Rocket Cos. Posts Strong Growth in Second Quarter

Rocket Cos., a Detroit-based holding company consisting of several tech-driven real estate, mortgage, and eCommerce businesses, recorded a record purchase closed loan origination volume and generated net revenue of $2.7 billion and an adjusted revenue of $2.8 billion in the second quarter.
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The quiken loans headquarters in downtown detroit
Rocket Cos. in Detroit posted strong growth in the second quarter of 2021 throughout its portfolio. // Courtesy of Rocket Cos.

Rocket Cos., a Detroit-based holding company consisting of several tech-driven real estate, mortgage, and eCommerce businesses, recorded a record purchase closed loan origination volume and generated net revenue of $2.7 billion and an adjusted revenue of $2.8 billion in the second quarter.

“Our mortgage, real estate, auto, and personal finance brands, powered by the tech-driven Rocket platform, delivered a strong second quarter,” says Jay Farner, vice chairman and CEO of Rocket Co. “Our record purchase mortgage volume puts us well on the path to our goal of becoming the largest retail home purchase lender in the nation by the end of 2023.

“That strong momentum will carry us into the second half of the year, as we expect our 2021 mortgage origination closed loan volume to exceed 2020’s record performance of $320 billion. Our newer businesses Rocket Homes, Rocket Auto, and solar program leverage our existing platform and represent significant growth opportunities.”

The company delivered net income of $1 billion and an adjusted net income of $0.9 billion. Mortgage origination closed loan volume generated $84 billion and a gain on sale margin of 2.78 percent. The volume more than double the second quarter of 2019, and more than the entire year of 2018.

Amrock, the title insurance services, property valuation, and settlement service company owned by Rocket was the main driver of $376.4 million in other income. The company generated 260,300 closings, up 193 percent from the second quarter of 2019.

Rocket Mortgage, was named No. 1 in the nation for client satisfaction in mortgage servicing by J.D. Power in 2021, the eight consecutive year it has received the client feedback-based award. It also posted a 90 percent client retention rate over 12 months that ended June 30, 2021.

Rocket Homes, the tech-based real estate service provider and home search site owned by Rocket, grew its home search tool, and now includes listings from all 50 states. RocketHomes.com, the home search site, reached nearly 2 million average unique monthly visitors.

The real estate agent referral network drove a record $2 billion in real estate transaction value, which represents the value of homes purchased and sold through Rocket’s real estate network. In addition, approximately 70 percent of Rocket Homes closings involve both an agent in the Rocket Homes real estate agent network and Rocket Mortgage.

Rocket Auto, the automotive retail marketplace owned by the company, facilitated the sale of 15,600 units, up more than 9,200 units or 143 percent compared to the second quarter of 2020.

It also recently announced Rocket Cloud Force to finance solar energy to make American homes more energy efficient. The solar industry in the U.S is growing, with more than 2 million solar installations in the U.S., reaching a record high in 2020. By 2030, the solar market is expected to quadruple, with 1 in 8 American homes expected to adopt solar, according to a 2021 joint study by the Solar Energy Industries Association and Wood Mackenzie.

Rocket will extend its technology, data, and client experience to simplify the solar experience for homeowners and connect homeowners with simple, digital financing solutions. The pilot program will begin in the fourth quarter of 2021, and officially launch to the public in early 2022.

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