When it comes to mortgage underwriting, income calculations are rarely as straightforward as they should be. Variable earnings, job changes, overlapping pay sources—these are the scenarios that keep underwriters stuck in spreadsheets instead of moving files forward. That’s where mortgage AI technology like Prism comes in, automating the heavy lifting so lenders can approve loans faster and more accurately.
The Problem: Complex Income Profiles Slow Everything Down
Not every borrower has a neat stack of pay stubs and a single W2. Some have:
· Variable income that changes from paycheck to paycheck
· Recent employment changes that require verification of both current and prior income
· Bonuses, commissions, or residual pay from a job they’ve already left
Traditionally, these cases require hours of manual review to ensure accuracy and compliance. Each income source must be documented, averaged according to agency guidelines, and carefully verified for continuity. The process can slow down closing timelines and frustrate both lenders and borrowers.
How Prism Uses Mortgage AI to Automate Income Calculations
Prism Income is designed for exactly these kinds of scenarios. By combining OCR technology with advanced mortgage AI rulesets, Prism transforms income documents into verified, guideline-compliant numbers in minutes.
Step 1: Document Upload
Borrowers submit their pay stubs, W2s, and WVOEs—whether from current or previous employers.
Step 2: OCR + AI Analysis
Prism scans the documents, extracts the relevant data, and applies agency guidelines to:
· Calculate average monthly income for variable earners
· Identify employment changes and verify continuity and stability
· Link residual bonuses, commissions, and other income from previous jobs to the borrower’s profile
Step 3: Human-in-the-Loop Review
Underwriters review only the flagged exceptions—like gaps in employment or overlapping income—rather than manually verifying every number.
Step 4: Direct URLA Sync
Once reviewed, Prism pushes verified income data straight into the URLA in Encompass®, eliminating double data entry.
The Results: Faster, More Accurate Loan Files
Implementing Prism means lenders see measurable improvements right away:
· Speed – Complex income calculations are completed in minutes, not hours.
· Accuracy – Automated guideline checks reduce costly errors and repurchase risk.
· Efficiency – Underwriters focus on decision-making, not data entry.
· Borrower Experience – Faster approvals and fewer document requests keep customers happy.
Why Mortgage AI Matters for Lenders
The rise of mortgage AI isn’t about replacing people—it’s about eliminating bottlenecks that prevent them from doing their best work. Prism acts as a trusted digital assistant, performing complex calculations instantly, so underwriters can apply their expertise where it’s needed most.
With today’s competitive market and shrinking margins, adopting mortgage AI solutions like Prism is no longer optional—it’s a competitive advantage.
Ready to see Prism in action? Schedule a consultation and find out how mortgage AI can simplify even your toughest income scenarios.
