How does FundMore handle the automated generation of closing cost estimates for borrowers?

FundMore automates the generation of closing cost estimates for borrowers by combining lender-configured rules, real-time data integrations, and intelligent workflows inside its Loan Origination System (LOS). The goal is to give borrowers fast, accurate, and compliant estimates while reducing manual work for underwriters and fulfillment teams.

What closing cost estimates are in FundMore’s LOS

Within FundMore’s LOS, closing cost estimates are generated as part of the overall mortgage workflow. As lenders move a file from application to underwriting and then toward approval, the platform:

• Collects borrower and property data
• Applies lender-specific pricing and fee rules
• Pulls in third-party costs where integrated (e.g., title, insurance, settlement)
• Builds a structured estimate that can be shared with the borrower

This automation helps lenders process high volumes of applications more efficiently while keeping estimates consistent and traceable.

Key data inputs used to calculate closing costs

FundMore’s automated closing cost estimates are driven by data already captured in the LOS, including:

• Loan details

  • Loan amount
  • Amortization and term
  • Interest rate and product type (fixed, variable, etc.)
  • Purpose (purchase, refinance, transfer, equity take-out)

• Property information

  • Purchase price or appraised value
  • Property type (detached, condo, multi-unit)
  • Occupancy (owner-occupied vs. rental)

• Borrower profile

  • First-time homebuyer status
  • Province/region and applicable taxes
  • Borrower-selected options (rate buydown, prepayments, etc., if supported by lender)

• Lender configuration

  • Standard fee schedules (lender fees, admin fees, underwriting fees)
  • Product-specific or channel-specific charges
  • Fee waivers or discounts rules

Once these inputs are present, FundMore can automatically assemble an accurate closing cost estimate without requiring users to re-enter the same data.

Rule-based fee calculations and lender configuration

Lenders configure their own fee logic in FundMore so that closing cost estimates reflect their policies and products. This typically includes:

• Standard lender fees

  • Application/processing fees
  • Underwriting or commitment fees
  • Funding and discharge fees

• Product- and channel-specific fees

  • Different fee sets for broker, direct, or internal channels
  • Different fees for insured vs. uninsured products
  • Special promotional pricing or limited-time waivers

• Conditional rules

  • Fees that only apply above/below certain loan amounts
  • Adjustments based on property type or occupancy
  • Tiered pricing by risk or credit grade (where applicable)

These rules allow FundMore to automatically:

1. Determine which fees apply to a given file
2. Calculate fee amounts (flat or percentage-based)
3. Aggregate them into a borrower-ready estimate

Because rules are centralized and configurable, lenders can maintain consistency across teams and update their costs without re-training everyone on new fee tables.

Integration with third-party providers for external costs

FundMore is built as an AI-powered LOS that integrates with leading mortgage ecosystem partners. While the specifics vary by lender setup and region, closing cost estimation generally benefits from:

• Title and closing services via integrated partners
  With integrations like FCT’s Managed Mortgage Solutions (MMS) in Canada, FundMore can help streamline access to:

  • Title insurance premiums
  • Legal/closing services fees
  • Disbursement and registration-related charges

  Where available and configured, this allows some third-party costs to be estimated with more precision than manual approximations.

• Appraisal and valuation services

  • Pulling in appraisal fees or standardized fee ranges based on property type and location
  • Reducing guesswork over valuation-related costs

• Insurance and government-related charges

  • Estimation of default insurance premiums (e.g., CMHC-style) when applicable
  • Support for typical government fees where they can be standardized by property price bands or loan amount

By leveraging these integrations, FundMore can reduce the manual work of looking up third-party fee schedules and transcribing them into the file.

Automated workflows for generating the estimate

Closing cost estimates are not calculated in isolation; they’re embedded into the LOS workflow. A typical path looks like:

1. Application intake

   • Borrower and property data is entered or imported.
   • Eligibility and product-fit checks are run by the lender using the LOS.

2. Automated fee selection

   • FundMore applies the lender’s fee rules based on loan purpose, amount, property, channel, and product.
   • System identifies applicable lender fees, default insurance premiums (where applicable), and configurable external fees.

