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47-Second Loan Décisions. Underwriting in Minutes. How AI is Revolutionizing Turnaround Time in Mortgage Lending

TORONTO–While AI has been deployed across a host of back office functions, on the consumer-facing side its promise is increasingly being seen in mortgage lending, where lenders are promising mortgage approval decisions in as little as 47 seconds, reporting that up to a third of inquiries are now being handled by chatbots, and slashing underwriting time to just minutes.

Toronto-based TD Bank Group said it has also deployed its first agentic artificial intelligence system in mortgage lending, reducing the time required to prepare applications for underwriting from an average of roughly 15 hours to less than three minutes.

According to a statement from TD Bank, the new AI model automates mortgage pre-adjudication — the process that occurs before a human underwriter reviews an application.

The bank said the system classifies borrower documents, extracts and validates financial information, calculates income, performs policy and consent checks, identifies discrepancies and generates a summary memo for underwriters.

Developed Internally

TD said the model was developed by Layer 6 AI, the bank’s internal artificial intelligence research and development center, in collaboration with technology, data, lending and risk management teams.

The bank said the initiative is intended to accelerate decision-making during the homebuying process while maintaining human oversight.

Mohit Veoli, TD’s senior vice president of real estate secured lending, said in the statement that the technology is designed to provide “confident decisions earlier in the homebuying process.”

‘Hybrid Future’

Luke Gee, TD’s chief analytics and AI officer, said the bank is pursuing what he described as “a hybrid future where our colleagues and AI work together to help our clients get to a ‘yes’ faster.”

TD, which said it serves 28.1 million customers and ranks as North America’s sixth-largest bank by assets, described the mortgage launch as the first implementation of a broader agentic AI strategy.

According to the bank, it has mapped the entire mortgage and home equity line of credit process — from document collection through loan funding — and plans to introduce agentic AI capabilities across additional stages of the lending lifecycle.

TD also said it is evaluating similar applications across other business lines.

‘Hyper-Fast Closings’

Meanwhile, Palantir Technologies, the AI company that is backed by investor Peter Thiel, among others, has become the latest to enter into a partnership aimed at AI-backed mortgage lending decisions.

RocketClose is also touting hyper-fast closings.

Palantir said it is partnering with Moder  to develop an artificial intelligence-powered mortgage operations platform, with Freedom Mortgage serving as the initial pilot customer.

The companies said the platform will combine Palantir’s data and AI capabilities with Moder’s mortgage industry expertise to streamline lending operations, with the stated goals of improving affordability, reducing borrowing costs and expanding access to homeownership.

The system is built on Palantir’s Ontology technology, which the companies said enables an “agentic AI” framework capable of integrating with existing systems of record. The platform translates lending guidelines and operational policies into configurable, testable and auditable rules, allowing mortgage teams to execute processes with greater speed, accuracy and scalability, the companies said. 

The Early Developments

Early deployments at Freedom Mortgage have already supported several operational functions, the companies said, improving processing times and accuracy for both staff and borrowers, the companies reported. 

Michael Middleman, chairman of Moder, said in a statement the collaboration has the potential to reshape mortgage operations, while CEO Erik Anderson said the combined capabilities are already producing measurable improvements in efficiency and the customer experience.

47-Second Mortgage

As the CU Daily reported here earlier, numerous AI-backed initiatives in mortgage lending have been announced, with the mortgage platform Better saying it has partnered with OpenAI to launch an app within ChatGPT that the companies said will dramatically reduce the time it takes to underwrite a mortgage or home equity loan to as little as 47 seconds. 

The app takes Better’s mortgage engine and combines it with OpenAI’s models to speed up the underwriting process for loan officers working at banks, mortgage brokers and fintech firms, Better CEO Vishal Garg told CNBC in an interview.

In addition, earlier, in 2025, Fannie Mae partnered with Palantir on fraud detection initiatives, while Better previously used Palantir technology to launch its Tinman Marketplace in 2022.


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