AI Debt-to-Income Analysis
The Problem
“Slow, inconsistent debt-to-income checks delay closings”
Organizations face these key challenges:
1
Manual DTI calculation is slow and error-prone, especially with variable income, self-employment, and rental-property cash flows common in real estate buyers and investors
2
Late discovery of undisclosed or miscategorized debts triggers underwriting conditions, appraisal/lock extension costs, and closing delays that frustrate agents, borrowers, and sellers
3
Inconsistent interpretation of program rules (e.g., student loan treatment, bonus averaging, rental income add-backs) creates compliance and repurchase risk and drives rework between processors and underwriters
Impact When Solved
20–35% reduction in processing effort through automated income/debt extraction and rule-based DTI computation15–30% fewer underwriting conditions tied to income and liabilities by identifying issues at pre-qual or early underwriting