• What's at Stake: Potentially efficiencies from AI use. The lender didn't confirm whether the expansion of its AI use will result in layoffs.
• Expert Quote: "No two post-closing teams work the same way, even within the same lender, which is why we built Foundation to adapt dynamically to each team and measure its success on the quality and volume of work it helps each person to complete," — Linus Petrén, CEO of Novaprime.
• Supporting Data: More than 80% of government insuring tasks performed during LoanDepot's initial pilot program with Novaprime were automated.Overview bullets generated by AI with editorial review.

LoanDepot is increasing its artificial intelligence usage, rolling out a new operating system it expects to improve the speed of loan delivery and the quality of loans while reducing the cost.

The mortgage lender is expanding its partnership with Novaprime, an AI-powered fintech, to include the company's Foundation agentic operating system across post-closing following a pilot that began earlier this year, the companies announced in a press release Monday.

The lender didn't confirm whether this will result in layoffs. But Senior Vice President Thomas Hutchinson said in an email to National Mortgage News, "We believe pairing the technology with our people gives us the best of both worlds, improving efficiency while preserving the human connection and level of service our customers value."

LoanDepot's pilot with Novaprime automated more than 80% of tasks and allowed the company to complete more loans each day. The lender is now rolling out Foundation across closing disclosure reconciliation, defect remediation and loan delivery, hoping to reduce the cost per loan and increase capacity. Early testing has demonstrated meaningful productivity gains, LoanDepot said.

This will enable employees to apply their expertise to higher-level tasks, such as investigating and solving issues identified by the system, Hutchinson said.

"Government insuring was a well-defined place to start. It's deadline-driven, highly repetitive work, and most of the effort goes into confirming a file is complete," Hutchinson said in the release. "The Novaprime team has delivered a robust solution that's already had a positive impact on our government insuring turn times and we look forward to extending the partnership by deploying Foundation across several of our post-closing teams."

The lender will continue to explore additional areas that could benefit from automated solutions as the partnership evolves, Hutchinson said.

Foundation connects the teams that handle a loan after it closes. The system was designed to  analyze, validate and track defects and remediation automatically, helping mortgage professionals complete loans at a higher rate. Foundation works alongside the lender's existing systems and adapts to the needs of each organization and individual team, according to the release.

"No two post-closing teams work the same way, even within the same lender, which is why we built Foundation to adapt dynamically to each team and measure its success on the quality and volume of work it helps each person to complete," said Linus Petrén, CEO and founder of Novaprime, in the release. 

The system is paired with Novaprime's Loan Intelligence product, which aims to measure quality and output over time across every loan, team and task in real time. They are built not only to enable mortgage professionals to become more efficient and improve the quality of loans but also to maintain an audit trail behind every decision, according to the release.