Better’s new ChatGPT app targets lenders Rocket and UWM
Vishal Garg, Better.com
Source: Better.com
Online mortgage platform Better ChatGPT has partnered with OpenAI to launch an app within ChatGPT that it says will significantly reduce the time it takes for companies to secure a mortgage or home equity loan, CNBC has learned exclusively.
The app, to be announced later Thursday, takes Better’s mortgage engine and combines it with OpenAI’s models to speed up the underwriting process for loan officers working at banks, mortgage brokers and fintech firms. Vishal Garg he said in an interview.
“Shorting the mortgage underwriting process that many of us have personally experienced from 21 days to 47 seconds and enabling it through ChatGPT is a huge opportunity for everyone,” Giancarlo Lionetti, OpenAI’s chief commercial officer, told CNBC.
“OpenAI is proud to partner with Better to develop technology that is revolutionizing the mortgage industry and making home financing cheaper, faster and easier for American families,” he added.
For decades, originating a mortgage has been one of the most time-consuming tasks in American finance, with lenders relying on dozens of steps that can take weeks to complete. Big banks after the 2008 financial crisis JPMorgan Chase The decline in the US mortgage market has led to an increase in non-bank players. Rocket Mortgage And United Wholesale Mortgage.
Better shares rose as much as 5% on the news, while Rocket Mortgage shares fell more than 6% and UWM shares fell almost 4%.
Is there a risk of outage?
Now, in an age of leading AI companies target inefficiencies in the corporate environment; It is possible that artificial intelligence agents will reshape the US housing loan market, which generates more than $1 trillion in mortgage loans annually.
Garg said the new app is part of Better’s pivot from being primarily a lender to consumers to becoming a “mortgage-as-a-service” technology platform for other mortgage players.
Companies are directly targeting dominant mortgage players by getting competitors to move faster, Garg said. According to Better, by saving an average of 21 days of time, lenders can reduce the cost of underwriting loans and ultimately save consumers money.
“AI is now making mortgages,” Garg said. “Rocket, UWM, Pennymac, a bunch of guys who are big public companies, they make money by charging a one and a half percent tax as security for mortgages. That’s $20 billion that the American people pay in a typical year.”
Better’s OpenAI models fed by mortgage data save time by running parallel workflows simultaneously across dozens of checkpoints, including appraisals, title reports, income, credit reports and other metrics, Garg said.
“This is not a simple tool call. It is a multi-tool call with a super long, extended logic tree and a very wide context window,” Garg said.
