Detroit’s Rocket Cos., a holding company consisting of real estate, mortgage, and eCommerce businesses, announced its first quarter results, highlighting its highest-ever purchase application volume, success in its Rocket Auto division, and high closing levels with Amrock.
“This was the sixth consecutive quarter where our team was able to double the company’s home loan volume year-over-year,” says Jay Farner, vice chairman and CEO of Rocket Cos.
Total revenue for the quarter was nearly $4.6 billion, up from nearly $1.4 billion for the same quarter last year. Net income was $2.8 billion, up from $99 million. Adjusted revenue was $4 billion compared to $2.1 billion, adjusted net income was $1.8 billion compared to $656 million, and adjusted earnings before interest, taxes, depreciation, and amortization of $2.4 billion compared to $922 million.
March produced the company’s highest-ever purchase application volume, while Rocket Auto increased the number of vehicles it sold by 65 percent compared to the same time last year. Amrock achieved its highest level of closings in company history with an increase of 110 percent from the first quarter of 2020, and Rocket Homes increased the average monthly visitors on its website by more than 300 percent versus the first quarter last year.
Generated closed loan origination volume was $103.5 billion, and net rate lock volume was $95.1 billion, which represented improvements of 100 percent and 70 percent, respectively, year-over-year.
The company also saw an increased gain on sale margin by 49 basis points year-over-year to 3.74 percent.
Amrock, the company’s title insurance services, property valuation, and settlement services company, generated 348,800 closings. This record volume was the primary driver for the increase in other income in the first quarter to $466.1 million from $243.8 million the previous year.
Rocket Auto, the company’s automotive retail marketplace, facilitated the sale of 13,600 auto units, up more than 5,300 units, or 65 percent compared to the first quarter of 2020. Gross merchandise value for the first quarter was $360 million, which represents an annualized run rate of more than $1 billion.
The Rocket Cos. platform generated more than 60 million unique visitors during the first quarter, an increase of 72 percent year-over-year. Average unique monthly visitors for RocketHomes.com, its home search experience, increased more than 300 percent year-over-year.
Its net client retention rate was 91 percent over the 12 months ended March 31. There is a strong correlation between this metric and client lifetime value.
More than 45,000 real estate agents have signed up for Rocket Pro Insight, up from 14,000 at Dec. 31. The platform provides agents with real-time updates on the status of their clients’ mortgages and the ability to assist in the mortgage process.
The company also rolled out Rocket Logic, a workflow technology, beyond the initial pilot group. During the first quarter, more than one-third of the company’s loan volume was processed through Rocket Logic, contributing to overall turn times decreasing more than 30 percent in the first quarter compared to the previous year.
Rocket Auto recently formed a partnership with AutoFi, a software provider in the automotive retail industry with a network of more than 2,000 dealership partners. The new relationship, paired with Rocket Auto’s platform, will enable a full automotive point of sale solution including finance and insurance.
In March, the Gilbert Family Foundation and the Rocket Community Fund made a joint 10-year, $500 million commitment to build economic opportunity and equity in Detroit.
The MacArthur Foundation awarded the company’s partner, Community Solutions, a $100 million grant to fund the Built for Zero initiative, which is designed to end veteran and chronic homelessness. Rocket Mortgage has been a national partner of Built for Zero since 2018.
In the second quarter, the company expects a closed loan volume between $82.5 billion and $87.5 billion. Net rate lock volume is expected to be between $81.5 billion and $88.5 billion. Gain on sale margins are expected to between 2.65 percent and 2.95 percent.
In related news, the city of Detroit, Rocket Community Fund, and CHN Housing Partners today announced a $2.2 million investment into a network of six Detroit-based nonprofits that will provide housing and financial stability services to Detroit residents.
The organizations will work together as the Detroit Housing Network and use investment to strengthen and grow services to homeowners including mortgage and financial counseling, property tax foreclosure prevention, home repair assistance, and assistance to low-income households seeking to become homeowners. The network’s goal is to create healthy neighborhoods and advance racial equity in Detroit communities.
CHN, an affordable housing developer and housing service provider, is administering the philanthropic investment from the Rocket Community Fund. CHN focuses on sustainable housing solutions for low-income people and underserved communities.
“By combining the collective resources of established community organizations toward one singular purpose, we have the opportunity to bridge existing inequities and allow Detroiters to access the support they need to experience stable, affordable housing,” says Kevin Nowak, executive director of CHN Housing Partners. “Over time, the Detroit Housing Network will grow to serve Detroit’s high demand for housing-related services.”
The Rocket Community Fund’s investment leverages the City of Detroit Housing and Revitalization Department’s investment of COVID-19 response funds through the federal CARES Act.
Recipients of housing and financial counseling grants are Bridging Communities, Central Detroit Christian CDC, Jefferson East Inc., Matrix Human Services, U SNAP BAC, and Wayne Metro Community Action Agency. The organizations have more than 200 combined years of service to Detroit residents. The network is expected to expand to include additional nonprofit partners later this year.
Detroit residents can contact any of the participating organizations to connect with a housing or financial counselor.
The organizations will help Detroit residents in accessing the city’s Homeowner’s Property Tax Assistance Program, Pay As You Stay, and the 0% Interest Home Repair Loan Program, among other resources.
“We have a number of excellent programs that can help Detroiters stay in their homes or fix up their homes. We just need to do a better job of letting Detroiters know how to access them,” says Detroit Mayor Mike Duggan. “The Rocket Community Fund has been a tremendous partner in our successful efforts to reduce tax foreclosure by 95 percent, and this new program we are launching with their support will make it easier than ever for residents find out about and get the help they need.”
The Rocket Community Fund invested more than $750,000 in the Detroit Housing Network as part of its ongoing 10-year, joint $500 million philanthropic commitment to Detroit announced by Dan and Jennifer Gilbert in March. It will also provide ongoing marketing, technological, and developmental support.
The Detroit Housing Network joins other partnerships in Detroit including Rehabbed and Ready, Make It Home, Neighbor to Neighbor, and the Detroit Tax Relief Fund that have reduced property tax foreclosures, provided renters with the opportunity to own their own home, stabilized property values in target neighborhoods, increased access to repair funding, and will eliminate property tax debt of 20,000 qualified Detroit homeowners.
CHN Housing Partners was founded in 1981.
More information on the program, including locations and contact information, are available here.
The Rocket Community Fund is the philanthropic arm of Rocket Cos.