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Rocket Mortgage

(Redirected fromQuicken Loans)

Rocket Mortgage, LLC,formerlyQuicken Loans, LLC,is an Americanmortgage lender,headquartered inDetroit, 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 onwholesale fundingto make its loans and uses online applications rather than a branch system.[8]Amrockis 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]

Rocket Mortgage, LLC
FormerlyRock Financial (1985–1999)
Quicken Loans, LLC (1999–2021)
Company typeSubsidiary
Industry
Founded1985;39 years ago(1985)(as Rock Financial)
Founders
HeadquartersOne Campus Martius,
Detroit, Michigan
,
U.S.
Key people
Varun Krishna(CEO), Bill Emerson (COO), Bob Walters (COO)
Products
BrandsRocket Mortgage
RevenueIncreaseUS$15.735 billion(2020)
IncreaseUS$9.532 billion (2020)
IncreaseUS$932 million (2020)
Total assetsIncreaseUS$37.535 billion (2020)
Total equityIncreaseUS$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]

History

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Rock Financialwas founded as a mortgage broker in 1985 byDan Gilbert,Ron Berman, Lindsay Gross, andGary Gilbert.[11][12][13]The company became a mortgage lender in 1988, and in May 1998, Gilbert took Rock Financial public, launching anIPOunderwritten byBear Stearns.[14]

The company started to change course in the late 1990s, shifting from a traditional mortgage provider to an online-focused lender. Traditionally, thehome mortgagebusiness 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

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1999-2004

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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

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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-Aproducts, 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 onGrand Circus Parkand 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 atOne Campus MartiusfacingCampus Martius Parkin Detroit. The company also housed its employees in Downtown Detroit'sFirst National Building,The Qube,Chrysler House,One Woodward Avenue,and1001 Woodward,all owned by Quicken Loans' parent company,Rock Ventures.[22]

2011-2020

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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 downtownWindsor, Ontario.[27][28][29]

On July 7, 2020, Quicken Loans filed paperwork with theU.S. Securities and Exchange Commissionto 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

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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

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2015 - 2020

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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,TechCrunchclaimed 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 of 2020, a patent was filed regarding extracting data sets from external data stores.[44]

J.D. Powernamed 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

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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 theCleveland Cavaliersof theNational Basketball Association(NBA) and theCleveland Monstersof theAmerican Hockey League.[50]The arena, formerly known as the Quicken Loans Arena, changed its name to theRocket Mortgage FieldHouseafter 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

