Digital origination tech provider Blend is developing AI tools like Autopilot to help Fis shorten loan cycle times and help them grow operations without adding employees. 

The company’s AI tool, Autopilot, launched in early March, is cutting mortgage cycle times by roughly 30% and lifting borrower conversion rates by 1.5 to 2 times, Head of Product Srini Venkatramani told FinAi News.

San Francisco-based Blend processes roughly one in six U.S. mortgages, and Venkatramani said the tool cuts the labor-heavy cost of originating a loan. 

“Lenders spend about $11,000 to originate a single mortgage,” he said, of which 90% is the cost tied to loan officers, processors, underwriters and closers verifying the same data and documents. 

Autopilot can:  

• Verify whether the data and documents are real and if additional documents are needed; 

• Make sure that the calculations that are needed are correct in terms of income, credit, assets and creditworthiness of the individual; and 

• Give applicants and loan officers a clear view of where the application is in the process. 

Autopilot operates in both the front and back office, Venkatramani said. Borrowers interact with it through follow-up prompts and a chat — for example, a request for a letter of explanation on a large deposit — while loan processors and underwriters receive a pre-underwriting report validated against agency guidelines. 

Mortgage origination cycle times that ran about 30 days on Blend pre-Autopilot have dropped to around 21 days, Venkatramani said. 

The tool was built in house, he said, adding that the company uses Claude and Gemini for development and internal usage. 

Adoption, bottom line 

Of Blend’s roughly 300 financial institution customers, 25% to 30% have tested Autopilot and moved it into integration process within about 12 weeks of launch, Venkatramani said. 

Blend is targeting 75% adoption within 18 months, he said. The tool is configurable, letting customers decide whether it runs background analysis, interacts with borrowers or sends follow-ups. 

Venkatramani framed the gains from Autopilot around capacity: An underwriter who handles 10 files a week could do 20, letting lenders scale volume without adding headcount and potentially reducing reliance on outsourced underwriting services. 

It is too early to say how much Autopilot can reduce the cost of origination, he said. 

Some FIs that use Blend’s origination platforms are: 

• Wells Fargo; 

• PennyMac; 

• Zions Bank; and 

• Citizens. 

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