Insurance Corp., HNC Software Inc., and Foster Ousley Conley released an automated underwriting system for mortgage lenders. The production release version, called Automated Quality Control Artificial Intelligence Underwriting System, or Aquarius, was tested with a group of mortgage lenders over the last nine months.
The software can predict how well individual loans are likely to perform over time. It was developed by Foster Ousley Conley and HNC Software, San Diego.
Milwaukee based MGIC will market and distribute it.
Based on an open systems platform, it can integrate models and rule bases from vendors, agencies, or users. It can perform both compliance checking and risk rating by combining rulebased and neural net decision technologies. Rule-based technology conducts loan analysis through a series of logical criteria and tests that generally match compliance checking activity. Neural net technology is a more powerful statisfical technology suited for complex decisions, such as mortgage risk rating. Neural net technologies analyze large sets of decision factors, evaluate multiple factors in aggregate, adjust for offsets or compensating factors, and discern subtle patterns in mortgage risk.
Weyerhaeuser Mortgage Co., based in Woodland Hills, Calif., is currently installing Aquarius in its branches.
