AI could help lenders compare a loan’s changing terms

A loan’s terms can change between the first quote and the day the money is paid out. Checking that the final terms were approved means tracing the changes across the file.

This week’s Credit Memo suggested testing AI on that work. We think document comparison is a good place to start because the lending team can check every finding against a record it already has.

Follow the amount through the file

Take a hypothetical loan quoted at $100,000 but recorded at $120,000 when funded. A later approval may explain the increase. If that approval is missing, the reviewer needs to know.

AI could read the quote, approval and funding record, put the amounts and dates side by side, and link each entry to its document. The reviewer could then look for the approval behind the increase without searching through the whole file first.

The distinction matters when several versions of a document are present. Using the newest figure in a summary can conceal an unexplained change. Keeping the earlier amount visible gives the credit officer something specific to investigate.

At Kita, that is the work we would want AI to take off a reviewer’s desk. Find the relevant records, show where they disagree and make missing evidence clear. The credit officer can then spend time resolving the difference and deciding whether the change is acceptable.

Tuesday’s Credit Memo suggested trying this on closed loans. Comparing the AI’s findings with completed reviews would show which changes it catches and which it misses. The lender could then judge whether it saves enough searching to use on open applications.