Rocket Mortgage

Rocket Mortgage, LLC
FormerlyRock Financial (1985–1999)
Quicken Loans, LLC (1999–2021)
Company typeSubsidiary
Industry
Founded1985; 40 years ago (1985) (as Rock Financial)
Founders
HeadquartersOne Campus Martius, ,
U.S.
Key people
Varun Krishna(CEO), Bill Emerson (COO), Bob Walters (COO)
Products
BrandsRocket Mortgage
RevenueIncrease US$15.735 billion (2020)
Increase US$9.532 billion (2020)
Increase US$932 million (2020)
Total assetsIncrease US$37.535 billion (2020)
Total equityIncrease US$7.882 billion (2020)
OwnerDan Gilbert (93.2%)
Number of employees
14,700 (2024) [1]
ParentRocket Companies Inc.
Website
Footnotes / references
[2][3][4][5][6]

Rocket Mortgage, LLC, formerly Quicken Loans, LLC, is an American mortgage lender, headquartered in Detroit, Michigan. In January 2018, Rocket Mortgage became the largest overall retail lender in the U.S., and it was also the largest online retail mortgage lender.[7] Rocket Mortgage relies on wholesale funding to make its loans and uses online applications rather than a branch system.[8] Amrock is also part of the Rocket Mortgage Family of Companies.[9] The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017.[10]

History

Rock Financial was founded as a mortgage broker in 1985 by Dan Gilbert, Ron Berman, Lindsay Gross, and Gary Gilbert.[11][12][13] The company became a mortgage lender in 1988, and in May 1998, Gilbert took Rock Financial public, launching an IPO underwritten by Bear Stearns.[14]

The company started to change course in the late 1990s, shifting from a traditional mortgage provider to an online-focused lender. Traditionally, the home mortgage business in America has been fragmented due to varying regulations in each state and locality. Gilbert challenged this orthodoxy, however, by offering loan applications online that were reviewed by experts versed in the regulations of each region but who were located in a central headquarters.[8]

Quicken Loans

1999-2004

In October 1999, almost a year and a half after Rock Financial's 1998 IPO, Intuit Inc. agreed to buy the company at a valuation of $370 million.[15] The name changed to Quicken Loans. In 2002, Dan Gilbert and a group of private investors bought the company back.[12]

In 2004, Quicken Loans became a defendant in a class action lawsuit. This was filed against the company on behalf of employees who had worked as loan consultants and wanted overtime pay. In 2011, a jury ruled in favor of Quicken, ruling that the positions were exempt from overtime and also that the employees worked “zero hours over 40.”[16]

2006-2010

In August 2007, the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response, Quicken Loans discontinued second mortgages, home equity lines of credit, Alt-A products, and deferred interest loans.[17]

On November 12, 2007, Founder and chairman, Dan Gilbert announced a development agreement with the city of Detroit to move the company headquarters downtown, consolidating suburban offices.[18] The construction sites reserved for development by the agreement included the location of the former Statler Hotel on Grand Circus Park and the former Hudson's location.[18]

Former logo of Quicken Loans

The company saw a small drop in employment levels following the 2008 financial crisis.[19][20]

Quicken Loans moved into its downtown Detroit headquarters in August 2010.[21] The initial move brought 1,700 employees to the city.[21]

In 2009, Quicken was headquartered at One Campus Martius facing Campus Martius Park in Detroit. The company also housed its employees in Downtown Detroit's First National Building, The Qube, Chrysler House, One Woodward Avenue, and 1001 Woodward, all owned by Quicken Loans' parent company, Rock Ventures.[22]

2011-2020

In 2014, Quicken Loans grew to be the 2nd largest mortgage lender in the United States, and was the nation's largest online mortgage lender.[23] In 2016, the company employed 24,000 people nationwide, with approximately 17,000 working in the city of Detroit by 2017, making it Detroit's largest employer, minority employer, and taxpayer.[24] [25]

In January 2018, Quicken Loans became the nation's largest mortgage lender.[26]

On October 15, 2018, Quicken Loans announced that it was expanding into Canada by opening a tech center in downtown Windsor, Ontario.[27][28][29]

