Underwriting service provider Friday Harbor integrated Fannie Mae’s Income Calculator into its AI Originator Assistant tool this month, adding efficiency to Friday Harbor’s AI-driven underwriting. 

Friday Harbor, whose clients include Developer’s Mortgage, NewFed Mortgage and FirstOption Mortgage, uses generative and agentic AI to look at a loan file “from beginning to end,” the company’s Head of Strategic Partnerships Chris Simms told FinAi News.  

Friday Harbor’s AI Originator Assistant tool assesses:

• Appraisals; 

• Income documents; 

• Asset documents; 

• Compliance reviews; and 

• Possible fraud. 

The inclusion of Fannie Mae’s Income Calculator increases accuracy and efficiency for self-employed borrowers, rental owners and business owners calculating income, according to Fannie Mae. It also can offer relief from reps and warrants on income calculations. 

“If you fulfill certain requirements in the underwriting and originating process, Fannie will grant you relief from risk of repurchasing that loan because you didn’t do something correctly,” Simms said. 

The Income Calculator adds automation to underwriting without replacing an underwriter or processor, Simms said, noting that the efficiency it brings increases the number of deals that can be processed, Simms said. 

Upping underwriting volume

Even before the Fannie Mae integration, Friday Harbor’s clients reported that the AI provider was improving their loan officers’ productivity by two to three times, Simms said.  

A Friday Harbor spokesperson said that with the Fannie Mae addition, “we really do think that 3X to 4X [productivity] is more accurate.”  

For example, on average, an underwriter touches a file around four times, and a processor touches the file six to eight times, Simms said. In terms of volume, the time spent “really limits them.” 

Friday Harbor has been in market for 18 months and has roughly a dozen clients use the Fannie Mae tool, Simms said, without disclosing which clients are using the new feature. 

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