AZP Insurance Specialists announced that it has awarded its highest certification to Gateless Smart Underwrite, an artificial intelligence-driven mortgage underwriting platform.
Gateless is the first technology provider certified under AZP’s AI Mortgage Technology Certification framework and received the Platinum designation, the highest of four certification levels, AZP said.
The framework evaluates AI and advanced technology providers serving the mortgage industry, with a focus on governance, controls, auditability, operational maturity and risk management. For qualifying technologies and transactions, it also provides a pathway to separately underwritten insurance-backed protection for certain representation-and-warranty risks, including covered repurchase losses.
AZP said its predecessor organizations have placed rep-and-warranty insurance on more than 5 million mortgages representing more than $2 trillion in principal balance. The insurance-backed protection is provided through a Lloyd’s of London policy underwritten by Munich Re, subject to underwriting requirements and policy terms.
Gateless’ Platinum certification also reflects the performance of more than 230,000 loans manufactured and sold by lenders using Smart Underwrite without a reported claim, according to AZP.
“From the beginning, we’ve believed AI underwriting had to earn the confidence of lenders through measurable performance, strong controls and transparency,” Rick Lang, president of Gateless, said in a statement.
As AI becomes more widely used in mortgage underwriting and loan manufacturing, lenders and other mortgage market participants are increasingly focused on governance, accountability and financial risk in addition to the technology’s capabilities, AZP said.
Gateless, founded in 2020, combines mortgage-= industry expertise with expert systems, robotic process automation, machine learning and vision-based AI to automate mortgage processes.
AZP Insurance Specialists provides insurance, risk management and technology certification services to mortgage lenders, investors, technology providers and other industry participants.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.
