Loss Mitigation Automation Digital Worker
Deploys an 8-agent system that processes complete loss mitigation cases in under 20 seconds. Uses OCR and NLP for document extraction, ML models for risk scoring, automated program eligibility matching, NPV-optimized modification recommendations, and comprehensive compliance validation against CFPB, RESPA, and ECOA requirements.
Problem Statement
The challenge addressed
Solution Architecture
AI orchestration approach
AI Agents
Specialized autonomous agents working in coordination
Orchestrator Agent
Loss mitigation cases require coordinated analysis across documents, income, risk, eligibility, and compliance with proper sequencing and error handling.
Core Logic
Manages the 8-phase workflow from case initialization through output generation. Coordinates parallel processing threads, routes tasks to specialized agents, maintains state across phases, and handles errors with recovery strategies. Tracks trace IDs for complete audit visibility.
Document Processor Agent
Borrowers submit paystubs, bank statements, tax returns, and hardship letters in various formats that must be extracted, classified, and validated.
Core Logic
Applies OCR to extract text from uploaded documents, runs NER models to identify income values, employer information, and dates. Validates document authenticity using fraud detection patterns and cross-references extracted values with application data. Processes paystubs with 94% confidence on income extraction.
Income Analyzer Agent
Accurate income assessment requires verification across multiple sources, stability analysis, and proper DTI calculation for modification eligibility.
Core Logic
Calculates gross-to-net income ratios, analyzes employment tenure and income trends over 24 months, computes debt-to-income ratios using verified expenses. Integrates with Work Number for employment verification and determines income sustainability scores based on industry factors.
Risk Assessor Agent
Servicers need accurate probability of default and expected loss calculations to make economically sound modification decisions.
Core Logic
Runs logistic regression model (v3.2.1) for probability of default prediction using behavioral scorecards. Calculates loss given default based on LTV and property factors, generates composite risk scores from 12 weighted factors including payment history, income stability, and hardship type.
Eligibility Checker Agent
Cases must be evaluated against multiple modification programs (HAMP, FHA-HAMP, Flex-Mod) with different requirements and investor-specific rules.
Core Logic
Evaluates cases against Fannie Mae, FHA, and proprietary modification guidelines using investor-specific rule engines. Performs waterfall analysis across 8+ programs to identify all eligible options with qualification scores. Documents met and unmet requirements with specific disqualifiers.
Recommendation Engine Agent
Optimal modification terms require NPV analysis comparing modification vs foreclosure scenarios while achieving target affordability ratios.
Core Logic
Computes NPV of modification versus foreclosure scenarios, optimizes payment reduction to achieve 31% housing ratio target, generates term extension and rate reduction combinations. Calculates expected investor return and breakeven periods. Provides alternative options (forbearance, repayment plan) with confidence scores.
Compliance Validator Agent
Loss mitigation decisions must comply with CFPB Reg X timelines, fair lending requirements, RESPA, and state-specific regulations.
Core Logic
Verifies CFPB loss mitigation timeline requirements (30-day response), performs fair lending analysis across demographic factors to prevent disparate impact. Checks RESPA complete application requirements, validates investor guidelines, and ensures state-specific notices (e.g., CA HBR) are triggered. Generates audit trail entries for regulatory examination.
Communication Agent
Borrowers need timely, clear communications about decisions with proper disclosures and next steps in their preferred language.
Core Logic
Generates decision letters using templated content with case-specific terms. Drafts borrower emails for status updates, produces adverse action notices when required. Supports multi-language output and prepares specialist review summaries for escalated cases.
Worker Overview
Technical specifications, architecture, and interface preview
System Overview
Technical documentation
Tech Stack
4 technologies
Architecture Diagram
System flow visualization