Technical Documentation · Credit Underwriting AI V1.1

Full Agentic AI Architecture

Application Ingestion → Spreading → Scoring → Decision → Structuring → Fair Lending. Seven parallel sub-agents. Five peer source tools. Every loan type. Every regulation.

SR 11-7 Model Risk ECOA · Reg B HMDA · CRA CECL Provisioning LangGraph · AutoGen · ReAct SBA SOP 50-10 FIRREA Appraisal nCino · Encompass · Blend

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Key Mental Model — Credit Underwriting Context

The Agent operates as a senior credit analyst working in parallel across the entire loan pipeline — not replacing credit judgment, but eliminating the 70–80% of underwriting time consumed by data gathering, spreading, and document assembly. It runs four concurrent intelligence streams: Financial Analysis (spreading, ratio analysis, DSCR, cash flow modeling), Risk Assessment (credit scoring, collateral valuation, industry risk, concentration), Structuring Intelligence (covenant design, pricing, tenor, amortization), and Compliance & Fair Lending (ECOA, Reg B adverse action, HMDA, CRA, CECL provisioning). Target: 70%+ consumer/SBA auto-decisioned · CRE/C&I underwriting 3 weeks → 4 days · Zero undetected fair lending disparities.

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Application Ingestion — Multi-Channel Credit Request

Credit Application Ingestion — Multi-Channel, Multi-Product

Online · Branch · Broker/Correspondent · RM-Originated · Renewal · Portfolio Monitoring · Secondary Market

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Credit requests arrive across seven channels with dramatically different data completeness and document sets. Digital consumer applications arrive structured with bureau pull permission — agent initiates bureau pull, income verification (Finicity/Plaid), and employment check immediately on submission. Commercial applications arrive with incomplete financial packages — agent identifies missing documents, sends automated information requests, and begins spreading available financials immediately. Broker/correspondent submissions arrive via LOS API (Encompass, Blend, OpenClose) — agent validates eligibility, runs initial AUS findings, and flags overlay policy exceptions. Portfolio monitoring triggers — covenant breach detected, financial statement past due, property inspection due, maturity approaching — initiate automated renewal or remediation workflow. All submissions normalized to CAIBots Credit Request Schema v2.

Digital Consumer — Immediate Bureau Pull

Online Business Application Portal

RM-Originated Commercial (LOS)

Broker / Correspondent (API)

Portfolio Monitoring Trigger

Renewal / Modification Request

Secondary Market Acquisition Review

LOS Integration

nCino · Encompass · Blend · OpenClose — All submissions normalized to CAIBots Credit Request Schema v2 before agent pipeline invocation. Application classified → borrower profile bound → loan type determined → complexity tier assigned → workflow instantiated.

↓ application classified · borrower profile bound · loan type determined · workflow instantiated

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Credit Underwriting Agent Orchestrator

7 Parallel Sub-Agent Dispatch · Policy Gate · Fair Lending Monitor

LangGraph · AutoGen · ReAct · Exception Tracking · Credit Committee Packet Assembly

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Seven specialized sub-agents execute in parallel from application receipt. The Orchestrator manages dispatch, resolves conflicts, enforces SLA timing, and maintains the full audit trail for SR 11-7 compliance.

FS · Financial Spreading

Financial Spreading Sub-Agent

Extracts and spreads financial statements (tax returns, CPA, management accounts). Calculates DSCR/FCCR/EBITDA, normalizes add-backs, builds 3-year trend. Global cash flow across all entities.

CS · Credit Scoring

Credit Scoring & Bureau Sub-Agent

Tri-merge bureau pull, FICO 10T/VantageScore, derogatory analysis, D&B Paydex/Experian Intelliscore, UCC search, judgments/liens, OFAC/bankruptcy check.

CV · Collateral

Collateral Valuation Sub-Agent

Orders/reviews appraisal, validates via AVM, calculates LTV/CLTV/DSCR, monitors market comparables for CRE. Environmental clearance, flood zone, FIRREA compliance.

RP · Risk & Policy

Risk & Policy Sub-Agent

Applies credit policy guardrails, calculates risk grade (1–10), flags policy exceptions, assesses industry/concentration risk, stress tests under rate and vacancy scenarios.

ST · Structuring

Structuring & Pricing Sub-Agent

Designs loan structure — tenor, amortization, covenant package, pricing grid (SOFR/Prime spread), guaranty requirements. Benchmarks against peer deals and internal pricing history.

CO · Fair Lending

Fair Lending Sub-Agent (ECOA/HMDA)

Runs HMDA, ECOA, disparate impact screening throughout decisioning. Monitors for prohibited basis proxies. Pricing disparity detection. Reg B adverse action generation. HMDA LAR auto-update.

