Essay Example on The art of evaluating commercial real estate Loan








The art of evaluating commercial real estate loan underwriting automation software Like every other industry the modern commercial real estate industry operates on human interaction and relationships Consumers interact with realtors agents brokers lenders and similar service providers followed by labour intensive negotiations and financial transactions Look at it from a technical perspective and you will find that in spite of being comprehensively organized the industry is evidently subjected to operational refinement and disruption in times to come With banks and financial institutions increasingly launching chatbots the said disruption seems to be done by Artificial Intelligence and self learning software The prime effect of these changes will be agility and efficiency of operations Subsequently increased efficiency means increased transactions and thereby increased revenue for both lenders and brokers Scopes and trends of automation in commercial real estate industry

Therefore in order to increase efficiency the CRE professionals are soliciting technology to build solutions towards automation pathway Seemingly many areas of CRE are laden with inconsistent manual operations follow ups data management documenting and much more as in they are highly non automatic today There lies a tremendous scope for automation and technology implementation Basically the idea is to reduce production time The prevailing manual operations of managing client information necessary calculations financial transactions details contracting are data oriented daunting tasks Loan underwriting is one of those manually performed time consuming job done by brokers and lenders Loan underwriting then now the future The real estate lending market is ever growing and thence crucial loan underwriting operations will remain Currently the way real estate industry service providers perform loan underwriting is intermittent For a human eye and brain it would take considerably longer to scan the financial documents and take out the particulars that are essential for the deal Loan evaluation mortgage review and document processing consumes time the most Simultaneously they require ultimate precision and expertise 

And this is where the disruption begins Modern technology allows the clean cut scanning of the paper documents extraction of the data and even analysis that is automation of the entire process that the agents have been repeatedly following What automated loan underwriting looks like Introduction of machine learning algorithms and AI are making the repeated process automated everywhere be it manufacturing e commerce banking or anything Modern day CRE is no exception In loan underwriting segment the automation is taking over manual processing and An eagle eye How to evaluate automated CRE loan underwriting software For CRE operations there is plenty of software available with scores of different features of utilities apart from just loan underwriting Then instead of making a random choice you should resort to some best practices that help you with evaluation and thereby selection Listed below are some check points you can keep in mind while evaluating CRE loan underwriting software Conduct a thorough research and shortlist vendors that offer such solution Document and validate your requirements and flow of operations Compare the shortlisted system features with what you need and rank them accordingly Peer reviews Seek to find out what other users think of the solution Perform a functional performance test in which you ll review o Setup simplicity and user friendliness of UI o Document scanning and accurate recognition of inserted data on Optimum transaction efficiency o Quick and precise calculations everything in a standard format This is a must to Ensure no error or data gap o Multi user access to update the same file o Smart alerts for missing documents o Real time notifications and updates o Privacy and data security After the functionality test evaluate it for scalability Check if the system is able to expand in case of your increased requirements of future Additionally it should integrate with the existing peripheral software you need to use 

The solution should be able to assess the borrower's creditworthiness from the analysis of scanned data Lastly figure out the business value you can achieve from it The expected ROI will show you the financial worth of the solution you intend to implement All in all you need to check how easy it is to upload extract download of mortgage loan data Based on this evaluation checklist whichever solution scores highest in your list should be your choice About Clik ai Clik ai is a digital platform powered by Artificial Intelligence and developed especially for commercial real estate brokers and lenders The developers are based in Vancouver Canada with their engineering powerhouse located in India In essence Click deftly automates the prevailing manual tasks of underwriting in loans or any sort of lending transaction belonging to CRE mortgage industry Clik is built to facilitate and automate all inclusive underwriting duties thus saving the agents valuable time Evidently this solution that automates recurring tasks of underwriting is bound to make the processes accurate and relatively faster while eliminating manual efforts all the way Clik Technologies Inc who are the firsts to introduce machine learning and automation in loan underwriting recently appeared at 4 in the list of top 25 commercial real estate tech companies to watch for in 2018

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