On July 7, 2020, Quicken Loans filed paperwork with the U.S. Securities and Exchange Commission to start the process of taking the company public under the name Rocket Companies.[30]

On August 6, 2020, Rocket Companies, Inc. went public on the New York Stock Exchange under the symbol RKT,[31] raising $1.8 billion.[32][33] At the end of 2020, Rocket Companies originated over 1.1 million loans valued at $313 billion,[34] at that time these figures were almost twice that of the next largest lender in the U.S., United Wholesale Mortgage, which is also headquartered near Detroit.[citation needed]

2021 - present

In January 2021, Quicken Loans launched a new national mortgage broker directory on RocketMortgage.com.[35] This was part of the company's effort to help brokers grow their businesses and provide more options for home buyers.[35]

In March, the company was the number one mortgage lender by overall business in the United States.[35]

On May 12, 2021, Quicken Loans announced that it would be rebranded to Rocket Mortgage, by July 31, 2021.[36]<

Rocket Mortgage

2015 - 2020

In 2015, Quicken Loans created Rocket Mortgage, the first lender to perform electronic closings (eClosings) in all 50 states.[37] When the platform was launched, TechCrunch claimed it was the mortgage industry's “iPhone moment” and compared the application process to TurboTax.[38] The Rocket Mortgage platform uses data input by customers to pull information such as property taxes, homeowner's insurance, and income history.[39] With this system, customers no longer have to manually upload documents.[39] Once the platform has all needed data, it suggests customizable loan options.[39]

Rocket owns three patents around verifying client data, filtering it and sourcing it, and extracting it from external parties.[40] In its first full year, the Rocket Mortgage platform funded $7 billion in closed loans.[41]

In 2018, Rocket Companies surpassed Wells Fargo as the number one mortgage lender in the United States.[42]

In 2019, Rocket Mortgage filed another patent for data set selection using multi-source constraints.[43] In October 2020, a patent was filed regarding extracting data sets from external data stores.[44]

J.D. Power named Rocket Mortgage number one in the nation for client satisfaction in primary mortgage origination in 2020, the 11th consecutive year either Rocket Mortgage or Quicken Loans earned the recognition.[45] That year the company doubled its mortgage originations.[46]

2021-present

As of 2021, Rocket subsidiary Amrock has fulfilled more than 1 million digital mortgage closings.[47][48] While Rocket Mortgage, during the year 2021,[49] grew its mortgage originations by more than 30%, continuing to surpass Wells Fargo and JPMorgan Chase.[49]

Rocket sponsors the Rocket Mortgage FieldHouse, an arena located in downtown Cleveland, Ohio. It is the home of the Cleveland Cavaliers of the National Basketball Association (NBA) and the Cleveland Monsters of the American Hockey League.[50] The arena, formerly known as the Quicken Loans Arena, changed its name to the Rocket Mortgage FieldHouse after the completion of the arena's renovation and expansion in 2019.[51]

In 2022, Rocket Mortgage and Q2 announced a new partnership to support homebuyers.[49] Under the partnership, banks and credit unions can offer customers digital access to Rocket Mortgage - integrated on the Q2 digital banking platform - and Rocket Mortgage then takes over all actions related to loans and servicing.[49] The new digital offering simplifies the mortgage process and is offered at no cost to the financial institution.[49]

At the end of 2022, Rocket Mortgage originated 464,363 mortgages worth $127.6 billion.[52] United Wholesale Mortgage, the second largest mortgage company, originated 348,415 mortgages worth $127.5 billion.[52]

Rocket Mortgage has launched several initiatives that support its home communities of Detroit, Cleveland, Charlotte, and Phoenix, including initiatives focused on ending veteran homelessness[53] and supporting digital literacy.[54][55]

