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In the third quarter of 2021, Rocket Companies said they earned $1.39 billion and attribute their success to the better-than-expected performance of their mortgage origination and servicing business.
The Detroit-based lender made a net revenue of $3.1 billion during the quarter. Its mortgage originations volume from $83.8 billion in the previous quarter reached $88 billion this quarter.
The company’s gain-on-sale margin rose to 305 basis points, better from 278 basis points in Q2 2021. They had reached a peak of 519 bps in Quarter 2 of last year.
Vice-chairman and CEO of Rocket Companies, Jay Farner, said that they had an excellent third quarter and their core mortgage business exceeded the high end for closed loan volume and gain-on-sale margin while achieving record purchase volume.
The company’s purchase volume rose 70% compared to last year and they attribute it to their technology and product innovation.
Mortgage as a service was being offered to financial institutions by Rocket Companies who partnered with cloud-based software company Salesforce.
Farner said that looking ahead to 2022, the company expects to exceed 10% share in a purchase-heavy mortgage market and to continue leveraging their platform to grow and scale the other businesses, including real estate, auto, personal loans, and solar.
Reference Source: MPA
