Building a Loan Underwriting Expert with Lyzr Automata,Streamlit and OpenAI

The loan underwriting process is often slow and cumbersome, relying heavily on manual document review and analysis. This leads to bottlenecks, delays loan approvals, and frustrates both lenders and borrowers. Additionally, generating comprehensive reports like executive summaries, business descriptions, and sector analyses requires significant time and expertise.

This inefficiency can put lenders at a disadvantage, especially in a competitive market. Traditional methods may also struggle to keep pace with the growing volume of loan applications.

We propose a solution: a Loan Underwriting Expert powered by Lyzr Automata,Streamlit and OpenAI. This application leverages AI to automate report generation and streamline the underwriting process, resulting in:

Faster Loan Approvals: Automating report generation frees up underwriters’ time, allowing them to focus on complex cases and expedite approvals.
Improved Efficiency: Streamlining the process reduces manual work and potential errors, leading to a more efficient underwriting system.
Data-Driven Decisions: AI-generated reports can analyze vast amounts of data, providing valuable insights to support informed loan decisions.

Setting Up the Environment
Imports:

Imports necessary libraries: os, streamlit, libraries from lyzr_automata, and dotenv.
Loads the OpenAI API key from environment variables using load_dotenv and os.getenv.

pip install lyzr_automata streamlit

import streamlit as st
from lyzr_automata.ai_models.openai import OpenAIModel
from lyzr_automata import Agent,Task
from lyzr_automata.pipelines.linear_sync_pipeline import LinearSyncPipeline
from PIL import Image
from dotenv import load_dotenv
import os
from prompt import example
load_dotenv()
api = os.getenv("OPENAI_API_KEY")

Sidebar and User Input:

def main():
    # Initialize session state to store form data
    if 'form1_data' not in st.session_state:
        st.session_state.form1_data = {"name": "", "age": "", "employment_type": "", "country": ""}
    if 'form2_data' not in st.session_state:
        st.session_state.form2_data = {"credit_score": "", "loan_amount": "", "business_name": "", "business_description": "", "sector": ""}

    # Create sidebar navigation
    page = st.sidebar.radio("Navigation", ["Personal Information", "Business Information", "Result"])

    if page == "Personal Information":
        st.title("Personal Information")
        with st.form(key='form1'):
            st.session_state.form1_data['name'] = st.text_input("Enter your name:", st.session_state.form1_data['name'])
            st.session_state.form1_data['age'] = st.text_input("Enter your age:", st.session_state.form1_data['age'])
            st.session_state.form1_data['employment_type'] = st.selectbox("Enter your age:", ["Full Time", "Part Time", "Contract", "Freelance"], index=0 if st.session_state.form1_data['employment_type'] == "" else ["Full Time", "Part Time", "Contract", "Freelance"].index(st.session_state.form1_data['employment_type']))
            st.session_state.form1_data['country'] = st.selectbox("Select your country:", ["USA", "Canada", "UK", "Australia"], index=0 if st.session_state.form1_data['country'] == "" else ["USA", "Canada","UK","Australia"].index(st.session_state.form1_data['country']))
            submit_button = st.form_submit_button(label='Submit Form 1')
            if st.session_state.form1_data['name'] == "":
                st.error("Enter Your Name")

    elif page == "Business Information":
        st.title("Business Information")
        with st.form(key='form2'):
            st.session_state.form2_data['business_name'] = st.text_input("Business Name:",st.session_state.form2_data['business_name'])
            st.session_state.form2_data['business_description'] = st.text_input("Business Description:",st.session_state.form2_data['business_description'])
            st.session_state.form2_data['sector'] = st.text_input("Business Sector:",st.session_state.form2_data['sector'])
            st.session_state.form2_data['credit_score'] = st.text_input("Credit Score:", st.session_state.form2_data['credit_score'])
            st.session_state.form2_data['loan_amount'] = st.text_input("Loan Amount:", st.session_state.form2_data['loan_amount'])

            submit_button = st.form_submit_button(label='Submit Form 2')

    elif page == "Result":
        st.title("Result Page")
        result = generate_underwriting()
        st.markdown(result)

