Rocket Mortgage Q3 Earnings Echo Commitment To Innovation, Democratization Of Homeownership

Detroit-based Rocket Companies Inc RKT, home to Rocket Mortgage and Quicken Loans, the largest retail mortgage lender, reported a third-quarter earnings beat after Tuesday’s close.

What Happened: In its second earnings release since going public, Rocket reported adjusted revenue of $4.74 billion for the third quarter, a 163% year-over-year, beating the consensus analyst estimate of $4.55 billion.

Additionally, adjusted earnings per share came in at $1.21 and reported a 122% year-over-year increase in closed origination volume to $89 billion.

“In the midst of the pandemic, we were able to help an unprecedented number of Americans buy and refinance homes, providing financial relief through our tech-driven platform and award-winning service," said CEO Jay Farner, a 20-year veteran at Quicken Loans.

“Rocket Companies assisted more clients in the third quarter of 2020 than any quarter in our 35-year history. More importantly, the Company did this while maintaining industry-leading margins and profitability, demonstrating the sheer power of our platform as Rocket executes at incredible scale.”

Why It Matters: Rocket’s third-quarter beat is a reflection of the firm’s commitment to bringing increased efficiency and value to the lending space.

Since its start as Rock Financial in 1985, the firm has grown exponentially in accordance with ISMs, foundational principles put in place by founder and majority shareholder Dan Gilbert.

The firm’s strict adherence to these principles allowed it to become a national lending empire that has democratized access to homeownership and financial independence.

Now, as the COVID-19 coronavirus pandemic increased the digital disruption, the firm has shifted its focus to new technologies that automate underwriting and streamline origination.

"Homeownership is on the rise across the country, led by a new generation of first-time homebuyers," Farner said. "As a result of shifting demographics, and the ongoing pandemic, we are seeing rapid acceleration in the long-term shift from physical to digital transactions across the industries where we participate."