Figure Launches Document Review AI

ByTMN Editor Reading Time: 2 minutes

Figure Technology announced a new tool using OpenAI’s GPT, a “stare and compare killer” geared towards reducing costs, manual work, and bias while increasing speed and customer satisfaction.

The tool uses AI to handle lending’s biggest and costliest challenges, first targeting document reviews.

Leaders at Figure say LOs and processors have used a “stare and compare” method of reviewing documents, staring at reams of side-to-side loan documents and data and comparing the information to ensure accuracy.

“We’ve yet to find a lender who doesn’t want to reduce bias, lower costs, and eliminate manual work or isn’t eager to improve accuracy and customer and employee satisfaction. Now, thanks to AI, a technology leader like Figure is even more well positioned to help lenders solve these big pain points,” said Nicole Beaulieu, Chief Technology Officer at Figure. 

“Our growing generative AI investment is a prime example of how we’re building a technology platform at the forefront of modernizing the mortgage ecosystem to reduce costs and provide value to lenders and consumers alike.”

Figure developed a four-phased process, extracting twelve areas of data points that were traditionally key to the “stare and compare” process and building an AI-driven model including more than six years of origination data, total documents, pages, and attributes. Then, a “Curation team” of customer-facing employees provided feedback based on hours of daily interactions with applicants and the technology, allowing the model to learn accurately and speed improvements.

The company claims these initial results:

  • A 93% improvement in manual upfront document review labor, which reduces the high costs and unnecessary bottlenecks typically associated with processing loans;
  • When applied to efficiency savings garnered by Figure’s recently launched AI-powered customer service chatbot, Figure expects to remove more than $8 million in costs;
  • An NPS score of 80 – a two point increase from an already exceptional 78; and
  • A 100% YoY increase in 5-star reviews mentioning speed.

“We’re now embedded in more than 120 lending partners, and we hold ourselves to the highest standard of technology to keep raising the bar for them, with a series of innovations that exceed their expectations. We consider our AI our lending partners’ AI, so we designed it with them in mind – for their own funnels, processes, and customers,” said Michael Tannenbaum, Chief Executive Officer of Figure. 

“Bigger picture, by lowering loan processing costs, we’re lowering our product costs and thereby housing costs broadly.”

Figure Technology Solutions, the parent company of Figure Lending LLC, uses automated underwriting and blockchain technology to quickly close HELOCs. It does not exclusively work in lending. Earlier this year, the company sought approval from regulators to issue an interest-bearing stablecoin.

It recently launched an AI-powered chatbot, moved to a data-based home valuation, and released automation that assists in faster income identification and verification.