Roostify, a leading digital technology provider in home lending, has launched the Roostify Document Intelligence (RDI) Service for lenders, the first available service on its API platform, to instantly process and contextualize mortgage-related documents utilizing machine learning.
Buying a home requires a borrower to submit substantial and detailed paperwork to support the loan application, making the current manual process cumbersome, error-prone, expensive, and difficult to scale. The lending industry spends millions of dollars each year processing these documents which include W-2s, pay stubs, and borrower asset statements.
The RDI Service uses machine learning, developed in partnership with Google Cloud, to instantly process documents required for mortgage underwriting and deliver relevant data as needed to streamline the rest of the lending process. The service has three main capabilities: document classification, data extraction, and data validation.
Through document classification, the service processes a document to identify the document type and confirm whether the document satisfies an associated condition generated by a loan origination system, automated underwriting system, or rules engine. With its data extraction capabilities, the RDI Service extracts the data contained in the document and returns it as human-readable, usable data via API. The data validation service matches extracted document data against loan application data to identify any potential inaccuracies, errors, or inconsistencies.
The Roostify Document Intelligence Service is readily available to all lenders as well as mortgage service providers and technology providers. It can support an infinite number of use cases benefitting from automated identification and extraction of data contained within the mortgage document set.
“Providing new services that utilize artificial intelligence is a big step towards improving the way borrowers experience the home buying journey, and the way lenders can simplify a process that despite rapid digitization is still cumbersome and complex.”
Rajesh Bhat, co-founder and CEO at Roostify
RDI is currently able to process more than 25 of the most common borrower-provided documents (e.g., paystubs, asset statements, tax forms), and by the end of the year, will have upwards of 50 mortgage document types covered. Across the entire document set, the average confidence level is greater than 90%, with 35+ document types having a confidence level of over 95%, without manual review. Thanks to machine learning capabilities, this confidence level only improves over time.
“With mortgage lending becoming increasingly competitive, every minute and dollar counts for both lenders and homebuyers,” says Bhat. “As we look into the next decade, innovations in AI, machine learning, and other technologies will lead to a home lending industry that is virtually unrecognizable from today’s, and the foundations that we lay now are just the start of that process. The operational efficiencies the Roostify Document Intelligence Service enables serve as a foundation, and an absolutely fundamental one, for future innovations.”
The Roostify Document Intelligence Service lays the groundwork and offers real advancement for a mortgage process that isn’t simply a digitized version of the old way, but a meaningfully improved, streamlined system that will ultimately benefit both lenders, and borrowers in the future. The service is now available to all mortgage providers on Roostify's new API platform and any lender, mortgage service provider or technology provider can use the technology regardless of their existing digital infrastructure, even if Roostify isn’t their mortgage technology partner.
Roostify was founded in 2012 to modernize and simplify the manual, inefficient mortgage process and create a more enjoyable experience for the customer and lender. Today, Roostify is helping lenders process more than $50 billion in loans each month, from large enterprise banks to thriving independent brokerages. We empower lenders to accelerate and simplify the lending process to help lenders and customers alike unlock more of life’s big moments.