What AI tools do commercial real estate lenders use for credit memos?
Lenders use AI for credit memos in two ways: to read and check the loan package (rent roll, T-12, appraisal, borrower model) and to draft the memo from the checked figures. The second only works if the first is done well. A memo drafted from unchecked numbers is faster to write and slower to approve.
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Lenders use AI for credit memos in two ways: to read and check the loan package (rent roll, T-12, appraisal, borrower model) and to draft the memo from the checked figures. The second only works if the first is done well. A memo drafted from unchecked numbers is faster to write and slower to approve.
What a credit memo needs
- Transaction summary: borrower, sponsor, property, loan amount, purpose, structure.
- Property and market: occupancy, rents against market, recent sales nearby.
- Cash flow: in-place NOI, underwritten NOI and the adjustments between them.
- Sizing: DSCR, LTV and debt yield, and which constraint binds.
- Risks and mitigants, and the conditions of approval.
Where AI helps
1. Reading: pulling figures from scanned rent rolls, T-12s and appraisals without re-keying.
2. Checking: tying the rent roll to the T-12, recomputing the model, comparing rents and value with the market.
3. Drafting: writing each section from the checked figures, in the bank's template.
4. Flagging: listing what could not be checked, so the analyst knows where to look.
What to require from any tool
- Every figure traceable to a page or a record.
- The bank's own memo template and wording, not a generic format.
- Your files never used for anyone else.
- An honest list of what it did not check.
How Titleman fits
Titleman reviews the loan package figure by figure, marks each figure on a copy of your files and drafts the memo with the underwriting inside it. We sign an NDA first, and your files are never shown to another client. See Deal Review: https://titleman.ai/products/deal-review