While lending volumes may have fallen from the heights of a few years ago, a mortgage fintech is rolling in, looking to tap into the opportunity presented by the surge of generative artificial intelligence.

Formed in 2022, Tidalwave plans to employ AI that provides real-time answers for loan underwriting that will lead to a more equitable origination process. Tidalwave was co-founded by longtime technology executive Diane Yu, who also heads the firm as CEO.  

Tidalwave rolled out its first product this year, an AI-powered underwriting engine called Solo. With integrations to Fannie Mae and Freddie Mac automated underwriting systems within the pre-approval stage announced this summer, Solo has already attracted two beta clients. The company hopes to build Solo, which Yu described as a copilot to serve both lenders and borrowers, into a tool that will eventually serve all parties through closing. 

With a background in digital advertising technology, Yu was an engineer at Doubleclick, which was eventually purchased by Google. Several years later, she co-founded and served as chief technology officer at advertising startup Freewheel and continued there following its acquisition by Comcast in 2014.

Pivoting to mortgage banking. Yu took on the chief technology officer role at Better in 2021 before she set out to create Tidalwave.   

In a recent conversation with National Mortgage News, Yu talked about the path that brought her to the mortgage industry and her decision to start a new business in the current market environment, while also discussing the vast undertaking of introducing a new product and expectations for the future of AI in loan underwriting. 

Portions of the interview, edited for length and clarity, follow.