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References

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  1. ^Reindl, JC (February 28, 2024)."Dan Gilbert's businesses shed thousands more jobs".Detroit Free Press.RetrievedJuly 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.Retrieved26 June2023.
  7. ^Pender, Kathleen (2018-02-01)."Quicken Loans tops Wells Fargo to become No. 1 in retail home loans".San Francisco Chronicle.[1]
  8. ^ab"A new foundation".The Economist.ISSN0013-0613.RetrievedJune 3,2016.
  9. ^"Financial Services | Rock Ventures".www.rockventures.com.RetrievedAugust 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.Retrieved2018-03-10.
  11. ^Finkel, Adam (2020-09-24)."Butzel Award Winner Dan Gilbert Reflects on Family, Faith and Philanthropy".thejewishnews.com.Retrieved2024-08-01.
  12. ^abNoble, Breana."Quicken Loans to change name to Rocket Mortgage".The Detroit News.Retrieved2024-05-07.
  13. ^Segal, David (April 13, 2013)."A Missionary's Quest to Remake Motor City".New York Times.Retrieved2016-01-26.
  14. ^Rock Financial Corporation (1998),Form S-1,U.S. Securities and Exchange Commission, p. 81,retrieved2020-12-10
  15. ^Swisher, Kara."Intuit to Acquire Rock Financial".WSJ.Retrieved2024-05-07.
  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 fromthe originalon September 27, 2007.RetrievedAugust 16,2007.
  18. ^abHowes, 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.RetrievedOctober 15,2007.
  20. ^"Quicken lays off 250 in Mich., Ariz., Ohio".The Detroit News.June 20, 2008.Retrieved2008-07-01.
  21. ^abRandolph, Ned (November 2, 2011)."Detroit native Dan Gilbert bets big on the city's rebound".Reuters.Retrieved2012-11-28.
  22. ^Wayland, Michael (October 11, 2011)."Gilbert's glory: 1,500 Quicken Loans employees move to Detroit, help 'transform downtown'".mLive.Retrieved2012-11-28.
  23. ^Morris, Bill (October 18, 2012)."Finally, a Downtown's Upswing".New York Times.Retrieved2012-11-28.
  24. ^"Rock Ventures on the Forbes America's Largest Private Companies List".Forbes.Retrieved2016-08-03.
  25. ^King, R.J. (September 5, 2017)."Quicken Loans Family of Companies Surpasses 17K Employees in Detroit, More to Come".D Business.D Business.Retrieved2017-09-21.
  26. ^"Quicken Loans becomes largest U.S. mortgage lender".Detroit News.Retrieved2018-03-10.
  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.Retrieved2021-01-02.
  32. ^Tompor, Susan (August 6, 2020)."Dan Gilbert's Rocket IPO soars more than 20% in trading".Detroit Free Press.RetrievedJanuary 8,2021.
  33. ^Grzelewski, Jordyn (July 7, 2020)."Quicken Loans files paperwork for IPO under name Rocket Companies".RIS Media.RetrievedJanuary 8,2021.
  34. ^"Quicken Loans Mortgage Originations".RetrievedDecember 2,2021.
  35. ^abcReindl, J. C."UWM CEO issues ultimatum, escalates war against Rocket Companies".Detroit Free Press.Retrieved2024-05-09.
  36. ^"Quicken Loans will officially rebrand as Rocket Mortgage".Inman.Retrieved22 August2021.
  37. ^Swanson, Brena (November 24, 2015)."Game changer? Quicken Loans takes mortgage lending fully digital".Housing Wire.RetrievedJanuary 8,2021.
  38. ^"This Could Be The Mortgage Industry's iPhone Moment".Tech Crunch.November 24, 2015.RetrievedJanuary 8,2021.
  39. ^abcPrevost, Lisa (2015-12-04)."Mortgage Approval Entirely Online".The New York Times.ISSN0362-4331.Retrieved2024-05-21.
  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.RetrievedJanuary 8,2021.
  42. ^Reindl, J. C."Rocket Companies and United Wholesale Mortgage shed thousands of jobs".Detroit Free Press.Retrieved2024-05-14.
  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.RetrievedJanuary 8,2021.
  46. ^Marous, Jim."Rocket to Offer Financial Institutions Mortgage-as-a-Service".The Financial Brand.Retrieved14 May2024.
  47. ^Torne, Richard (2021-09-17)."Rocket subsidiary hits eClosing milestone".MPA Magazine.Retrieved2022-03-14.
  48. ^"Rocket Mortgage and Amrock Continue to Set Bar for the Nation in Digital Closings Throughout 2020".PR Newswire.2020-11-19.Retrieved2022-03-14.
  49. ^abcdeMarous, 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.Retrieved2024-06-13.
  51. ^Fedor, Chris (April 9, 2019)."Quicken Loans Arena officially renamed Rocket Mortgage Fieldhouse: 'Next chapter in evolution of incredible facility".Cleveland Plain Dealer.RetrievedJanuary 8,2021.
  52. ^ab"The Largest Mortgage Lenders in the U.S."The Ascent.April 2, 2024.RetrievedMay 29,2024.
  53. ^"Rocket Mortgage Launches National Campaign To Address Urgent National Crisis Of Veteran Homelessness".joinbuiltforzero.org.November 28, 2019.RetrievedJanuary 8,2021.
  54. ^Johncox, Cassidy (May 20, 2020)."New initiative to provide 'digital access' to all Detroiters within next 5 year".WDIV TV.RetrievedJanuary 8,2021.
  55. ^"Changing the Course".PGA Tour.RetrievedJanuary 8,2021.
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