What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.


Rocket delivers record volume in Q3, but execs are tight-lipped on purchase v. refi

Rocket posted closing origination volume of $89B and margins checked in at 4.52%

Back in September, executives at Rocket Companies bragged about delivering a record third quarter, the kind of origination volume no observer or analyst had ever seen before. They weren’t kidding.

Thanks to unprecedented market conditions, shifting demographics and historically low interest rates, Rocket posted closing origination volume of $89 billion, up 122% year-over-year, and rate lock volume at nearly $95 billion, an increase of 101% from the third quarter of 2019.

On the strength of those eye-popping numbers, Rocket cruised to a third-quarter profit of nearly $3 billion, a 506% increase year-over-year.

“Rocket Companies assisted more clients in the third quarter of 2020 than any quarter in our 35-year history,” CEO Jay Farner said on the Tuesday afternoon earnings call.

Rocket, the nation’s largest mortgage lender, easily surpassed its roughly $72 billion in originations from the second quarter. It had forecast between $82 billion and $85 billion in loan originations for the third quarter, with gain-on-sale margins projected between 4.05% and 4.23%. It blew all of those numbers out of the water.

Gain-on-sale margins, notably, checked in at 4.52%.

Executives on the Tuesday earnings call attributed the prosperous quarter to gains in the direct-to-consumer channel, investments in technology, and a bevy of strategic partnerships, some of which were just announced in the third quarter.

The Detroit-based company entered a marketing partnership with News Corp’s real estate portal Realtor.com, integrated a mortgage program through fintech app Mint, and bought a Canadian fintech firm. (Farner also said Rocket would have another major partnership to announce in the first quarter of 2021.)

Though analysts asked Farner and CFO Julie Booth to break down the share of purchase volume versus refinance volume, they declined to do so. (In its S-1, Rocket revealed that in 2019 just 27% of its loans were purchase.)

“We’re not disclosing that and the mix between the channels,” Booth said Tuesday.

However, Farner noted that the third quarter was “one of the strongest purchase quarters” and that Rocket issued more verified approval letters to clients in Q3 than any prior quarter in company history. He further said that the purchase business was driven by Millennials who prefer a digital mortgage experience.

According to the earnings statement, Rocket’s direct-to-consumer channel originated $53.6 billion in funded loan volume during the third quarter, with a gain-on-sale margin of 5.78%. It contributed to $3.3 billion in revenue in the third quarter.

Meanwhile, its partner network, which includes referrals from Charles Schwab and State Farm Insurance as well as mortgage brokers, generated $29.6 billion in funded loan volume during the third quarter. The gain-on-sale margin was 2.70%, and it contributed to $1.2 billion in revenue.

Farner also disclosed that the company would be buying back $1 billion in its Class A stock, which was trading at $21.60 at the close of business on Tuesday.

Leave a comment

Most Popular Articles

FHFA extends forbearance period to 18 months

In an effort to protect homeowners, the FHFA extended forbearance coverage to 18 months and pushed the eviction and foreclosure moratorium to June 30.

Feb 25, 2021 By

Latest Articles

How lenders can prepare for growing fraud threats

HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy.

Feb 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please