Rocket Pro announced at RPX in Detroit today that it is launching a dedicated team to help recruit mortgage brokers away from United Wholesale Mortgage and move them onto its platform.
The wholesale lender’s new “Moving Squad” will guide brokers through the transition to Rocket, including those leaving UWM under its broker agreement.
Chief Revenue Officer Austin Niemiec said Rocket developed the program after seeing an increase in brokers making the switch.
“Over the last couple months, we're hearing from more and more and more brokers that they want their independence back in a big way,” Niemiec told National Mortgage Professional ahead of the event. "We've seen more brokers leave UWM and come to Rocket over the last 90 days than we have in the prior 12 months before that."
Each broker using the Moving Squad will be assigned an account executive, director of growth, operations-focused “crew director” and trainer, with no handoffs between teams. Rocket’s goal is to get newly approved brokers ready to submit their first loan within 10 days or less, with the team remaining through onboarding, activation and growth.
“The problem is, moving lenders can be disruptive if you don't know what you're doing,” Niemiec said. “So we decided, because of this demand, and where everything's at in the industry right now, we decided to remove that friction, and we built the moving squad.”
Rocket Takes Aim At UWM
Niemiec made clear that UWM brokers are a particular target of the initiative.
UWM’s broker agreement, commonly referred to as the “ultimatum,” restricts participating brokers from sending loans to certain competitors, including Rocket. Niemiec, a longtime critic of the policy, framed Rocket’s latest effort around brokers’ ability to choose among lenders.
“There's very few brokers out there that have ever also believed in the ultimatum. Really, a broker's superpower is choice,” he said.
He also acknowledged that some brokers may be concerned about potential legal consequences tied to the agreement. UWM’s 2021 “All In” ultimatum required brokers to stop originating loans with Rocket Mortgage and Fairway or lose UWM access, with signers exposed to contractual liquidated damages—reported as the greater of $5,000 per violating loan or $50,000.
“There's fear and there's threats of lawsuits if a broker leaves UWM and comes to Rocket, but it's actually very simple and very easy, and we have a playbook of how to do it,” Niemiec said.
Niemiec said Rocket has helped “hundreds and hundreds” of brokers leave UWM for Rocket and that assisting with that transition is part of the Moving Squad’s role.
Rocket is also giving its existing partners a financial incentive to help recruit UWM brokers. Through the end of the year, current Rocket partners that help a UWM broker “break free from the ultimatum” can earn up to a $10,000 cash bonus, according to Niemiec.
Rocket also plans to launch a landing page where interested brokers can connect directly with a Moving Squad.
This story will be updated as additional announcements are made at RPX on Tuesday.
