Rocket makes AI push with new board appointment

Rocket Cos. announced the addition of Alex Rampell, a fintech and artificial intelligence expert, to its board as an independent director, further underscoring its plans to advance in the technology space.

His arrival comes as Rocket actively makes ongoing investments in artificial intelligence in its aims to become an "AI-powered homeownership company," which it stated in late 2023. 

Currently a general partner focused on fintech investments at venture capital firm Andreesen Horowitz, Rampell has voiced his support for development and disruption within financial services through responsible implementation of artificial intelligence, notably generative AI tools.

"I'm looking forward to working closely with leadership and the board to learn even more about how we can make Rocket the leader in using AI to simplify the process of buying, selling and financing homes," Rampell said in a press release. 

A fintech veteran, Rampell was one of the co-founders of buy-now-pay-later startup Affirm, which went public in 2021. Earlier in his career, Rampell also co-founded Trialpay, a payments firm acquired by Visa in 2015.

"Alex possesses a rare and remarkable perspective on the intersection of technology, finance and emerging trends," said Dan Gilbert, Rocket Cos. founder and chairman, in a press release. 

"For nearly three decades, he has been creating tech products that simplify the payments and financial processes for a number of large companies," Gilbert added. 

In addition to Rocket, Rampell also serves on the boards of several Andreesen Horowitz-funded companies, including real estate startups Divvy, Flyhomes, Loft and Point.

His appointment is just the latest example of Detroit-based Rocket's drive to establish itself as a AI and fintech leader. He joins the mortgage and real estate services giant after the late 2023 accession of CEO Varun Krishna to Rocket's board as a Class III director, just a few months after he took over the top executive role. Krishna came to Rocket after holding management positions overseeing consumer products and programs at technology-backed companies Paypal and Intuit. 

In early 2024, Rocket Cos. also appointed its first chief marketing officer to manage communication efforts across all of its lines of business. A consultant for several technology-based platforms, Jonathan Mildenhall was also instrumental in the growth of Airbnb after its launch. 

Rocket's evolving technology strategy is unfolding as the home lending market continues to decelerate following the record-breaking originations boom of a few years ago. As mortgage rates rapidly leaped over the past two years to levels two times higher or more from where they stood at the end of 2021, originations plunged, particularly in the refinance space, where Rocket thrived. Data from the Mortgage Bankers Association show originations volumes still running more than 10% lower year over year.

The market for mortgage lending led analysts at Keefe, Bruyette & Woods to downgrade Rocket's stock-value outlook for 2024. In particular, they cited subdued refinance volume as a potential trouble spot, calling it a "relative disadvantage" for the company. 

Although overall lending activity is on a noticeable upward trend to start this year, challenges are still expected in the industry before improvement returns to a manageable pace in 2025, according to the MBA. But while lending growth will occur, levels are unlikely to approach the heights of 2021, leading many mortgage businesses to look for different avenues of growth.

The MBA predicts origination volumes to increase 22% to $2 trillion this year from $1.64 trillion in 2023. By 2026, the association said origination activity should rise to $2.44 trillion. By comparison, 2021 ended with a record $4.44 trillion worth in production.