Rocket Companies Inc., the Detroit-based holding company consisting of tech-driven real estate, mortgage and eCommerce businesses — including Rocket Mortgage, Rocket Homes, Amrock and Rocket Auto — Thursday announced impressive results for second quarter of 2021.
Reporting after the stock markets closed, Rocket posted net income of $1 billion, or 46 cents per diluted share, for the quarter, compared with $3.8 billion for the same quarter a year earlier, when the company was privately held.
The company said it met or exceeded guidance for closed loan, net rate-lock volume, and gain-on-sale margins for the fourth consecutive quarter, while achieving a record loan origination volume.
Its Rocket Mortgage division generated nearly $84 billion in mortgage origination closed loan volume, up 16.6% from the same quarter a year earlier and more than double the volume in the second quarter of 2019. Rocket noted that the total exceeded the total for the entire year of 2018.
Rocket Mortgage also posted a gain-on-sale margin of 2.7%, about 53% lower than the 5.2% margin reported in the same quarter last year. It reported net rate-lock volume of $83.6 billion in the second quarter of 2021, down 9% from $92 billion a year earlier.
Overall, Rocket Companies generated net revenue of $2.7 billion and adjusted revenue of $2.8 billion.
"Our mortgage, real estate, auto, and personal finance brands, powered by the tech-driven Rocket platform, delivered a strong second quarter," said Jay Farner, vice chairman & CEO of Rocket Companies.
"Our record purchase mortgage volume puts us well on the path to our goal of becoming the largest retail home purchase lender in the nation by the end of 2023,” Farner said. “That strong momentum will carry us into the second half of the year, as we expect our 2021 mortgage origination closed loan volume to exceed 2020's record performance of $320 billion. Our newer businesses — Rocket Homes, Rocket Auto and solar program — leverage our existing platform and represent significant growth opportunities."
To read the full earnings report, click here.