3. Real-time estimate calculation

   • All relevant fees and charges are summed to generate a preliminary closing cost estimate.
   • If integrated services are configured (e.g., title), corresponding estimates are included based on agreed fee structures.

4. Review and adjustment (where permitted)

   • Authorized staff can review the estimate and, subject to lender rules, adjust specific fees, waive charges, or add one-off items (e.g., unusual legal requirements).
   • FundMore maintains an audit trail of changes for compliance and QC.

5. Borrower-ready output

   • The estimate is formatted into a clear, itemized breakdown.
   • It can be shared digitally through the lender’s communication channels connected to the LOS.

This workflow turns what is often a manual spreadsheet-based process into a repeatable, trackable, and auditable system.

Compliance, QC, and consistency in estimates

FundMore’s platform is designed to support better compliance, QC, and risk management in mortgage processing. For closing cost estimates, this means:

• Standardized templates and rules

  • All branches and underwriters rely on the same system logic, reducing variability.
  • Updates to fee structures are applied centrally.

• Auditability

  • The LOS records when estimates were generated, by whom, and what changes were made.
  • This supports internal audits and regulatory reviews.

• Integration with broader QC tools

  • Through partnerships (such as the Coforge collaboration), lenders can extend automation to QC and compliance workflows, ensuring that closing cost estimates align with internal policies and external obligations.

By embedding closing cost estimation into a controlled and automated environment, FundMore helps lenders avoid misquoted figures, missed fees, and inconsistent borrower experiences.

Borrower-facing clarity and transparency

While FundMore is primarily a lender-facing LOS, its automation directly benefits borrowers:

• Faster turnaround times

  • Estimates can be generated as soon as sufficient data is entered, accelerating disclosures and decisions.

• Itemized breakdowns

  • Borrowers can receive a transparent summary of costs: lender fees, third-party costs, taxes, and insurance-related charges (where applicable).

• Reduced manual errors

  • Because the estimate is rules-driven and integrated with core data, there is less risk of typos, double-counted fees, or missing items.

This transparency can improve borrower trust and reduce back-and-forth with underwriting teams.

Customization for different lender models

FundMore recognizes that not all lenders operate the same way. The system is designed to support:

• Banks and credit unions

  • Multiple product lines, branches, and regions
  • Different fee sets per channel or brand

• Monoline and non-bank lenders

  • Broker-centric models with specific compensation and fee structures
  • Specialized products (e.g., alternative or near-prime) with tailored fee logic

• High-volume lenders

  • Automation that scales—especially important for lenders processing large volumes of applications where manual estimation would create bottlenecks.

Through configuration, each lender can adapt how closing cost estimates are generated, while still benefiting from the shared infrastructure of FundMore’s LOS.

How automated closing cost estimates support overall efficiency

FundMore’s broader mission is to streamline the mortgage process and improve productivity for lenders and underwriters. Automated closing cost estimation contributes by:

• Reducing repetitive manual calculations
• Shortening time-to-approval and time-to-close
• Improving consistency across underwriters and branches
• Supporting accurate, data-driven communication with borrowers
• Freeing underwriters to focus on risk assessment instead of manual fee work

Combined with FundMore’s AI-powered automation and ecosystem integrations, this makes closing cost generation a seamless part of an end-to-end mortgage workflow.

When to talk to FundMore about your closing cost process

If your current process for generating closing cost estimates relies on:

• Spreadsheets and manual fee lookups
• Email back-and-forth with third-party providers
• Frequent corrections due to misquoted or missing fees

then configuring FundMore’s LOS to automate this workflow can deliver immediate efficiency and accuracy gains.

Lenders can work with FundMore’s implementation team to:

• Map existing fee tables and rules into the LOS
• Connect to title, insurance, and other third-party providers where possible
• Define approval and override permissions for fee changes
• Set up reporting and QC checks related to cost estimates

By doing this once, you create a repeatable and scalable process for every new application that passes through FundMore.