CL · CECL

CECL / Provisioning Sub-Agent

Calculates expected credit loss, assigns loss given default, probability of default, exposure at default for CECL reserve. PD/LGD/EAD cohort modeling by loan type and vintage.

Orchestration Framework

LangGraph · AutoGen · ReAct · Policy Gate Enforcement — All 7 sub-agents dispatched simultaneously. Orchestrator enforces SLA (3.0s target), resolves inter-agent conflicts, and maintains SR 11-7-compliant audit event log.

↓ application decomposed into parallel underwriting workstreams · loan type routing confirmed

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Loan Type Classification — Underwriting Methodology & Decision Routing

Product Classification · Policy Mapping · Approval Authority · Decision Routing

Consumer · SBA · CRE · C&I · ABL · Syndicated · Leveraged

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Loan type classification determines the entire underwriting methodology and approval authority matrix. Consumer/SBA loans use scorecard-driven decisioning with AUS findings — highest auto-decision eligibility. Commercial Real Estate requires property-level cash flow analysis, appraisal, environmental review — always credit officer review. C&I/ABL requires spreading, industry analysis, borrowing base calculation. Syndicated/Leveraged requires sponsor analysis, credit agreement review, EBITDA addback scrutiny.

Consumer / Retail

FICO-Driven · AUS (DU/LP)

Conforming/Non-QM · HELOC/2nd · Auto · Personal · Credit Card

30–70% auto-decision eligible

Reg B adverse action · HMDA reportable · ECOA monitoring

Instant decisioning via scorecard + policy gate

SBA / Small Business

SBSS Score · SOP 50-10

SBA 7(a) / 504 / Express — SBSS threshold ≥155

Personal financial statement · 3-year P&L spreading

UCC search · SBA eligibility · ETRAN submission

Guaranty percentage calculation · SBA Authorization

Commercial Real Estate

NOI / DSCR · FIRREA Appraisal

NOI/DSCR analysis · AVM validation · Lease roll analysis

Environmental (Phase I/II) · Sponsor guaranty · Stress test

Market study · Construction draw schedule

Always credit officer review — never auto-decision

C&I / ABL / Syndicated

Spreading · Borrowing Base · Credit Agreement

3-year financial spreading · EBITDA normalization

Borrowing base (A/R, inventory) · Field audit program

Leveraged lending guidance (DFAST/OCC) · Syndicate structure

Credit agreement review · Agent bank duties

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AUTO APPROVE

Score above threshold · Policy compliant · No exceptions · Consumer/SBA eligible · Fair lending clear · Instant decision · LOS auto-updated

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ASSISTED REVIEW

Minor exceptions · Borderline risk grade · Agent + credit officer co-review · Full package assembled by Agent · Officer provides final judgment

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COMMITTEE

Above officer authority · Material exceptions · Complex structure · Leveraged · Syndicated · Agent prepares full credit memo + presentation

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DECLINE

Policy ineligible · Risk grade below floor · Fraud flag · Auto-generate Reg B adverse action notice with FCRA reason codes within 30 days

↓ loan type classified · underwriting workstreams dispatched · all five source tools called in parallel

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Source Selection — Five Peer Underwriting Intelligence Tools

Vector RAG · API Calls · SQL · Knowledge Graph · Memory Store

All five tools dispatched in parallel for CRE/C&I/Syndicated · Consumer uses RAG + API + SQL · RAG pipeline lives entirely inside Vector RAG tool box

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▼ Entire RAG Pipeline Lives Inside Vector RAG Tool Box

The 5-step RAG pipeline (Chunking → Embedding → Vector Store → Retriever → Prompt Assembly) executes entirely within the Vector RAG peer tool at Source Selection. All five tools are peers called simultaneously — not sequential.

📄 Vector RAG

Policy & Benchmarks

Chunking

600–900 token chunks · LangChain + LlamaIndex

Embedding

OpenAI text-embedding-3-large · Fine-tuned on credit memos

Vector Store

Pinecone (prod) · pgvector (DR) · Namespaced by loan type

Retriever

MMR hybrid · Top-8 · Cohere reranker · Policy-filtered

Prompt Assembly

LangChain LCEL · Credit memo templates by loan type

Knowledge Base

Credit policy manual · Underwriting guidelines · RMA Annual Statement Studies · OCC/Fed leveraged lending guidance · FIRREA appraisal standards · SBA SOP 50-10 · Reg B/ECOA · HMDA filing instructions · CECL methodology

Returns: policy requirements · industry benchmarks · exception standards · credit memo templates · regulatory guidance

⚡ API Calls

Live Data

Bureau & Credit

Equifax · Experian · TransUnion (tri-merge) · FICO 10T / VantageScore 4.0 · D&B Paydex · Experian Intelliscore Plus · LexisNexis Risk · OFAC · Bankruptcy · UCC lien search