See also

References

  1. ^ Reindl, JC (February 28, 2024). "Dan Gilbert's businesses shed thousands more jobs". Detroit Free Press. Retrieved July 15, 2024.
  2. ^ "Rocket Companies, Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  3. ^ "Rocket Companies, Inc. 2020 Schedule 14A". U.S. Securities and Exchange Commission.
  4. ^ "Our Companies".
  5. ^ "Rocket Companies to Acquire Truebill, Adding Rapidly Expanding Financial Empowerment FinTech to the Rocket Platform".
  6. ^ "Our Leadership". Rocket Companies. Retrieved 26 June 2023.
  7. ^ Pender, Kathleen (2018-02-01). "Quicken Loans tops Wells Fargo to become No. 1 in retail home loans". San Francisco Chronicle.[1]
  8. ^ a b "A new foundation". The Economist. ISSN 0013-0613. Retrieved June 3, 2016.
  9. ^ "Financial Services | Rock Ventures". www.rockventures.com. Retrieved August 19, 2016.
  10. ^ "Quicken Loans, the Nation's Largest Mortgage Lender, Among FORTUNE's Top-15 Best Places to Work in America | Quicken Loans Pressroom". Quicken Loans Pressroom. 2018-02-15. Retrieved 2018-03-10.
  11. ^ Finkel, Adam (2020-09-24). "Butzel Award Winner Dan Gilbert Reflects on Family, Faith and Philanthropy". thejewishnews.com. Retrieved 2024-08-01.
  12. ^ a b Noble, Breana. "Quicken Loans to change name to Rocket Mortgage". The Detroit News. Retrieved 2024-05-07.
  13. ^ Segal, David (April 13, 2013). "A Missionary's Quest to Remake Motor City". New York Times. Retrieved 2016-01-26.
  14. ^ Rock Financial Corporation (1998), Form S-1, U.S. Securities and Exchange Commission, p. 81, retrieved 2020-12-10
  15. ^ Swisher, Kara. "Intuit to Acquire Rock Financial". WSJ. Retrieved 2024-05-07.
  16. ^ Duggan, Daniel (March 17, 2011). "Dan Gilbert: Quicken's triumph in overtime trial "a victory for right over wrong"". Crains Detroit Business.
  17. ^ "Gilbert: Mortgage squeeze could be blessing for Quicken". The Detroit Free Press. August 16, 2007. Archived from the original on September 27, 2007. Retrieved August 16, 2007.
  18. ^ a b Howes, Daniel (November 12, 2007).Quicken moving to downtown Detroit.The Detroit News. Retrieved on November 12, 2007.
  19. ^ "Gilbert: Housing slump hits Quicken". The Detroit News. October 15, 2007. Retrieved October 15, 2007.
  20. ^ "Quicken lays off 250 in Mich., Ariz., Ohio". The Detroit News. June 20, 2008. Retrieved 2008-07-01.
  21. ^ a b Randolph, Ned (November 2, 2011). "Detroit native Dan Gilbert bets big on the city's rebound". Reuters. Retrieved 2012-11-28.
  22. ^ Wayland, Michael (October 11, 2011). "Gilbert's glory: 1,500 Quicken Loans employees move to Detroit, help 'transform downtown'". mLive. Retrieved 2012-11-28.
  23. ^ Morris, Bill (October 18, 2012). "Finally, a Downtown's Upswing". New York Times. Retrieved 2012-11-28.
  24. ^ "Rock Ventures on the Forbes America's Largest Private Companies List". Forbes. Retrieved 2016-08-03.
  25. ^ King, R.J. (September 5, 2017). "Quicken Loans Family of Companies Surpasses 17K Employees in Detroit, More to Come". D Business. D Business. Retrieved 2017-09-21.
  26. ^ "Quicken Loans becomes largest U.S. mortgage lender". Detroit News. Retrieved 2018-03-10.
  27. ^ "New Quicken Loans tech centre a Windsor beachhead, says Rock Ventures principal". Windsor Star. October 31, 2018.
  28. ^ "Detroit businessman Gilbert, Quicken Loans moving into Windsor". Windsor Star. October 15, 2018.
  29. ^ "Local tech companies welcome Quicken Loans as potential game changer". Windsor Star. October 16, 2018.
