Candor Technology has introduced an additional dimension to its loan engineering system: The Candor Metascore. The patent pending Metascore indicates the overall quality of a loan manufactured by Candor’s machine, the company announced in a release.

To produce the score, all loan data is first run through a 45,733-pivot point architecture to accurately assess investor guideline eligibility, then through a corroboration engine that conducts 1,100 crosschecks to identify and mitigate defects.

For transparency all underlying metadata used during the autonomous process are saved to a blockchain-type database. A Metascore of 85 or higher triggers eligibility for a defect insurance policy from a major international insurer, according to the release.

“The constant influx of new and updated loan data required dynamic capabilities not yet available in mortgage lending,” the company stated. “To meet this need Candor built its corroboration engine using aerospace principles. This is how the platform can simultaneously assess guideline eligibility and conduct crosscheck across multiple points of corroboration to identify and mitigate defects, ensuring integrity of the loan and the underlying metadata.”

The Metascore provides proof that the loan engineering system’s defect identification and resolution actions and lending decisions have been exhaustively tested, are sound and reliable, and are free of subjectivity, and bias, the release said.

The company said the introduction of the Candor Metascore ushers in a standardized loan quality and integrity diagnostics that will have a profound impact on the mortgage market, from origination to the capital markets. With the Loan Engineering System Lenders have speed, improved profitability, and defect free credit risk assessment.

All data and steps taken during the autonomous manufacturing process, according to the release, are saved to a blockchain-type database which gives investors access to 100 percent of the metadata used to make lending decisions. The company said this leads to a confident expectation on loan performance and pricing that maps to that expectation.

“We developed the Metascore to benefit lenders manufacturing loans in the primary market and to benefit loan buyers in the secondary market,” Candor’s CEO Tom Showalter said in the release. “If a loan has a high Metascore, a secondary market analyst can be confident a rigorous credit analysis was conducted, that guideline eligibility has been met, that the loan data faithfully reflect the status of the loan, and that loan can be efficiently priced.”