Rocket Mortgage

Last updated
Rocket Mortgage, LLC
FormerlyRock Financial (1985–1999)
Quicken Loans, LLC (1999–2021)
Company type Public company
Industry
Founded1985;39 years ago (1985) (as Rock Financial)
Founders
Headquarters One Campus Martius,
Detroit, Michigan
,
U.S.
Key people
Varun Krishna(CEO), Bill Emerson (COO), Bob Walters (COO)
Products
BrandsRocket Mortgage
RevenueIncrease2.svg US$15.735 billion (2020)
Increase2.svg US$9.532 billion (2020)
Increase2.svg US$932 million (2020)
Total assets Increase2.svg US$37.535 billion (2020)
Total equity Increase2.svg US$7.882 billion (2020)
Owner Dan Gilbert (93.2%)
Number of employees
24,000 (2020)
Parent Rocket Companies, Inc.
Subsidiaries Rocket Mortgage, Amrock, Amrock Title Insurance Company, Lendesk, Edison Financial, Rocket Homes, ForSaleByOwner.com, Rocket Loans, Rocket Auto, Core Digital Media, LowerMyBills.com, Rock Connections, Rocket Central, Rocket Innovation Studio, Rocket Money (Truebill)
Website
Footnotes /references
[1] [2] [3] [4] [5]

Rocket Mortgage, LLC, formerly Quicken Loans, LLC, is an American mortgage lender, headquartered in Detroit, Michigan. In January 2018, the company became the largest overall retail lender in the U.S., it was also the largest online retail mortgage lender in 2018. [6] In the third quarter of 2022, the title of largest overall lender was relinquished to United Wholesale Mortgage Company. [7] Rocket Mortgage relies on wholesale funding to make its loans and uses online applications rather than a branch system. [8] Amrock and One Reverse Mortgage are 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]

Contents

History

Rock Financial was founded in 1985 by Dan Gilbert, Lindsay Gross, and Gary Gilbert. [11] In May 1998, Gilbert took Rock Financial public, launching an IPO underwritten by Bear Stearns. [12]

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 December 1999, a year and a half after the IPO, Intuit Inc. (makers of QuickBooks, TurboTax, and Quicken) purchased Rock Financial Corp. for $532M. The company was renamed Quicken Loans. [13]

In June 2002, two and a half years after selling the company, Dan Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for $64M. [13]

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 for any Quicken office within the past three years. The claimants alleged that Quicken violated the Fair Labor Standards Act (FLSA) by failing to pay the plaintiffs overtime for working beyond a 40-hour work week. Quicken Loans denied these claims, and said it is not aware of any such violations of the FLSA. [14]

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. [15]

On November 12, 2007, CEO Dan Gilbert announced a development agreement with the city of Detroit to move the company headquarters downtown, consolidating suburban offices. [16] 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. [16]

Former logo of Quicken Loans QuickenLoanslogo2019.png
Former logo of Quicken Loans

The company saw a small drop in employment levels following the 2008 financial crisis. [17] [18]

Since 2009, Quicken has been headquartered at One Campus Martius facing Campus Martius Park in Detroit. The company also houses 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. [19]

Quicken Loans moved into its downtown headquarters in August 2010. The initial move brought 1,700 employees to the city. [20]

2011-2020

On March 17, 2011, a federal jury found in favor of Quicken Loans, ending the seven-year-old lawsuit. The decision means that Quicken Loans is not obligated to pay overtime payments to the plaintiffs. [14]

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. [21] 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. [22] [23]

In January 2018, Quicken Loans became the nation's largest mortgage lender. [24]

In August 2018, Quicken Loans parent Rock Holding acquired Dictionary.com and Thesaurus.com from IAC. [25]

On October 15, 2018 Quicken Loans announced that it was expanding into Canada by opening a tech center across the river in downtown Windsor, Ontario. [26] [27] [28]

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. [29]

On August 6, 2020, Rocket Companies, Inc. went public under the symbol RKT, [30] raising $1.8 billion. [31] [32] At the end of 2020, Rocket Companies originated over 1.1 million loans valued at $313 billion, [33] 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 ] For the year ending in 2022, that difference had closed to just 5.7 billion in value and approximately 5% of each other.

