Which of the following statements regarding the automated underwriting process is NOT true?

The statement that the marginal cost per loan is greater than traditional underwriting is not true. In fact, one of the primary advantages of the automated underwriting process is that it typically reduces the cost associated with underwriting each loan. Automated systems streamline the process by using algorithms to assess risk factors and borrower eligibility, which minimizes the need for extensive manual review and the associated labor costs. This leads to a lower cost per loan compared to traditional underwriting methods.

On the other hand, the other statements reflect accurate aspects of the automated underwriting process. The system indeed reduces underwriting time by providing quicker responses, enhances efficiency by increasing the speed and accuracy of assessments, and generally results in a lower cost per loan. These benefits contribute to a more effective and streamlined lending process, making it appealing to lenders looking to improve their operations.