What automated checks compare when a borrower uploads documents, and why a person still makes the call on anything they flag.
When a borrower uploads a bank statement or an ID, someone has to compare it against the application. Automated checks do the first pass of that comparison so the underwriter starts from a list of questions rather than a stack of PDFs.
What gets compared
- Names. Does the name on the statement match the borrower or the borrowing entity on the file?
- Dates. Is the statement recent enough, and do the periods line up with what was requested?
- Figures. Do the balances and deposits roughly support what the application says?
What a flag means
A flag is not a decision. It means two things on the file disagree and a person should look. Often the explanation is ordinary: a married name, an entity with a slightly different spelling, a statement from the wrong month.
Why it runs on every file
Checks that only run on files someone already finds suspicious miss the ones nobody suspected. Running the same comparison on every upload keeps the review consistent and leaves a record of what was checked and when.
What it does not replace
Automated checks do not approve loans and do not replace an underwriter's judgment. They save the time spent on comparisons a machine can do, so the person reviewing the file can spend it on the questions that need a person.
