Rocket Companies
Rocket Mortgage originated $350 billion in home loans in 2020, then rates rose and volume collapsed 60 percent. Mortgage revenue is almost entirely a function of rates the lender cannot control. Only cost per loan is defensible.
Dan Gilbert wanted to close a mortgage in eight minutes. The average took 45 days. Gilbert's quick and loans had been pushing mortgages online since the '90s. Rocket Mortgage launched in 2015 and digitized everything. Upload documents, verify income, lock a rate on a phone screen. Rocket went public in 2020 during the refinancing boom. Revenue hit 16.9 billion. Profit exceeded 9 billion. The IPO valued the company at over 36 billion. The largest mortgage lender in America by volume, originating over 350 billion in loans that year alone. Then rates rose and refinancing collapsed. Revenue fell to 6.
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