2021 - present

On May 12, 2021 Quicken Loans announced that it would be rebranded to Rocket Mortgage, by July 31, 2021. [34]

Rocket Mortgage

2015 - 2020

In 2015, Quicken Loans created Rocket Mortgage, the first lender to perform electronic closings (eClosings) in all 50 states. [35] When the platform was launched, TechCrunch claimed it was the mortgage industry's “iPhone moment” and compared the application process to TurboTax. [36] Rocket owns three patents around verifying client data, filtering it and sourcing it, and extracting it from external parties. [37] In its first full year, Rocket funded $7 billion in closed loans. [38]

In 2019, Rocket Mortgage filed another patent for data set selection using multi-source constraints. [39] The most recent patent was filed in October 2020 regarding extracting data sets from external data stores. [40]

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. [41] As of 2021, Rocket subsidiary Amrock has fulfilled more than 1 million digital mortgage closings. [42] [43]

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. 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. [44]

Rocket Mortgage has launched several initiatives that support its home communities of Detroit, Cleveland, Charlotte, and Phoenix, including veteran homelessness [45] and digital literacy. [46] [47]

See also

Related Research Articles

<span class="mw-page-title-main">Rocket Mortgage FieldHouse</span> Arena in downtown Cleveland, Ohio, US

Rocket Mortgage FieldHouse is a multi-purpose arena in Cleveland, Ohio. The building is the home of the Cleveland Cavaliers of the National Basketball Association (NBA) and the Cleveland Monsters of the American Hockey League (AHL). It also serves as a secondary arena for Cleveland State Vikings men's and women's basketball.

<span class="mw-page-title-main">Wolstein Center</span> Indoor arena in Cleveland, Ohio, United States

The Bert L. and Iris S. Wolstein Center is a 13,610-seat indoor arena located in downtown Cleveland, Ohio, United States, on the campus of Cleveland State University (CSU). It is home to the Cleveland State Vikings men's and women's basketball teams and the Cleveland Charge of the NBA G League. It was also the former home of the Cleveland Crunch and Cleveland Force of the NPSL and MISL. The building opened in 1991 as a replacement for Woodling Gym and was known until 2005 as the CSU Convocation Center. It is named for Bert Wolstein, a Cleveland area real estate developer, former owner of the Force, and CSU alumnus, and his wife Iris. The main arena is known as Henry J. Goodman Arena - named for a businessman and former chairman of the CSU Board of Trustees.

<span class="mw-page-title-main">Gateway Sports and Entertainment Complex</span> Public building in downtown Cleveland, Ohio, USA

The Gateway Sports and Entertainment Complex is an entertainment complex located in downtown Cleveland, Ohio. It opened in 1994 and is owned by the city of Cleveland and Cuyahoga County and is managed by the Gateway Economic Development Corporation, a non-profit group with board members who are appointed by county and city leaders.

<span class="mw-page-title-main">Fifth Third Bank</span> American bank holding company

Fifth Third Bank, the principal subsidiary of Fifth Third Bancorp, is an American bank holding company headquartered in Cincinnati, Ohio. Fifth Third is one of the largest consumer banks in the Midwestern United States.

<span class="mw-page-title-main">PNC Financial Services</span> Major bank based in Pittsburgh

The PNC Financial Services Group, Inc. is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 27 states and the District of Columbia, with 2,629 branches and 9,523 ATMs. PNC Bank is on the list of largest banks in the United States by assets and is one of the largest banks by number of branches, deposits, and number of ATMs.

<span class="mw-page-title-main">Ally Financial</span> American financial services company

Ally Financial Inc. is a bank holding company organized in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan. The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and other related financing services such as installment sale and lease agreements.

<span class="mw-page-title-main">Dan Gilbert</span> American businessman (born 1962)

Daniel Gilbert is an American billionaire, businessman, and philanthropist. He is the co-founder and majority owner of Rocket Mortgage, founder of Rock Ventures, and owner of the National Basketball Association's Cleveland Cavaliers. Gilbert owns several sports franchises, including the American Hockey League's Cleveland Monsters, and the NBA G League's Cleveland Charge. He operates the Rocket Mortgage FieldHouse in Cleveland, Ohio, home to the Cavaliers and Monsters. As of January 2023, Forbes estimated his net worth at US$18.3 billion.

<span class="mw-page-title-main">One Campus Martius</span> Building in downtown Detroit, Michigan, United States

One Campus Martius is a building located in downtown Detroit, Michigan. It began construction in 2000 and was finished in 2003. It has seventeen floors in total, fifteen above-ground, and two below-ground, and has 1,088,000 square feet (100,000 m2) of office space. The high-rise was built as an office building with a restaurant, retail units, space for Compuware and a fitness center, as well as an atrium. The building now has Rocket Mortgage, Microsoft, Meridian Health, Plante Moran and Compuware as its major tenants.

<span class="mw-page-title-main">Economy of metropolitan Detroit</span>

The metropolitan area surrounding and including Detroit, Michigan, is a ten-county area with a population of over 5.9 million, a workforce of 2.6 million, and about 347,000 businesses. Detroit's six-county Metropolitan Statistical Area has a population of about 4.3 million, a workforce of about 2.1 million, and a gross metropolitan product of $200.9 billion. Detroit's urban area has a population of 3.9 million. A 2005 PricewaterhouseCoopers study estimated that Detroit's urban area had a gross domestic product of $203 billion.

