How AI Can Be Used to Improve CRE Loan Underwriting

Recent technological advancements in AI-powered underwriting systems are changing the game for the financial industry. From faster decisions to greater accuracy, this revolutionary technology is now taking center stage in commercial real estate loan underwriting.

AI uses complex algorithms to analyze data faster and more accurately manual process allows , driving quicker and more informed decisions in the loan approval process. This new technology is increasingly applied for various use cases in commercial loan underwriting—with successful case studies in the digitization of the broader financial and insurance industry.

According to the NTT DATA study, over 80% of financial institutions and insurance companies believe artificial intelligence is necessary for success in the digital transformation of such a competitive market.

With AI-driven underwriting capabilities, learn how to make smarter and more profitable decisions on your while staying one step ahead of the competition. Discover the potential benefits it can bring to lenders and borrowers alike and the obstacles that still need to be overcome.

Let’s unlock the power of AI in CRE underwriting.

What is AI in loan underwriting?

Artificial intelligence is shaking up the CRE industry—giving lenders and borrowers access to faster, more accurate decision-making and tailored loan offerings. This new technology empowers loan underwriters to craft smarter deals while reducing processing time significantly—hours instead of weeks.

AI in loan underwriting uses artificial intelligence technologies to analyze and assess applicants’ creditworthiness quickly. This process helps lenders make faster and more accurate decisions to approve or reject applications.

AI can identify and analyze patterns in large datasets that would be too complex for manual underwriting, allowing lenders to make better-informed decisions considering many factors.

AI also allows lenders to offer commercial real estate loans with more flexible terms tailored to different risk profiles, helping them create better customer experiences through custom offerings for each borrower.

Benefits of using AI in the underwriting process

Let’s explore the potential benefits of using AI in loan underwriting.


By automating the tedious, time-consuming tasks of data entry and document processing, AI can help lighten the load for underwriters and increase efficiency. AI systems can quickly analyze and assess large data sources and sets using algorithms, giving lenders better insights into applicants’ creditworthiness.

Using AI, lenders can save time on routine tasks and focus on more strategic and value-adding activities.

AI underwriting can also help reduce the burden of compliance requirements by automating certain processes, such as data verification or document review, allowing lenders to stay compliant with regulations efficiently.

With an automated system, underwriters can process loans much more efficiently and make better decisions upfront in the origination process. 

Data analysis

Lenders searching for ways to stay ahead of the competition can look to AI for help. By taking advantage of predictive analytics and machine learning, AI can deliver insights into market trends and data, giving them a leg up in making the best decisions possible.

AI can also analyze large amounts of data from various sources in seconds. Analysts can now make informed decisions faster and more accurately than ever before tapping into big data. With AI-powered solutions, lenders can save time and money on document processing while eliminating manual data entry and errors.

Risk assessment

AI can make the risk assessment part of the underwriting process easier and more accurate. By leveraging AI algorithms to analyze massive amounts of data, lenders can gain better insights into economic trends and consumer behavior.

AI-driven risk management reduces the chances of defaulting on loans and increases the speed of processing applications.

With AI technology’s ability to analyze data quickly and spot upcoming trends, lenders can make more data-driven decisions about loan applicants and their likelihood of repayment.

Document management

AI-powered document management tools make the mortgage underwriting process more efficient and accurate. Mortgage advisors can quickly store, manage and access customer information and loan documents without manually entering data or scanning documents. This saves significant time while eliminating potential mistakes or data entry errors that could lead to fraud.

AI also helps automate routine tasks such as document scanning and data entry, ensuring all customer information is accurate and up-to-date.

Increased operational efficiency

AI can greatly increase efficiency by helping mortgage companies reduce overhead costs and streamline the underwriting process. Using AI tools, lenders can automate the underwriting process from document review to decision-making, resulting in quicker loan approvals without compromising accuracy or quality control.

Additionally, AI helps streamline manual processes, freeing up time and resources for more strategic tasks.

By leveraging past transaction data and combining it with predictive algorithms, AI can uncover trends and insights that can help improve decision-making.

AI can assist in this analysis by providing detailed borrower insights, enabling lenders to forecast loan performance and assess risk accurately. This predictive capability can help lenders set better interest rates, design attractive products that meet customer needs, expedite processing times, and reduce fraud losses.

Blooma, your CRE loan automation solution

Blooma revolutionizes the traditional loan underwriting process, making it simpler and faster. Using AI and OCR technology, Blooma’s underwriting solution can automate much of the manual work previously associated with pre-flight and portfolio monitoring, drastically reducing processing times while still ensuring accuracy and quality control.

With Blooma, customers can benefit from automated document review, validation, and intelligent decision-making capabilities. The platform’s predictive algorithms help lenders identify patterns in data that can be used to improve customer experience, reduce risk, and offer better interest rates on loans.

Unlock the power of AI for improved commercial loan underwriting and increased profitability. Simplify your workflow using Blooma’s underwriting AI capabilities. Book a demo today!

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