Rocket Cos. Reports Total Net Revenue of $15.7B for 2020

Detroit-based Rocket Cos. Inc., a holding company that includes Rocket Mortgage, Amrock, Rocket Homes, and Rocket Auto, announced its total net revenue for 2020 grew to $15.7 billion from $5.1 billion in 2019. The company filed for IPO in July 2020 and became a public company on Aug. 6, 2020.
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Rocket Cos., which became a public company in August 2020, reported $15.7 billion in net revenue for 2020. // File photo

Detroit-based Rocket Cos. Inc., a holding company that includes Rocket Mortgage, Amrock, Rocket Homes, and Rocket Auto, announced its total net revenue for 2020 grew to $15.7 billion from $5.1 billion in 2019. The company filed for IPO in July 2020 and became a public company on Aug. 6, 2020.

The company increased net income to $9.4 billion from $900 million in 2019 and adjusted net income to $8.2 billion from $1.3 billion the year before. It generated closed loan origination volume of $320.2 billion and net rate lock volume of $338.7 billion, which represented year-over-year improvements of 121 percent and 123 percent, respectively.

It increased its gain on sale margin by 127 points to 4.46 percent and other income to $1.8 billion from $700 million in 2019.

Rocket Auto, the company’s automotive retail marketplace, facilitated more than $750 million in gross merchandise value of automotive e-commerce transactions during 2020. Rocket Auto facilitated the sale of more than 32,000 auto units in 2020, representing year-over-year unit growth of 61 percent.

In the fourth quarter, the company grew total revenue to $4.7 billion from $1.9 billion year-over-year and adjusted revenue to $4.8 billion from $1.8 billion.

Net income grew to $2.8 billion from $800 million in the fourth quarter, and adjusted net income increased to $2.3 billion from $500 million. Its closed loan origination volume was $107.2 billion and net rate lock volume was $96 billion in the fourth quarter of 2020, which represented improvements of 111 percent and 119, respectively, as compared to the fourth quarter of 2019.

It increased its gain on sale margin by 100 basis points year-over-year to 4.41 percent. Rocket Auto facilitated the sale of 9,400 auto units, up more than 2,000 units compared to the fourth quarter of 2019.

Rocket Homes helped clients with nearly $1.6 billion of real estate transactions during the fourth quarter, and other income increased to $549.9 million from $265.7 million.

“As more and more consumers shift their preferences toward an increasingly digital experience, we are better positioned than ever to provide them with innovative, technology-driven solutions that simplify even the most stressful and complex transactions,” says Jay Farner, vice chairman and CEO of Rocket Cos. “Looking ahead, we will continue to invest in our world-class technology driven solutions that allow us to diversify our scalable platform business model.”

The Rocket Cos. platform generated 153 million unique visitors in 2020, a 61 percent increase from 2019. The company’s partner relationships include more than 25,000 real estate agents, 50,000 mortgage professionals, and 9,000 partners.

The company also launched its national mortgage broker directory and deployed nearly 4,500 new product features over the course of the year.

Rocket Cos. continued work on Built for Zero, a national movement to end veteran and chronic homelessness. It has partnered with more than 80 communities to connect people with permanent supportive housing. It was launched three years ago.

The city of Detroit selected Rocket Cos. to manage all logistics for the city’s COVID-19 vaccination program for residents.

The company expects a closed loan volume between $98 billion and $103 billion compared to $51.7 billion in the first quarter of 2020. Net rate lock volume is expected to be between $88 billion and $95 billion, compared to $56 billion in the first quarter of 2020.

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