Friday Harbor announced the launch of a retooled condition engine that automatically generates actionable underwriting conditions based on borrower source documents and loan guidelines.
Unlike traditional “stare and compare” tools that flag generic issues, Friday Harbor’s condition engine reads the full context of the loan file and outputs conditions that are immediately usable by loan officers, processors and borrowers. Each condition is written in plain English, color-coded by urgency and supported by documentation that gives underwriters a ready-made audit trail.
“In most mortgage workflows today, identifying conditions is a game of hot potato between departments. Friday Harbor solves that by delivering conditions in real time that are actionable at the beginning of the borrower journey, not just in the underwriting queue,” Friday Harbor co-founder and CEO Theo Ellis said in a release. “We’re empowering originators to spot and solve issues earlier, which leads to cleaner files, faster closings and dramatically lower costs to originate.”
The new engine doesn’t just catch obvious clerical gaps. It’s also trained to spot nuanced issues such as red flags for occupancy and other types of fraud; unexplained large deposits; missing documentation; and undisclosed liabilities.
For each flagged issue, Friday Harbor provides a proposed resolution path and direct links to applicable guidelines. For junior loan officers, the engine pairs with the platform’s artificial intelligence (AI)-powered Scenario Desk to explain next steps or script borrower communications. For underwriters, it offers full traceability, with source documents and reasoning behind every condition.
Friday Harbor is backed by the AI2 Incubator, a technical incubator born from the Allen Institute for AI in Seattle, and was recently funded by venture firms Abstract Ventures, Mischief and Wischoff Ventures.