  30. ^ "Quicken Loans files paperwork for IPO under name Rocket Companies".
  31. ^ Noble, Breana (2020-08-05). "Rocket Companies IPO offers 100 million shares at $18 each – far below target". The Detroit News. Retrieved 2021-01-02.
  32. ^ Tompor, Susan (August 6, 2020). "Dan Gilbert's Rocket IPO soars more than 20% in trading". Detroit Free Press. Retrieved January 8, 2021.
  33. ^ Grzelewski, Jordyn (July 7, 2020). "Quicken Loans files paperwork for IPO under name Rocket Companies". RIS Media. Retrieved January 8, 2021.
  34. ^ "Quicken Loans Mortgage Originations". Retrieved December 2, 2021.
  35. ^ a b c Reindl, J. C. "UWM CEO issues ultimatum, escalates war against Rocket Companies". Detroit Free Press. Retrieved 2024-05-09.
  36. ^ "Quicken Loans will officially rebrand as Rocket Mortgage". Inman. Retrieved 22 August 2021.
  37. ^ Swanson, Brena (November 24, 2015). "Game changer? Quicken Loans takes mortgage lending fully digital". Housing Wire. Retrieved January 8, 2021.
  38. ^ "This Could Be The Mortgage Industry's iPhone Moment". Tech Crunch. November 24, 2015. Retrieved January 8, 2021.
  39. ^ a b c Prevost, Lisa (2015-12-04). "Mortgage Approval Entirely Online". The New York Times. ISSN 0362-4331. Retrieved 2024-05-21.
  40. ^ United States 10,158,650, "Token verification from incremental inputs", published December 18, 2018 
  41. ^ Lane, Ben (March 7, 2017). "Here's how much Rocket Mortgage helped Quicken Loans in 2016". Housing Wire. Retrieved January 8, 2021.
  42. ^ Reindl, J. C. "Rocket Companies and United Wholesale Mortgage shed thousands of jobs". Detroit Free Press. Retrieved 2024-05-14.
  43. ^ United States 10,198,400, "Data set selection using multi-source constraints", published February 5, 2019 
  44. ^ United States 10,795,966, "Extracting data sets from external data stores", published October 6, 2020 
  45. ^ "Rocket Mortgage Ranked #1 in the U.S. for Client Satisfaction in Mortgage Origination by J.D. Power for the 11th Straight Year". PR Newswire. November 9, 2020. Retrieved January 8, 2021.
  46. ^ Marous, Jim. "Rocket to Offer Financial Institutions Mortgage-as-a-Service". The Financial Brand. Retrieved 14 May 2024.
  47. ^ Torne, Richard (2021-09-17). "Rocket subsidiary hits eClosing milestone". MPA Magazine. Retrieved 2022-03-14.
  48. ^ "Rocket Mortgage and Amrock Continue to Set Bar for the Nation in Digital Closings Throughout 2020". PR Newswire. 2020-11-19. Retrieved 2022-03-14.
  49. ^ a b c d e Marous, Jim (11 August 2011). "Rocket to Offer Financial Institutions Mortgage-as-a-Service". The Financial Brand.
  50. ^ "Cleveland Cavaliers and Rocket Mortgage Announce Expanded Partnership, New Experiences to Connect Fans to Non-Stop Action". www.nba.com. Retrieved 2024-06-13.
  51. ^ Fedor, Chris (April 9, 2019). "Quicken Loans Arena officially renamed Rocket Mortgage Fieldhouse: 'Next chapter in evolution of incredible facility". Cleveland Plain Dealer. Retrieved January 8, 2021.
  52. ^ a b "The Largest Mortgage Lenders in the U.S." The Ascent. April 2, 2024. Retrieved May 29, 2024.
  53. ^ "Rocket Mortgage Launches National Campaign To Address Urgent National Crisis Of Veteran Homelessness". joinbuiltforzero.org. November 28, 2019. Retrieved January 8, 2021.
  54. ^ Johncox, Cassidy (May 20, 2020). "New initiative to provide 'digital access' to all Detroiters within next 5 year". WDIV TV. Retrieved January 8, 2021.
  55. ^ "Changing the Course". PGA Tour. Retrieved January 8, 2021.
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