rocket mortgage's bet on artificial intelligence (AI) resulted in a patented platform called Rocket Logic. The platform can automatically process nearly 90% of the data points extracted from documents in a single month, reducing the number of interactions professionals have with mortgage lenders by 25%. According to the company, the loan amount has increased compared to the previous year.
This launch is part of the parent company's decision to rocket company, Put AI at the center of your business strategy. It is supported by Varun Krishna, a financial technology veteran and former executive. intuition and PayPalHe was appointed as the company's new CEO in July 2023, succeeding Bob Walters.
Under Krishna's leadership, Rocket piloted an AI virtual assistant for outbound customer calls by 325 mortgage bankers in the fourth quarter of 2023. The assistant automatically posts, summarizes, and fills in hundreds of important application fields hands-free and in real-time, allowing bankers to: Become more productive.
In February, the company expanded its board of directors from eight to nine people and brought in AI and fintech expert Alastair (Alex) Lampell to lead the company as it pursues its mission of AI-powered home ownership. provided insight. Mr. Rampel has co-founded several fintech companies including: agree with.
During that time, Rocket developed a patented platform. The platform relies on over 10 petabytes of proprietary data, 50 million call records per year, deep learning, and generative AI systems, the financier claims. The technology allows the company to close loans 2.5 times faster than the industry average, the lender says.
“By leveraging data and advanced AI, we are streamlining the loan origination process from application to closing to help customers get home quickly and reliably,” said Josh Zook, chief technology officer at Rocket Mortgage. ” said in a prepared statement.
Rocket Logic scans and identifies files when a client uploads the first document to a lender's portal, securing the correct document. The system's computer vision model then extracts relevant information and processes the document instantly. This allows customers to quickly find out if they qualify for a mortgage.
However, Lockett said, “The system is built on deep learning algorithms to improve efficiency and accuracy, while being powered by underwriter oversight to continuously improve the process.” states.
The platform automatically identifies nearly 70% of the more than 1.5 million documents it receives each month. In February, the company estimates it processed about 90% of the 4.3 million data points extracted from documents such as W-2s and bank statements, saving 4,000 manual hours.
Regarding loan origination, Rocket said its platform “will help Rocket customers reduce the time it takes to complete a home purchase by days, increasing turn times by 25% from August 2022 to February 2024. % shorter.”
Additional products will be added to the platform in 2024, including products from external partners.
Rocket executives have expressed confidence that investments in AI will accelerate the company's profitability. In 2023, the company lost money, with a GAAP net loss of $390 million.
Brian Brown, the company's chief financial officer, told analysts in February that he believes AI will shorten response times and improve the customer experience by increasing productivity. Using AI, Rocket can move loans off the balance sheet faster, reducing funding costs.
“So we fully believe these will be reflected in our financial metrics and, frankly, they already are through some of our investments in 2023,” Brown told analysts. “We believe that[using AI]we can produce significantly more output while keeping fixed costs relatively flat.”