Income / Asset Verification

Finicity (Mastercard) · Plaid · Argyle (payroll) · The Work Number (Equifax) · IRS 4506-C · Bank statement analysis (Ocrolus · Inscribe)

Collateral / Property

CoreLogic AVM · ATTOM · Black Knight · CoStar (CRE) · CBRE/JLL market data · FEMA NFIP flood · EDR environmental · RSMeans construction cost

Business / Industry

D&B · Moody's Analytics CreditView · S&P Capital IQ · IBISWorld · NAICS/SIC benchmarks · Covenant Review monitoring

Returns: bureau reports · income verification · AVM · industry data · LOS status · existing relationship exposure

🗄 SQL

Portfolio Intelligence

Loan Portfolio DB (Snowflake)

Full portfolio by loan type, industry, geography, risk grade · Concentration limits by NAICS/SIC · Existing borrower exposure (single + related) · Maturity ladder · Repricing schedule

Credit History DB

Borrower prior loan history · Payment performance · Modification/forbearance history · Watch list/classified status · Prior charge-offs · Covenant violations

Pricing & Policy Exception DB

Internal pricing history by product/risk grade · SOFR/Prime spread history · All granted exceptions by type/frequency/approver · Exception default rates vs policy-compliant loans

CECL / Reserve DB

Loss development by cohort/vintage/product · PD/LGD/EAD calibration · Qualitative factor history · DFAST adverse scenario outcomes

Returns: portfolio concentrations · borrower history · pricing benchmarks · exception patterns · CECL calibration

◈ Knowledge Graph

Borrower & Risk Network

Borrower Relationship Graph (Neo4j)

Borrower → Guarantor → Related entities → Common ownership chains · Global exposure calculation · Affiliated transaction detection · Cross-default linkage mapping

Collateral Lien Graph

Collateral → UCC filing → Lien priority → Existing creditors · Blanket lien detection · Cross-collateralization chains · PMSI priority analysis

CRE Property Graph

Property → Owner → Tenant → Lease expiry → Market comps · Anchor tenant dependency · Lease roll risk accumulation · Environmental liability chain

Fair Lending Network Graph

Applicant demographics (HMDA proxy) → Decision outcomes → Geographic distribution · Disparate impact path detection · Pricing disparity network · Prohibited basis proxy identification

Returns: global exposure · lien priority · industry peer ratios · CRE market position · fair lending disparity paths

🧠 Memory Store

Credit Intelligence

External / Long-Term (Redis · VectorDB)

Closed loan performance history · Prior credit memo library · Committee decision rationale archive · Exception approval history · Examiner feedback on underwriting quality

In-Context

Current application state · Spreading work in progress · Document completeness checklist · Information request status · Multi-entity global exposure assembly

KV Cache (TTL)

Bureau report (30d) · AVM (30d) · Industry benchmarks (90d) · Portfolio concentration (1hr) · Pricing grid (24hr)

In-Weights

Fine-tuned on institution's credit memos and committee decisions · Risk grade calibration · Covenant construction preferences · Credit culture and risk appetite

Returns: prior loan performance · memo library · exception history · examiner preferences · session state

↓ all underwriting intelligence assembled · financial analysis complete · risk grade calculated · policy checked · fair lending tested

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Credit Analysis Assembly — Complete Underwriting Package

Spreading · Scoring · Structuring · Compliance — Risk Grade & Decision Recommendation

Five parallel assembly tracks · Financial · Credit · Collateral · Policy · Fair Lending

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Five parallel assembly tracks execute simultaneously. Financial Track: 3-year spreads normalized, DSCR/FCCR/EBITDA calculated with adjustments documented, global cash flow assembled across all entities, debt service coverage tested under stress scenarios. Credit Track: tri-merge bureau analyzed, risk grade assigned (1–10 scale), probability of default calculated, peer comparison benchmarked against RMA industry data. Collateral Track: AVM validated against appraisal (within policy tolerance), LTV/CLTV calculated, lien position confirmed, environmental clearance verified. Policy Track: every underwriting criterion checked against credit policy — exceptions identified, severity classified, required approver level determined. Fair Lending Track: ECOA-protected class screening applied, disparate impact test run, pricing disparity flagged — all clear required before decision output.