Gary Gilbert is an American film producer and businessman. He is the founder and CEO of Gilbert Films, a media production and financing company based in Los Angeles, California. He is also a co-founder of Rocket Mortgage, as well as a co-owner of the Cleveland Cavaliers, NBA team.

Amrock LLC, formerly Title Source, Inc., is an American provider of title insurance, property valuations and settlement services. It is a wholly owned subsidiary of Rocket Mortgage, headquartered in Detroit, Michigan.

Black Knight, Inc. is an American corporation that provides integrated technology, services, data and analytics to the mortgage lending, servicing and real estate industries, as well as the capital and secondary markets. Black Knight is also known for its monthly benchmark data reports: Mortgage Monitor, a month-end analysis of mortgage performance statistics derived from Black Knight's loan-level database representing the majority of the national mortgage market; and Originations Market Monitor, the industry's earliest and most comprehensive view of single-family residential mortgage originations based on daily rate lock data from Black Knight's Optimal Blue PPE. In 2023, Intercontinental Exchange acquired the company for $11.7 billion.

PennyMac Financial Services, Inc. is an American residential mortgage company headquartered in Westlake Village, California. The company's business focuses on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. PennyMac operates through two subsidiaries: PennyMac Loan Services, LLC and PNMAC Capital Management, LLC. The latter manages the PennyMac Mortgage Investment Trust, a mortgage REIT.

<span class="mw-page-title-main">Rock Ventures</span> Holding company for businessman Dan Gilbert

Rock Ventures LLC is the holding company for businessman Dan Gilbert's portfolio of companies, investments, and real estate. It is based in Detroit, Michigan and is also engaged in community development in both Detroit and Cleveland, Ohio. Its over 110 affiliated companies include the Cleveland Cavaliers, Hollywood Casino at Greektown, and Rocket Mortgage.

Rapid Finance is a technology-powered financial services company that provides working capital to small and mid-sized businesses in the United States. As a sister company of Rocket Mortgage, it offers small and medium business loan programs for business owners in a variety of industries and categories. With over US$1 billion funded, it is the 4th largest online small business lender in the United States. The company claims that no single business category accounts for more than 25% of its revenues.

Credible Labs Inc., commonly known as Credible, is a financial technology company headquartered in San Francisco. The company also does business through its subsidiary Credible Operations, Inc. Its online marketplace offers consumers the ability to compare and refinance loans, mortgages, and other financial products from lenders. Credible became a subsidiary of Fox Corporation in 2019. In December 2021, Credible acquired digital insurance platform Young Alfred, adding various kinds of insurance including home, auto, and pet to its platform.

Jay Farner is an American businessman and investor. He is the Founder and CEO of Ronin Capital Partners, a venture capital firm. Previously, Jay was the Vice Chairman and chief executive officer of Rocket Companies, which includes Rocket Mortgage, the nation's largest retail mortgage lender. Jay was also the CEO of Rock Holdings incorporated.

<span class="mw-page-title-main">United Wholesale Mortgage</span> Mortgage lender

United Wholesale Mortgage (UWM), formerly United Shore Financial Services, is an American wholesale mortgage lender headquartered in Pontiac, Michigan. Underwriting loans for independent brokers, UWM is the largest wholesale mortgage lender in the United States.

Edi Demaj is a Kosovan-American serial entrepreneur based in the Detroit metropolitan area. He is best known for being involved in the development of Detroit as technology hub by founding a number of technology companies, including Rocket Fiber, a high speed ISP, and KODE Labs, a company providing cloud-based building automation software.

<span class="mw-page-title-main">Mat Ishbia</span> American businessman and NBA team owner

Mathew Randall Ishbia is an American billionaire businessman who is CEO and chairman of mortgage lender United Wholesale Mortgage. He is the majority owner of the Phoenix Suns of the NBA and Phoenix Mercury of the WNBA alongside his older brother, Justin.

