“Synopsis
is
focused
on
transcribing
and
interpreting
the
conversations
and
the
data
that
we
have
around
our
clients
—
for
example,
call
logs
and
chat
interactions,”
Varun
Krishna,
CEO
of
Rocket
Mortgage,
said
in
an
interview.
“It
uses
generative
AI
to
analyze
those
conversations
and
provides
us
with
automation
and
feedback
that
we
can
implement.” 

The
new
tool
is
the
first
added
to
the
ecosystem
built
under Rocket
Logic,
the
lender’s
patented
AI-driven
platform
launched
earlier
this
month.
It
is
active
for
calls
handled
in
the
servicing
and
origination
sides
of
the
business,
including
loans
sent
by
mortgage
brokers
working
with Rocket
Pro
TPO. 

In
2023,
the
Detroit-headquartered
lender
generated
$78.7
billion
in
closed
loan
volume
and
reached
2.5
million
in
loans
serviced.
Each
year,
Rocket
employees
participate
in
65
million
calls
with
clients,
including
3.1
million
phone
calls
from
borrowers
they
service,
the
majority
of
them
being
inquiries
related
to
payments
and
escrow. 

The
new
tool
was
built
on
the Amazon
Web
Services (AWS)
cloud
computing
platform
and
used Amazon
Bedrock,
a
service
for
building
generative
AI.

Rocket
estimates
that
Synopsis
will
save
the
servicing
team
nearly
40,000
hours
annually.
It
results
from
about
“70%
of
the
interactions
being
fully
self-serve
without
the
need
for
team
member
intervention,”
the
company
explained. 

In
addition,
data
collected
from
these
calls
will
be
used
to
enhance
predictive
capabilities.
So
far,
it
has
led
to
a
10%
increase
in
resolutions
during
a
client’s
first
call,
which
saves
nearly
20,000
per
year
in
team
members
hours,
according
to
the
company. 

Krishna
said
that
Rocket
still
relies
on
humans
to
ensure
that
the
AI
services
operate
with
high
degrees
of
accuracy
and
fairness
while
eliminating
bias.
At
the
same
time,
“human
beings
are
not
perfect
creatures,”
and
AI
is
tracking
human
interactions
as
well.  

“The
systems
are
designed
with
that
dual
feedback,”
Krishna
added.

Rocket’s
AI
journey

Since
Krishna
joined
Rocket
last
year,
the
top-down
message
has
been
that
AI
is
the
future
platform
for
the
company. 

To
accomplish
that,
Rocket
has
reallocated
its
resources.
The
lender
has
invested
in
data
infrastructure
and
reduced
its
focus
on
areas
such
as
auto
and
solar
loans.
Investments
are
going
to
specific
areas
of
personal
finance
and
lending
that
add
to
homeownership,
Krishna
said. 

“In
the
past,
we
focused
on
things
outside
of
homeownership
—
auto,
solar
and
these
things
that
were
adjacent.
But
what
you
can
expect
to
see
from
us
is
a
company
that
is
incredibly
laser-focused
on
homeownership.
That
means
purchase,
refis,
servicing,
home
search.”

Rocket
has
also
brought
new
talent
to
the
organization.
It
will
soon
announce
a
new
chief
information
officer
after Brian
Woodring announced
his
departure
to
pursue
new
opportunities. 

In
February,
AI
and
fintech
expert Alastair
(Alex)
Rampell,
who
co-founded
several fintech firms,
including Affirm,
joined
Rocket’s
board
of
directors. Krishna,
a former
executive
at Intuit and PayPal,
was
appointed
as
the
company’s
CEO
in
July
2023,
replacing
Bob
Walters.

Rocket’s
executives
have
expressed
confidence
that
investment
in
AI
would
accelerate
the
company’s
growth
and
profitability.
In
2023,
the
firm lost
money,
with
a
GAAP
net
loss
of
$390
million. 

According
to
Krishna,
the
company
will
pursue
market
share
growth
and
profitability.
The
addressable
market
in
mortgages
is
$1.5
trillion
to
$2
trillion,
he
said,
and
when

real
estate
and
financial
services
are
added,
it
increases
to
$5
trillion.
But
Rocket
is
“under-penetrated
in
every
metric,
despite
being
a
market
leader,”
Krishna
added.
 

Questioned
about
whether
M&A
deals
are
part
of
Rocket’s
strategy,
Krishna
said
that
the
company
is
“extremely
well
capitalized,
has
a
fortress
balance
sheet
and
a
ton
of
cash
flow.”

“That
means
that
we
are
able
to
be
open
to
opportunities,”
he
said.
“You
have
this
market
dynamic
where
valuations
are
down;
you
have
a
ton
of
fragmentation.
So,
we’re
always
looking
for
ways
that
we
can
move
faster,
whether
that
means
build
by
partner.
We’re
definitely
evaluating
all
opportunities
in
service
to
our
strategy.”

In
2021,
Rocket
acquired
personal
finance
app Truebill for
$1.275
billion
in
cash.