Creates a sidebar navigation menu using st.sidebar.radio.
Based on the selected page (“Personal Information” or “Business Information”):
Displays a form to collect user information using st.form.
Stores user input in session state (st.session_state.form1_data and st.session_state.form2_data).
Uses st.text_input, st.selectbox, and st.form_submit_button for form elements.
Validates user input (checks if name is entered in personal information form).
Loan Underwriting Generation:

def generate_underwriting():
    loan_agent = Agent(
        role="Loan Consultant",
        prompt_persona=f"You are an Expert Loan Underwriter.Your Task is to generate Executive summary,Business Description and sector analysis."
    )

    prompt = f"""
    You are a loan Underwriting expert.Your Task is to generate Executive summary,Business Description and sector analysis.
    Based On Below Input:
    Name:{st.session_state.form1_data['name']}
    Age: {st.session_state.form1_data['age']}
    Employment Type: {st.session_state.form1_data['employment_type']}
    Country: {st.session_state.form1_data['country']}
    Business Name: {st.session_state.form2_data['business_name']}
    Business Description: {st.session_state.form2_data['business_description']}
    Business Sector: {st.session_state.form2_data['sector']}
    Credit Score: {st.session_state.form2_data['credit_score']}
    Loan Amount: {st.session_state.form2_data['loan_amount']}

    Example:
    Certainly, here's how you might structure those sections for a loan underwriting document:

    **Executive Summary:**
    The executive summary provides a concise overview of the loan request, highlighting key points for consideration by the underwriter.

    Executive Summary:
    [Business Name] is seeking a [Loan Amount] loan to [Purpose of Loan]. With [Number of Years] years of successful operation in the [Industry/Sector], [Business Name] has demonstrated steady growth and profitability. The requested funds will be used to [Briefly Explain Purpose]. [Business Name] has a strong management team with [Number of Years] years of combined experience, and the collateral provided offers sufficient security for the loan. The financial projections indicate the ability to comfortably service the debt, with a projected [Repayment Plan]. Overall, the loan presents a low risk with significant potential for mutual benefit.

    **Business Description:**
    The business description provides detailed information about the company, its history, operations, products/services, market position, and management team.

    Business Description:
    [Business Name] is a [Type of Business] located in [Location]. Established in [Year], the company specializes in [Products/Services]. Our target market includes [Target Market Description]. [Business Name] distinguishes itself through [Unique Selling Proposition]. Our management team includes [Names and Positions], each bringing [Number of Years] years of experience in [Industry/Sector]. With a focus on [Core Values or Objectives], [Business Name] has built a strong reputation for [Quality/Service/Innovation]. We operate from [Number of Locations] locations and have a workforce of [Number of Employees].

    **Sector Analysis:**
    The sector analysis provides an overview of the industry or sector in which the business operates, including market trends, competition, regulatory environment, and growth opportunities.

    Sector Analysis:
    The [Industry/Sector] is characterized by [Key Trends], including [Trend 1], [Trend 2], and [Trend 3]. Market demand for [Products/Services] continues to grow due to [Reasons for Growth]. However, the sector faces challenges such as [Challenges], including [Challenge 1] and [Challenge 2]. Competition is intense, with major players including [Competitors] dominating market share. Regulatory factors such as [Regulatory Factor 1] and [Regulatory Factor 2] impact industry operations. Despite challenges, the sector presents opportunities for growth, particularly in [Opportunity Areas]. [Business Name] is well-positioned to capitalize on these opportunities due to [Strengths], including [Strength 1] and [Strength 2].

    These sections provide a comprehensive overview of the business and its operating environment, aiding the underwriter in assessing the loan request.
    """

    loan_task = Task(
        name="loan Consult",
        model=open_ai_text_completion_model,
        agent=loan_agent,
        instructions=prompt,
    )

    output = LinearSyncPipeline(
        name="loan underwriting Pipline",
        completion_message="pipeline completed",
        tasks=[
            loan_task
        ],
    ).run()

    answer = output[0]['task_output']

    return answer

generate_underwriting:
Creates an Agent object representing the loan consultant and sets its prompt persona.
Defines a prompt containing user information, example text, and instructions for the AI model.
Creates a Task object specifying the model, agent, and instructions.
Creates a LinearSyncPipeline to run the task and retrieves the generated output.
Returns the generated underwriting text.
Execution:

if __name__ == "__main__":
    main()

Runs the main function if the script is executed directly.

try it now: https://lyzr-loan-underwriter.streamlit.app/

For more information explore the website: Lyzr

Github: https://github.com/harshit-lyzr/loan_underwriting