Starting today, Rocket Pro TPO launches the Fast 15 Guarantee, a promise that eligible loans will be cleared to close in no more than 15 business days from the submission of a complete loan file. In fact, the company is so confident in its guarantee that it will award borrowers with a $2,500 lender credit if the loan does not close on its promised due date.
Rocket will be promoting the Fast 15 Guarantee until April 30th, and it will apply for all conventional purchases on primary residences. Government loans, FHA loans, and VA loans do not apply, and the program is not available in a few states such as Hawaii and New Mexico.
This marks Rocket’s second biggest announcement aimed to improve how brokers’ loans are processed. The first announcement came in late January with the launch of the Crews program, which provided each Rocket Pro TPO broker partner direct access to a small, dedicated team of mortgage experts who know the broker, know their business, and can help get loans closed fast and with certainty.
“Lots of promises are made by lenders, but we’re putting our money where our mouth is,” Kevin Randolph, senior vice president of operations at Rocket Pro TPO, said. “We are using the same operational process that we always have, but within the past year we’ve noticed that many of our loans are getting closed in 15 days or less, so we decided to make this a guarantee for our borrowers and broker partners.”
Thanks to all of the technology and programs the company has onboarded over the past several years, Randolph said, Rocket is able to guarantee the fastest closing times in the industry.
In the past few years and with the outbreak of COVID-19, Rocket Pro TPO has accelerated its creation of proprietary technology and has rolled out new programs such as PathFinder, a proprietary mortgage guideline search engine. Additionally, there was the launch of Rocket Connect, providing brokers communication with underwriters and operational leaders directly in the broker portal and Rocket Pro TPO's new pricing calculator that can deliver brokers a pricing estimate quickly and easily.
“We’ve spent billions of dollars optimizing our technology and the rollout of the Crews program has really helped our operational efficiency,” Randolph said. “This promise comes from a combination of our 35 years of experience, our build-up of technology, and the AMC partners we’ve chosen to work with. We also have some of the best seasoned underwriters in the industry.”
Rocket’s method for retaining and satisfying broker partners is slightly different than the path most lenders are choosing to take. While some lenders like United Wholesale Mortgage are embracing bank statement loans and encouraging brokers to diversify their loan products, Rocket is still focused on closing loans at record speed.
Mortgage applications have been steadily declining since the beginning of this year, mainly due to the steep drop in refinance applications.
“Not surprisingly, refinance application volume declined further, as fewer borrowers have an incentive to apply at rates that are significantly higher than a year ago. Refinance application volume is now 60% below last year's levels, in line with MBA's forecast for 2022," said MBA Senior Vice President and Chief Economist Mike Fratantoni in a recent news release.
However, Rocket contends that being fast still matters in a purchase market and will give broker partners the competitive edge they need to retain a high volume of applications.
“We have a broad reach across the country and we already work with broker partners who offer a diverse range of loan products,” Randolph continued. “Having a faster contract date helps brokers stand out — why wouldn’t you want to be faster?”
Depending on the feedback Rocket gets from its broker partners, it may extend the Fast 15 Guarantee past the promotional period.
“The inches we need are all around us. It’s well known that we have the best technology in the industry and this guarantee will reiterate that,” Randolph added. “Worst case scenario, if the promotion ends we’ll still be able to pump out loans with exceptionally fast turn times.”
Throughout the rest of this year, Rocket will continue to build up its proprietary technology to achieve faster turn times and ease of use for all broker partners, according to Randolph. Rocket also plans on extending their Purchase Power Play through April, providing 30 basis points off purchase loans.
