Rocket Mortgage, LLC
FormerlyRock Financial (1985–1999)
Quicken Loans, LLC (1999–2021)
TypePublic company
Industry
Founded1985 (1985) (as Rock Financial)
Founders
HeadquartersOne Campus Martius,
Detroit, Michigan
,
U.S.
Key people
Bill Emerson (Interim CEO), Bob Walters (COO)
Products
BrandsRocket Mortgage
RevenueIncrease US$15.735 billion (2020)
Increase US$9.532 billion (2020)
Increase US$932 million (2020)
Total assetsIncrease US$37.535 billion (2020)
Total equityIncrease US$7.882 billion (2020)
OwnerDan Gilbert (93.2%)
Number of employees
24,000 (2020)
ParentRocket Companies, Inc.
SubsidiariesRocket Mortgage, Amrock, Amrock Title Insurance Company, Fathead, Nexsys Technologies, Lendesk, Edison Financial, Rocket Homes, ForSaleByOwner.com, Rocket Loans, Rocket Auto, Core Digital Media, LowerMyBills.com, Rock Connections, Rocket Central, Rocket Innovation Studio, Rock Ventures (As a holding) Rocket Innovation Studio, Rocket Solar, Dictionary.com, Thesarus.com, 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] Unlike other large mortgage lenders that depend on deposits, 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]

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

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. 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 August 2007, the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response, Quicken Loans discontinued:[15]

  • Second mortgages
  • Home equity lines of credit (HELOC)
  • Alt-A products
  • Deferred interest loans

On November 12, 2007, 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] Quicken Loans moved into its downtown headquarters in August 2010. The initial move brought 1,700 employees to the city.[17]

Former logo of Quicken Loans

In the spring of 2008, Rock Holdings entered the reverse mortgage market with the acquisition of One Reverse Mortgage.

The company saw a small drop in employment levels following the 2008 financial crisis.[18][19]

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.[20]

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

Quicken Loans has consistently been awarded the highest customer satisfaction rating among primary mortgage originators in the U.S. for 10 straight years,[29] as well as being one of top 20 companies to work for[30] and a top pick for overall best mortgage lenders,[31] according to Consumers Advocate.

On July 7, 2020, it was announced that Quicken Loans had filed paperwork with the U.S. Securities and Exchange Commission to start the process of taking the company public under the name Rocket Companies.[32]

On August 6, 2020, Rocket Companies, Inc. went public under the symbol RKT,[33] raising $1.8 billion.[34][35]

For the year ended 2020, Quicken Loans originated over 1.1 million loans valued at $313 billion,[36] 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. For the year ending in 2022, that difference had closed to just 5.7 billion in value and approximately 5% of each other.

On May 12, 2021 Quicken Loans announced that it would be rebranded to Rocket Mortgage, by July 31, 2021.[37]

Rocket Mortgage

In 2015, Quicken Loans created Rocket Mortgage, the first lender to perform electronic closings (eClosings) in all 50 states.[38] Upon launch, TechCrunch claimed it was the mortgage industry's “iPhone moment” and compared the application process to TurboTax.[39] Rocket owns three patents around verifying client data, filtering it and sourcing it, and extracting it from external parties.[40] In 2019, it filed another patent for data set selection using multi-source constraints.[41] The most recent patent was filed in October 2020 regarding extracting data sets from external data stores.[42]

In its first full year, Rocket funded $7 billion in closed loans.[43] J.D. Power named Rocket Mortgage #1 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.[44] As of 2021, Rocket subsidiary Amrock has fulfilled more than 1 million digital mortgage closings.[45][46]

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.[47]

Rocket Mortgage has launched several initiatives that support its home communities of Detroit, Cleveland, Charlotte, and Phoenix, including veteran homelessness[48] and digital literacy.[49][50]

See also

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. ↑ 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. ↑ Randolph, Ned (November 2, 2011). "Detroit native Dan Gilbert bets big on the city's rebound". Reuters. Retrieved 2012-11-28.
  18. ↑ "Gilbert: Housing slump hits Quicken". The Detroit News. October 15, 2007. Retrieved October 15, 2007.
  19. ↑ "Quicken lays off 250 in Mich., Ariz., Ohio". The Detroit News. June 20, 2008. Retrieved 2008-07-01.
  20. ↑ Wayland, Michael (October 11, 2011). "Gilbert's glory: 1,500 Quicken Loans employees move to Detroit, help 'transform downtown'". mLive. 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. ↑ "2019 U.S. Primary Mortgage Origination Satisfaction Study".
  30. ↑ "Quicken Loans".
  31. ↑ "The Best Mortgage Rates of 2021 | ConsumersAdvocate.org". www.consumersadvocate.org. Retrieved 22 August 2021.
  32. ↑ "Quicken Loans files paperwork for IPO under name Rocket Companies".
  33. ↑ 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.
  34. ↑ Tompor, Susan (August 6, 2020). "Dan Gilbert's Rocket IPO soars more than 20% in trading". Detroit Free Press. Retrieved January 8, 2021.
  35. ↑ Grzelewski, Jordyn (July 7, 2020). "Quicken Loans files paperwork for IPO under name Rocket Companies". RIS Media. Retrieved January 8, 2021.
  36. ↑ "Quicken Loans Mortgage Originations". Retrieved December 2, 2021.
  37. ↑ "Quicken Loans will officially rebrand as Rocket Mortgage". Inman. Retrieved 22 August 2021.
  38. ↑ Swanson, Brena (November 24, 2015). "Game changer? Quicken Loans takes mortgage lending fully digital". Housing Wire. Retrieved January 8, 2021.
  39. ↑ "This Could Be The Mortgage Industry's iPhone Moment". Tech Crunch. November 24, 2015. Retrieved January 8, 2021.
  40. ↑ United States 10,158,650, "Token verification from incremental inputs", published December 18, 2018
  41. ↑ United States 10,198,400, "Data set selection using multi-source constraints", published February 5, 2019
  42. ↑ United States 10,795,966, "Extracting data sets from external data stores", published October 6, 2020
  43. ↑ Lane, Ben (March 7, 2017). "Here's how much Rocket Mortgage helped Quicken Loans in 2016". Housing Wire. Retrieved January 8, 2021.
  44. ↑ "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.
  45. ↑ Torne, Richard (2021-09-17). "Rocket subsidiary hits eClosing milestone". MPA Magazine. Retrieved 2022-03-14.
  46. ↑ "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.
  47. ↑ 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.
  48. ↑ "Rocket Mortgage Launches National Campaign To Address Urgent National Crisis Of Veteran Homelessness". joinbuiltforzero.org. November 28, 2019. Retrieved January 8, 2021.
  49. ↑ Johncox, Cassidy (May 20, 2020). "New initiative to provide 'digital access' to all Detroiters within next 5 year". WDIV TV. Retrieved January 8, 2021.
  50. ↑ "Changing the Course". PGA Tour. Retrieved January 8, 2021.
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