Rocket Companies, the parent company of Rocket Mortgage and Rocket Homes, is bidding farewell to its chief executive.
Rocket announced Monday that Jay Farner is planning to retire from his role at the helm of the Detroit-based company. According to recent SEC filings, Farner notified Rocket’s Board of Directors of his intent to retire on Feb. 8, which will go into effect June 1.
He has also stepped down as vice chairman and member of the Board, effective immediately.
“For nearly three decades, Jay has poured everything he has into making our organization successful,” said Dan Gilbert, founder and chairman of Rocket Companies, in a statement.
Touting a 27-year career at the company, Farner was named CEO of Rocket Mortgage in 2017 before he was appointed CEO of Rocket Companies in connection with the company going public in 2020.
“Being part of this amazing organization has been one of the most rewarding experiences of my life. More than 27 years ago, fresh out of college, I decided to join a small mortgage company led by Dan Gilbert,” Farner said in a statement. “I never could have predicted the amazing journey that one decision would have taken me on, and I want to thank Dan for his mentorship, guidance and friendship over the years.”
Gilbert acknowledged and commended Farner for his oversight of Rocket’s surging growth and profitability during his time as CEO.
“His passion for people and vision for the future has benefitted Rocket tremendously, and on behalf of the entire Board, I’d like to thank him for all of his work over the years,” Gilbert said.
The Board of Directors has commenced a search for a permanent CEO and has retained a leading firm to support its evaluation of internal and external candidates.
Longtime Rocket executive Bill Emerson will be stepping in as interim CEO as Rocket begins its search for Farner’s permanent replacement.
Emerson currently serves as vice chairman of Rock Holdings, Inc., Rocket’s majority stockholder, a position he has held since February 2017. Since August 2020, Emerson has also served as vice chairman of Bedrock, a Detroit-based real estate firm specializing in acquiring, developing, leasing and managing commercial and residential buildings.
“Looking forward, we are fortunate to have someone of Bill’s caliber and experience to serve as interim CEO while the Board conducts a search for a permanent successor,” Gilbert said. “For a decade and a half, Bill served at the helm of our mortgage business—driving impressive results and setting the tone for our culture.
Rocket indicated in its SEC Filing that Farner’s retirement from the Board was not because of a disagreement with the company.
That said, Farner’s departure comes at a challenging time for the company, which has weathered the shifting mortgage environment of the past year. Rocket Companies reported significant losses in the third quarter of 2022, tallying more than a 40% drop in annual revenue.
The company also reported an adjusted net loss of $166 million in the third quarter, posting its first unprofitable quarter since going public.
Farner acknowledged the “challenging times” the mortgage industry faced in November, pointing to the effects of mortgage rates surging past 7% as a factor of the company’s struggles.
Mortgage rates have receded since hitting those peak levels, and Rocket has yet to reveal how it fared in the fourth quarter and full year of 2022.
