Advances in AI-driven underwriting could transform the role of mortgage underwriters, with technology now capable of completing around 70% of traditional tasks, according to new analysis from MQube.

The mortgage technology firm examined almost 1,000 complex mortgage cases that had previously been assessed by experienced human underwriters.

Using the same information supplied to those underwriters, MQube’s AI technology re-underwrote the cases and reached the same outcome in 70% of instances.

The findings suggest that automation could take on a significant share of the routine work currently undertaken by underwriters, potentially reshaping the role toward oversight and validation rather than manual case processing.

Stuart Cheetham, chief executive of MQube, said: “Mortgage underwriting, long defined by manual review of income, credit history, affordability, property details and risk factors is moving from human execution to machine intelligence.

“As AI assumes the bulk of case processing, the role of the underwriter will fundamentally evolve from processing applications line by line to overseeing, validating and governing AI-driven decisions.

“What our analysis shows is that much of the work done by a human underwriter can now be done faster and accurately by AI.

“This is about improving speed and consistency and importantly not removing human judgement. With average underwriting times typically around four hours per case, reducing that to approximately 25 minutes using AI-driven underwriting represents a meaningful shift for lenders, brokers and borrowers alike.

“As this becomes standard practice, the impact on the industry could be game changing.”

The analysis forms part of the second phase of MQube’s wider digital transformation programme. The company said the first phase focused on the launch of its One Day Mortgage, while the latest development centres on the introduction of AI-powered underwriting capabilities.

The new service will operate through MQube’s mortgage origination platform, Origo, which is used by a number of UK building societies and lenders. The firm said the technology is intended to streamline underwriting processes while improving speed and efficiency across the mortgage journey.

MQube argues that, as AI becomes more widely adopted within lending operations, the human role within underwriting teams is likely to evolve toward monitoring outcomes and ensuring appropriate governance of automated decisions.