steadily. DU is well positioned to lead the way in meeting Fannie Mae's goal of reducing the cost of making a mortgage by $1,000 and reducing the processing time from eight weeks to five days.