1.42×

DSCR

Min policy: 1.20×

62%

LTV

Max policy: 75%

Risk Grade

Pass · Watch: 6+

748

FICO Score

Floor: 680

Exceptions

P1 · Officer req'd

3-year spreads complete

Global cash flow assembled

Risk grade assigned (1–10)

Policy exceptions tallied

Collateral adequacy confirmed

Lien priority verified

Fair lending screen: CLEAR

CECL provision calculated

Structure recommendation assembled

↓ complete underwriting package → LLM reasoning · credit memo generation · decision recommendation · structuring terms

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LLM Reasoning — Credit Memo Generation & Loan Structuring

3-Stage Pipeline: Financial Narrative → Decision Recommendation → Complete Credit Package

Credit memo · Term sheet · Covenant package · Adverse action notice · CECL provision memo

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Stage 1 — Financial Narrative: Synthesize spreading results, ratio analysis, and trend into coherent financial narrative — identifying key credit strengths, concerns, and mitigants in the institution's voice. Industry peer benchmarking contextualized against RMA data. Stress scenario analysis quantified and explained. Stage 2 — Decision Recommendation: Formulate a specific, policy-grounded credit recommendation — approve/decline/counter-propose — with risk grade rationale, exception justification, conditions precedent, and required approval authority level. Stage 3 — Complete Package Generation: Produce the full credit deliverable suite — credit memo (institution template, committee-ready), term sheet draft, covenant package (financial maintenance + reporting + negative covenants calibrated to risk grade), Reg B adverse action notice (if applicable), and CECL provision memo.

Azure OpenAI GPT-4o

Primary reasoning model. Credit memo generation, decision narrative, structuring recommendation. Fine-tuned on institution credit memos and committee decisions.

Claude 3.5 Sonnet

Financial spreading and ratio analysis. Complex multi-entity global cash flow narratives. CECL provision memo generation and regulatory compliance documentation.

Llama 3 / Mistral (Open-Weight)

On-premise deployment for institutions requiring data residency. Policy exception analysis, covenant construction, HMDA LAR field population.

In-Weights Credit Memory

Fine-tuned on institution's credit memos and committee decisions — the model carries the institution's credit culture, memo writing style, covenant construction norms, risk appetite calibration, and prior committee feedback as embedded knowledge.

↓ credit memo + decision recommendation + term sheet + covenant package + adverse action → output layer

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Credit Decision Output — Explainable, Auditable, Fair-Lending-Tested

Approval Gates · Booking · Post-Decision Portfolio Intelligence

Auto-decision lane · Credit officer workbench · Committee package · Covenant monitoring · CECL · HMDA LAR

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Outputs routed to three simultaneous destinations. Auto-Decision Lane — eligible consumer and SBA loans: policy compliant, fair lending cleared, no exceptions — approve/decline decision rendered instantly, Reg B notice auto-generated for declines, LOS updated, funding workflow initiated. Credit Officer / Committee Package — complete credit memo in institution template, term sheet draft, covenant package, exception approval memo, risk grade rationale, CECL provision memo — all assembled and ready. Post-Decision — loan agreement covenant monitoring activated, financial statement collection scheduled, HMDA LAR updated, CRA activity recorded, CECL reserve posted.

🔴 CREDIT OFFICER APPROVAL MANDATORY

CREDIT OFFICER APPROVAL IS MANDATORY for all non-auto-decisions. COMMITTEE required above officer authority. APPROVAL REQUIRED for all policy exceptions. Agent never commits the institution without human credit authority sign-off.

Auto-Decision Lane

Policy compliant · Fair lending clear

Instant Reg B adverse action (auto-decline)

LOS updated automatically

Funding workflow initiated

Credit Officer Package

Credit memo: institution template, committee-ready

Term sheet draft with pricing grid

Covenant package (maintenance + reporting + negative)

CECL provision memo

🔴 HITL Gates — Always Required

All non-auto-decisions: Credit Officer

Above officer authority: Committee

All policy exceptions: Approval required

Fair lending flag: FL Officer + Credit Officer

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Credit Officer Workbench

nCino / Abrigo / Sageworks integration

Committee-ready memo in institution template

Spreading with all adjustments documented

Exception log with severity scoring

CRE: 3 weeks → 4 days · C&I: 2 weeks → 3 days

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Fair Lending & ECOA

Disparate impact: Real-time on every decision

Pricing disparity: >25bps flag

Redlining screen: Geographic analysis

HMDA LAR: Auto-updated on every application

Quarterly fair lending report: Auto-generated

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Post-Booking Portfolio Intelligence

Covenant breach: Immediate alert + waiver workflow

Annual review: Auto-assembled at anniversary

CECL migration: Quarterly PD/LGD tracking by cohort

Watch list: Auto-identification from deterioration signals

Maturity ladder: 90-day early alert

07 · Performance Targets — Underwriting Velocity & Quality

4 days

was 3 weeks

CRE Underwriting

3 days

was 2 weeks

C&I / ABL

<4 min

was 1–3 days

Auto-Decision (Consumer/SBA)

70%+

Consumer/SBA eligible

Auto-Decision Rate

100%

on every decision

Fair Lending Screen

80%

eliminated by Agent

Spreading Time Reduction