Roostify launches first of many AI-powered APIs on home loan platform

Image courtesy of Roostify

Home Lending Proptech releases the “first of many” API on its existing lending platform designed to automate document validation and data extraction in the lending process. The latest technology, dubbed Roostify Document Intelligence (RDI) Service, will use AI to classify, validate and extract data from mortgage-related documents.

Roostify CEO and co-founder Rajesh Bhat told FinLedger that RDI works like an API microservice, so it can be integrated into any stage of the lending process that works for a lender, whether Roostify be part of the lender’s tech stack or not.

Development teams within a lender’s enterprise can implement the features however they want and configure them to suit their current digital experience, technology stack and use cases, Bhat explained.

The technology can also give users automatic feedback when they upload incorrect or ineligible documents and flag errors before they become a data entry error.

For example, if a borrower uploads their bank statements, the extracted data may identify a large deposit that would require a letter of explanation. Once a large deposit is reported, a task can be automatically created for the borrower that explains what is needed, why and how to provide the required information. A super useful tool, given that technology can trigger additional steps if needed in what would typically be a paper trail.

“How we use the Document Intelligence Service at Roostify is just one example of a use case,” Bhat told FinLedger. “Because it is an API, it can be integrated anywhere in the lending process and support many use cases benefiting from the automated identification and extraction of data contained in the set of mortgage documents.”

A number of proptechs are working on the eventual all-digital documentation experience in lending (see , or ), but Bhat sees key differences in the San Francisco-based company’s mission.

“This ease of integration at every step and the ability to convey the extracted information throughout the process really sets it apart. What also sets it apart is that it already improves FI scores,” Bhat said.

Add to that the fact that the service already supports all major income verification documents and bank statements and is constantly updated with new supported documents, including assets and debts, identity and other documents. other mortgage documents. Even in its relatively early stages of training AI models, it already gives FI scores between 0.83 and 0.99.

Roostify’s latest launch came after a massive year for not just Roostify, but the housing and lending industry as a whole. In 2020 alone, Roostify saw a 250% increase in the number of applications submitted through its system and processed just under 1.5 million loan applications through its current platform.

Technology is currently powering the digital mortgage platforms of , TD Bank, Guild Mortgage, and more, allowing different lending parties to import data and information from online sources which then tailors the home buying process. They also offer a home equity platform for home equity loan applications and HELOCs under the same umbrella.

In January, the proptech raised a $32 million Series C round, bringing Roostify’s total funding to $65 million at the start of the new year. At the time, Roostify suggested their latest cash injection would be for investing in AI – now they are delivering on that promise.

“To thrive in a digitally driven world, mortgage lenders need critical digital transformation initiatives, such as cloud-based technology, consumer self-service solutions, and meaningful AI deployments. “, said Bhat. “We see the Document Intelligence Service as a very important first step in this process, and more broadly, our API platform as the basis for future developments.”

Previous How to start a mission-driven loan business
Next China's financial system is near "maximum stress", but side effects are yet to come: analysts