Rocket Mortgage rolls out AI-powered platform for underwriting

Rocket Mortgage is flexing its tech muscle with the launch of a platform that uses machine learning to pull important information from borrower documents during the underwriting process.

According to Rocket, the new technology dubbed Rocket Logic will be used to scan and identify files uploaded by the borrower to "ensure clients are providing the correct documentation." Afterwards, the system's computer models extract pertinent information and process the documents instantly.

The platform is designed to make "homeownership simpler and quicker" and has thus far decreased closing times by 25% from August 2022 to February 2024, the lender claims. The product currently identifies close to 70% of the 1.5 million documents received monthly, which they say has led to savings of more than 5,000 hours of manual work for underwriters in the month of February. 

Third-party vendors such as ArmorDoc, Ocrolus, Prudent AI offer similar products to the financial services space. However, few mortgage lenders, if any, have this technology in-house. 

"By leveraging data and advanced AI, we are streamlining the loan origination process from application to closing, helping our clients home with speed and certainty," said Josh Zook, chief technology officer for Rocket Mortgage, in a written statement Tuesday. "We are constantly enhancing this system with new AI capabilities to make our mortgage bankers and partners significantly more efficient while also getting our clients to the closing table faster."

Rocket will be building out its Rocket Logic platform throughout 2024 and has promised significant additional AI integrations to come. Further developments to its product will automate tasks for mortgage bankers, underwriters and partner brokers, it said.

The mortgage lender has been beefing up its use of AI as it pushes to be a technology-first company.

In November, Rocket announced it was testing an AI chat interface in the search engine used by its loan officers, brokers and underwriters to find answers to questions that arise during the loan origination process.

Two months later, in January, Rocket Mortgage's TPO channel launched an AI tool that will help mortgage brokers update approval letters on the go.

"AI is something that you have to have a right to win and a right to win means you have to have the assets," said CEO Varun Krishna during the company's fourth quarter earnings call. "Because of those ingredients that we have at scale, it's why we expect to be a benefactor."