Rocket Mortgage: Patented AI process cuts turn times by 25%

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The Detroit-based lender unveiled “Rocket Logic” on Tuesday, an AI-fueled platform that can glean insights from 10 petabytes of proprietary data and transcripts from 50 million borrower calls each year.

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Rocket Mortgage says it’s closing loans 25 percent faster than it was less than two years ago, thanks to the use of generative AI, automation and machine learning to gather and process documents needed to underwrite borrowers.

Rocket was granted U.S. Patent No. 11,921,696 on March 5, 2024, for a process employing “an event-listener architecture with a continual feedback loop that operates to determine the most efficient action pathways for distributed services to populate, verify, and qualify missing data points from a data set.”

The Detroit-based lender on Tuesday introduced the world to its artificial intelligence-driven technology platform, Rocket Logic, which it says benefits from insights gleaned from 10 petabytes of proprietary data and transcripts of 50 million calls Rocket holds with borrowers every year.

A petabyte is 1 million gigabytes (GBs), which is roughly equal to the amount of storage capacity of 4,000 laptop computers equipped with 256 GB hard drives, or 500 billion pages of printed text, according to cloud storage provider

“The system’s technology starts when the client uploads their first document to their secure portal,” Rocket said in a press release. “Using AI, Rocket Logic scans and identifies the files to ensure clients are providing the correct documentation. Once files are uploaded, the system’s computer vision models extract pertinent information and processes the documents instantly.”

Rocket claims the system automatically identifies close to 70 percent of the more than 1.5 million documents the lender inputs every month, saving more than 5,000 hours of manual work for underwriters in February alone. Of 4.3 million data points extracted from documents like W-2s and bank statements, close to 90 percent were automatically processed, saving another 4,000 hours of manual work, Rocket said.

Although Rocket Mortgage claims that Rocket Logic is shaving “several days” off the time needed to close purchase loans, a company spokesperson declined to say how long it takes the company to close loans, on average. In a press release, the company said it’s been able to reduce turn times by 25 percent since August 2022.

Rocket Mortgage said it plans to build additional products on the Rocket Logic platform this year, which will include offerings for external partners.

Rocket Mortgage has partnered with Salesforce to make its mortgage origination technology available as an end-to-end “mortgage-as-a-service” to any lender with licensed mortgage loan officers through Salesforce Financial Services Cloud.

A separate partnership between Rocket Mortgage and Q2 Software Inc. gives any bank or credit union the ability to “launch, replace, or augment” their lineup of home loans by integrating Rocket Mortgage’s digital mortgage application.

Rocket subsidiary Lendesk last year launched an AI assistant to help Canadian mortgage professionals sift through more than 7,000 mortgage options, reducing the research and analysis needed to identify the right product for their clients.

Loan servicing giant Mr. Cooper, which spends several hundred million dollars a year on call center operations, is also engaged in a multiyear artificial intelligence project that company executives expect will reduce annual expenses by at least $50 million.

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