![]() ![]() In addition to the loan revenue, Rocket Mortgage also services the loans, meaning they are responsible for the processing of monthly mortgage payments, managing escrow accounts and reporting loan and pool information to investors. In fact, their business model is high-velocity and capital light because they originate mortgage loans that are sold either to government-backed entities or to investors in the secondary mortgage market, and are sold within three weeks of origination. ![]() Revenue from Rocket Mortgage are generated from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, and the fair value of originated mortgage servicing rights (MSRs) and hedging gains and losses. Rocket Mortgage - (83% of total revenue) The online mortgage application platform where users can apply for a mortgage and get real-time quotes via online or phone. In this post, we look at if Rocket Companies will be able to continue its growth and dominance in market share. Q2 2020 saw a record $72.3 billion originated in loans, up 40% from Q1, and more than double the amount in Q1 2019. The ease of applying for a mortgage via Rocket Mortgage’s digital platform and iPhone app has allowed for Rocket Companies to experience tremendous growth in direct-to-consumer loans in the last few years, especially among Millennials. As the largest mortgage lender in the U.S., the company has provided more than $1T in home mortgage loans since its inception in 1985, and currently maintains a current market share of 9.2% in the $2 trillion annual market, growing at a 19% CAGR in processed volume. Rocket Companies is a Detroit-based holding company that consists of many businesses, most notably Quicken Loans and Rocket Mortgage. Rocket Companies ($RKT), the parent company of major mortgage lender, Quicken Loans, and online mortgage application process, Rocket Mortgage, IPO’d on Thursday morning and jumped as much as 26% on opening day. ![]()
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