Rocket Companies, Inc., a Detroit-based holding company consisting of tech-driven real estate, mortgage and eCommerce businesses—including Rocket Mortgage, Amrock, Rocket Homes and Rocket Auto—recently announced results for the quarter and year ended Dec. 31, 2020.
“Rocket Companies’ record-breaking fourth quarter and full-year 2020 results demonstrate the sheer power of the technology platform we have built and refined for more than two decades,” said Jay Farner, Rocket Companies’ vice chairman and CEO. “In the midst of a pandemic, we successfully drove growth in every segment of our business, while never losing focus on meeting the needs of our team members, clients and communities. As a result of our highly profitable and capital light business model, I’m excited to announce that the Board of Directors has approved a significant special dividend of $1.11 per share. We are delighted to be able to share our success with those who have supported our vision and share our excitement for the future.
“As more and more consumers shift their preferences toward an increasingly digital experience, we are better positioned than ever to provide them with innovative, technology-driven solutions that simplify even the most stressful and complex transactions. Looking ahead, we will continue to invest in our world-class technology driven solutions that allow us to diversify our scalable platform business model.”
Fourth Quarter Highlights
– Grew total revenue, net, for Rocket Companies to $4.7 billion from $1.9 billion in Q4 2019 and adjusted revenue to $4.8 billion from $1.8 billion in Q4 2019.
– Grew net income to $2.8 billion from $0.8 billion in Q4 2019 and adjusted net income to $2.3 billion from $0.5 billion in Q4 2019.
– Generated record closed loan origination volume of $107.2 billion and net rate lock volume of $96.0 billion in the fourth quarter of 2020, which represented improvements of 111% and 119%, respectively, as compared to the fourth quarter of 2019.
– Increased gain on sale margin by 100 basis points year-over-year to 4.41%.
– Rocket Homes assisted clients with nearly $1.6 billion of real estate transactions during the fourth quarter of 2020.
– Increased other income to $549.9 million from $265.7 million in Q4 2019, including record growth from Amrock’s title insurance services, property valuation and settlement services, which increased to $448.2 million in Q4 2020 from $197.9 million in Q4 2019.
Full Year Highlights
– Grew total revenue, net, to $15.7 billion from $5.1 billion in 2019 and adjusted revenue to $16.9 billion from $5.9 billion in 2019.
– Increased net income to $9.4 billion from $0.9 billion in 2019 and adjusted net income to $8.2 billion from $1.3 billion in 2019.
– Generated record closed loan origination volume of $320.2 billion and net rate lock volume of $338.7 billion, which represented year-over-year improvements of 121% and 123%, respectively.
– Increased gain on sale margin by 127 basis points year-over-year to 4.46%.
– Increased other income to $1.8 billion from $0.7 billion in 2019, including record growth from Amrock which increased to $1.3 billion in 2020 from $0.6 billion in 2019.
Balance Sheet and Liquidity
“We remain in a strong liquidity position, with total liquidity of $7.7 billion, which includes $2.0 billion of cash on-hand, $2.8 billion of undrawn lines of credit, $0.3 billion of undrawn MSR lines, and $2.6 billion of corporate cash used to self-fund loan originations, a portion of which could be transferred to funding facilities (warehouse lines) at our option.”
During the quarter, Rocket Companies repaid the $1.25 billion of 5.750% senior notes due 2025 with funds received from the $750 million of 3.625% senior notes due 2029, and the $1.25 billion of 3.875% senior notes due 2031, issued on Sept. 14, 2020. The remaining net proceeds from the senior notes are expected to be used for general corporate purposes.
For more information, please visit www.quickenloans.com.
