Rocket Companies, Inc. announced results for the third quarter of 2021.
“We had an excellent third quarter, as we executed on our mission to remove friction from life’s complex moments. Our core mortgage business exceeded the high end of guidance for closed loan volume and gain-on-sale margin, while achieving record purchase volume,” said Jay Farner, vice chairman and CEO of Rocket Companies, in a statement. “We also announced our exciting partnership with Salesforce to provide ‘Mortgage as a Service’ to financial institutions, leveraging Rocket Mortgage’s transformational platform powered by Rocket technology. Looking ahead to 2022, we expect to exceed 10% share in a purchase-heavy mortgage market and continue to leverage our platform to grow and scale the other businesses in our ecosystem, including real estate, auto, personal loans and solar.”
Financial Highlights
During the third quarter of 2021:
– Generated total revenue, net of $3.1 billion and adjusted revenue of $3.2 billion in Q3 ’21, which represents 96% and 76% growth as compared to Q3 ’19, respectively
– Generated $88 billion in mortgage origination closed loan volume and gain on sale margin of 3.05%, exceeding the top end of guidance range
– Closed loan volume was more than double Q3 ’19 levels
– Generated net income of $1.4 billion, which exceeded full-year 2019 net income of $0.9 billion and adjusted net income of $1.1 billion during Q3 ’21, which was more than double Q3 ’19 levels
– Achieved adjusted EBITDA of $1.6 billion during Q3 ’21, more than double Q3 ’19 levels.
– Adjusted EBITDA margin was 48% for Q3 ’21, which compares to 41% for Q3 ’19
– Grew servicing book unpaid principal balance to $521 billion at Sept. 30, 2021, up 30% from Sept.30, 2020 and 60% from Sept. 30, 2019
– As of Oct. 31, 2021, servicing portfolio includes 2.5 million clients and generates $1.3 billion of recurring servicing fee income on an annualized basis
– Subsequent to Sept.30, 2021, Rocket Mortgage issued $1,150 million of 2.875% senior notes due 2026 and $850 million of 4.000% senior notes due 2033
– As of Oct. 31, 2021, Rocket Companies repurchased 5.7 million shares at an average price of $16.42
Balance Sheet and Liquidity
Rocket Companies says it remains in a strong liquidity position, with total liquidity of $8.6 billion, which includes $2.2 billion of cash on-hand, $2.9 billion of corporate cash used to self-fund loan originations, a portion of which could be transferred to funding facilities (warehouse lines) at their discretion, $3.1 billion of undrawn lines of credit from non-funding facilities and $0.3 billion of undrawn MSR lines. Available cash position was $5.1 billion, which includes cash on-hand and corporate cash used to self-fund loan originations.
For more information, please visit www.rocketmortgage.com.
