Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

Why brokerages and mortgage lenders are rushing into JVs

Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy.

Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

Robert Dietz on why the single-family rental market is growing

In this episode of HousingWire Daily, NAHB's Robert Dietz explains why the marketshare of single-family rentals is growing despite strong homebuyer demand. He also discusses the NAHB’s latest Housing Market index.

Real EstateBrokerageMortgageUncategorized

Rocket announces discount real estate brokerage

Agents would work from Detroit and collect a 1.5% commission from home sale, company says

Rocket Homes has plans to start iBuying – and discount real estate.

The Detroit-based company – and no. 1 mortgage lender in the U.S. by volume – fired off a 1,490-word press release Tuesday declaring its intention to “combine every aspect of home selling and buying into one simple, customizable platform.”

Such are the ambitions of an array of companies today including Zillow and real estate brokerage Compass. But Rocket’s announcement provides a couple of specific ways it wants to cut into the real estate market and challenge traditional agents.

Foremost is the ability for a home seller to work with an in-house Rocket real estate agent who is in “downtown Detroit” and will receive a commission of 1.5% of the sales price.

This remote agent would do many functions of a physically present salesperson, including “advising clients on the best list price, facilitate professional photos, list the house on the multiple listings service, negotiate offers and handle all paperwork.”

How Rocket Pro TPO continues to give its broker partners the upper hand

To remain competitive and create a better experience in this purchase environment, brokers need one thing above all: Speed. And there’s one lending partner that has the solutions and resources to give LOs just that. 

Presented by: Rocket Pro TPO

The remote agent option “will be open to the public starting in the fourth quarter of 2021,” according to the release, with homeowners “paying a significantly lower commission of only 1.5% for the selling agent, as opposed to the traditional fee of 3%, which represents a savings of $4,500 on a $300,000 home.”

The average U.S. listing agent fee is closer to 2.5%, according to a RealTrends study. Still, the discount puts Rocket in the company of Redfin and smaller outfits such as Rex and Clever, who are trying to buck the traditional fee split collected by agents.

Rocket is additionally offering a traditional agent service. The company plans to continue their program of recommending agents through the “Rocket Homes Verified Partner Agent Network” program.

Rocket also announced Wednesday a “soon to-be-released iBuyer program, facilitated through third-party partner companies.”

Rocket envisions people selling homes through their iBuying platform and then using the company’s website, app, and partner agents to facilitate the purchase of their next house.

Rocket’s further leap into real estate comes after the company reported $1.3 billion in first quarter net income. That compares favorably to other companies promising a one-stop shop platform, such as Zillow, which reported $9 million in second quarter net income, and Redfin, which posted a $28 million loss last quarter.

One challenge to Rocket’s ambitions may come from the federal government. As Inman News flagged, the company spends a couple of pages of its recent annual report noting that the Consumer Finance Protection Bureau may change enforcement of the Real Estate Settlement Procedures Act, or RESPA.

That 48-year-old law, in part, bans kickbacks and referral fees between real estate agents and mortgage lenders.

Rocket is presently defending itself in a federal complaint filed by Dmitry Shipkin of who claimed the company partakes in illicit kickbacks.

“We are cooperating fully with the CFPB in this investigation and are confident in the compliance processes that Rocket Homes has in place,” Rocket’s annual report reads.

Leave a comment

Most Popular Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

Oct 18, 2021 By

Latest Articles

GSE forbearance rate declines to 1%

Servicers’ forbearance portfolio volume declined at a reduced pace this week, as mortgage holders exit COVID-19 plans at the beginning of the month, according to the MBA.

Oct 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please