References

  1. ↑ "Rocket Companies, Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ↑ "Rocket Companies, Inc. 2020 Schedule 14A". U.S. Securities and Exchange Commission.
  3. ↑ "Our Companies".
  4. ↑ "Rocket Companies to Acquire Truebill, Adding Rapidly Expanding Financial Empowerment FinTech to the Rocket Platform".
  5. ↑ "Our Leadership". Rocket Companies. Retrieved 26 June 2023.
  6. ↑ Pender, Kathleen (2018-02-01). "Quicken Loans tops Wells Fargo to become No. 1 in retail home loans". San Francisco Chronicle.
  7. ↑ "UWM Surpasses Rocket Mortgage as the #1 Overall Mortgage Lender". www.businesswire.com. 2022-11-04. Retrieved 2023-12-28.
  8. 1 2 "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. ↑ Segal, David (April 13, 2013). "A Missionary's Quest to Remake Motor City". New York Times. Retrieved 2016-01-26.
  12. ↑ Rock Financial Corporation (1998), Form S-1, U.S. Securities and Exchange Commission, p. 81, retrieved 2020-12-10
  13. 1 2 "The 400 richest Americans". Forbes Magazine. August 24, 2007. Retrieved 2007-08-24.
  14. 1 2 Duggan, Daniel (March 17, 2011). "Dan Gilbert: Quicken's triumph in overtime trial "a victory for right over wrong"". Crains Detroit Business.
  15. ↑ "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.
  16. 1 2 Howes, Daniel (November 12, 2007).Quicken moving to downtown Detroit.The Detroit News. Retrieved on November 12, 2007.
  17. ↑ "Gilbert: Housing slump hits Quicken". The Detroit News. October 15, 2007. Retrieved October 15, 2007.
  18. ↑ "Quicken lays off 250 in Mich., Ariz., Ohio". The Detroit News. June 20, 2008. Retrieved 2008-07-01.
  19. ↑ Wayland, Michael (October 11, 2011). "Gilbert's glory: 1,500 Quicken Loans employees move to Detroit, help 'transform downtown'". mLive. Retrieved 2012-11-28.
  20. ↑ Randolph, Ned (November 2, 2011). "Detroit native Dan Gilbert bets big on the city's rebound". Reuters. Retrieved 2012-11-28.
  21. ↑ Morris, Bill (October 18, 2012). "Finally, a Downtown's Upswing". New York Times. Retrieved 2012-11-28.
  22. ↑ "Rock Ventures on the Forbes America's Largest Private Companies List". Forbes . Retrieved 2016-08-03.
  23. ↑ 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.
  24. ↑ "Quicken Loans becomes largest U.S. mortgage lender". Detroit News. Retrieved 2018-03-10.
  25. ↑ Reindl, J. C. "Dan Gilbert just dipped into the online dictionary, thesaurus business". Detroit Free Press. Retrieved 2019-08-06.
  26. ↑ "New Quicken Loans tech centre a Windsor beachhead, says Rock Ventures principal". Windsor Star. October 31, 2018.
  27. ↑ "Detroit businessman Gilbert, Quicken Loans moving into Windsor". Windsor Star. October 15, 2018.
  28. ↑ "Local tech companies welcome Quicken Loans as potential game changer". Windsor Star. October 16, 2018.
  29. ↑ "Quicken Loans files paperwork for IPO under name Rocket Companies".
  30. ↑ 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.
  31. ↑ Tompor, Susan (August 6, 2020). "Dan Gilbert's Rocket IPO soars more than 20% in trading". Detroit Free Press . Retrieved January 8, 2021.
  32. ↑ Grzelewski, Jordyn (July 7, 2020). "Quicken Loans files paperwork for IPO under name Rocket Companies". RIS Media . Retrieved January 8, 2021.
  33. ↑ "Quicken Loans Mortgage Originations" . Retrieved December 2, 2021.
  34. ↑ "Quicken Loans will officially rebrand as Rocket Mortgage". Inman. Retrieved 22 August 2021.
  35. ↑ Swanson, Brena (November 24, 2015). "Game changer? Quicken Loans takes mortgage lending fully digital". Housing Wire . Retrieved January 8, 2021.
  36. ↑ "This Could Be The Mortgage Industry's iPhone Moment". Tech Crunch . November 24, 2015. Retrieved January 8, 2021.
  37. ↑ United States 10,158,650,"Token verification from incremental inputs",published December 18, 2018
  38. ↑ Lane, Ben (March 7, 2017). "Here's how much Rocket Mortgage helped Quicken Loans in 2016". Housing Wire . Retrieved January 8, 2021.
  39. ↑ United States 10,198,400,"Data set selection using multi-source constraints",published February 5, 2019
  40. ↑ United States 10,795,966,"Extracting data sets from external data stores",published October 6, 2020
  41. ↑ "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.
  42. ↑ Torne, Richard (2021-09-17). "Rocket subsidiary hits eClosing milestone". MPA Magazine. Retrieved 2022-03-14.
  43. ↑ "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.
  44. ↑ 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.
  45. ↑ "Rocket Mortgage Launches National Campaign To Address Urgent National Crisis Of Veteran Homelessness". joinbuiltforzero.org. November 28, 2019. Retrieved January 8, 2021.
  46. ↑ Johncox, Cassidy (May 20, 2020). "New initiative to provide 'digital access' to all Detroiters within next 5 year". WDIV TV . Retrieved January 8, 2021.
  47. ↑ "Changing the Course". PGA Tour. Retrieved January 8, 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.