Rocket Cos. Reports Q1 Net Income of $ 2.8 Billion Investing in Detroit Housing Partnership
Rocket Cos. of Detroit, a holding company of real estate, mortgage and e-commerce companies, announced first quarter results, highlighting the highest volume of purchase requests to date, success in its Rocket Auto division and high closing numbers with Amrock.
“This was the sixth straight quarter that our team doubled the company’s home loan volume year over year,” said Jay Farner, vice chairman and CEO of Rocket Cos.
Total revenue for the quarter was nearly $ 4.6 billion, up from nearly $ 1.4 billion for the year-ago quarter. Net income was $ 2.8 billion versus $ 99 million. Adjusted sales were $ 4 billion versus $ 2.1 billion, adjusted net income was $ 1.8 billion versus $ 656 million, and adjusted earnings before interest, taxes, depreciation and amortization Amortization at $ 2.4 billion versus $ 922 million.
In March, the company had its highest sales volume ever, while Rocket Auto increased vehicle sales by 65 percent compared to the same period last year. Amrock had the highest closing in company history, up 110 percent from the first quarter of 2020, and Rocket Homes increased the average monthly visitors to its website by more than 300 percent from the first quarter of last year.
The volume of closed lending generated was $ 103.5 billion and the net installment lockout volume was $ 95.1 billion, an improvement of 100 percent and 70 percent over the previous year, respectively.
The company also saw its sales margin increase 49 basis points year over year to 3.74 percent.
Amrock, the property insurance, real estate appraisal, and billing services company, has 348,800 deals. This record volume was the primary driver behind the increase in other income for the first quarter to $ 466.1 million from $ 243.8 million a year ago.
Rocket Auto, the company’s automotive retail marketplace, enabled sales of 13,600 auto units, more than 5,300 units, or 65 percent, compared to Q1 2020. Gross merchandise value for the first quarter was $ 360 million, which is an annualized circulation rate of more than $ 1 billion.
The Rocket Cos platform. generated more than 60 million unique visitors in the first quarter, an increase of 72 percent compared to the previous year. Average Unique Monthly Visitors For RocketHomes.com, his home search experience, increased more than 300 percent year over year.
The net customer retention rate for the twelve months ended March 31 was 91 percent. There is a strong correlation between this metric and customer lifetime value.
More than 45,000 real estate agents have signed up for Rocket Pro Insight, up from 14,000 on December 31st. The platform offers brokers real-time updates on the status of their clients’ mortgages and the ability to assist with the mortgage process.
The company also rolled out Rocket Logic, a workflow technology, beyond the original pilot group. In the first quarter, more than a third of the company’s loan volume was handled through Rocket Logic, which helped reduce total turnaround times by more than 30 percent year over year in the first quarter.
Rocket Auto recently partnered with AutoFi, an automotive retail software provider with a network of more than 2,000 dealer partners. The new relationship, coupled with Rocket Auto’s platform, will enable a complete point-of-sale solution for automobiles including finance and insurance.
In March, the Gilbert Family Foundation and the Rocket Community Fund made a joint 10-year pledge of $ 500 million to build economic opportunity and equity in Detroit.
The MacArthur Foundation awarded a $ 100 million grant to its partner, Community Solutions, to fund the Built for Zero initiative, which aims to end veterans and chronic homelessness. Rocket Mortgage has been a national partner of Built for Zero since 2018.
In the second quarter, the company expects a completed loan volume of between $ 82.5 billion and $ 87.5 billion. The net rate lockdown volume is expected to be between $ 81.5 billion and $ 88.5 billion. Increases in sales margins of between 2.65 percent and 2.95 percent are expected.
In related news, the City of Detroit, the Rocket Community Fund, and CHN Housing Partners today announced a $ 2.2 million investment in a network of six Detroit-based nonprofits that provide housing and financial stability services to Detroit residents will offer.
The organizations will work together as the Detroit Housing Network and capitalize on investments to empower and expand homeowner services, including mortgage and financial advice, property tax foreclosure prevention, home repair assistance, and assistance to low-income households looking to become homeowners. The network’s goal is to create healthy neighborhoods and promote racial justice in the Detroit communities.
CHN, an affordable housing developer and housing service provider, manages the philanthropic investments from the Rocket Community Fund. CHN focuses on sustainable housing solutions for low-income people and underserved communities.
“By pooling the collective resources of established community organizations for a single purpose, we have the ability to bridge existing inequalities and give Detroiters access to the support they need to experience stable, affordable housing,” says Kevin Nowak. Executive Director of CHN Housing Partners. “Over time, the Detroit Housing Network will grow to meet Detroit’s high demand for housing-related services.”
The Rocket Community Fund investment leverages the Detroit City Department of Housing and Revitalization’s investment of COVID-19 reactants through the federal CARES Act.
Housing and financial advisory grant recipients include Bridging Communities, Central Detroit Christian CDC, Jefferson East Inc., Matrix Human Services, U SNAP BAC, and Wayne Metro Community Action Agency. The organizations combined serve more than 200 years of service to Detroit residents. The network is to be expanded to include additional non-profit partners this year.
Detroit residents can contact any of the participating organizations to speak to a housing or financial advisor.
The organizations will assist Detroit residents with access to the city’s real estate tax assistance program, Pay As You Stay, and the city’s 0% interest home repair loan program, among other things.
“We have a number of excellent programs that can help Detroiters stay in their homes or repair their homes. We just need to better make sure that Detroiters know how to access it, ”says Detroit Mayor Mike Duggan. “The Rocket Community Fund has been a great partner in our successful efforts to reduce tax foreclosure by 95 percent. ”
The Rocket Community Fund invested more than $ 750,000 in the Detroit Housing Network as part of its ongoing 10-year joint philanthropic commitment of $ 500 million to Detroit, announced by Dan and Jennifer Gilbert in March. It will also provide ongoing marketing, technology, and development support.
The Detroit Housing Network joins other partnerships in Detroit including Rehabbed and Ready, Make It Home, Neighbor to Neighbor, and the Detroit Tax Relief Fund, which reduced property tax foreclosures, offered tenants the opportunity to own their own home, Targeting real estate values in neighborhoods, improving access to repair finance, and eliminating property tax liabilities of 20,000 qualified Detroit homeowners.
CHN Housing Partners was founded in 1981.
More information about the program, including locations and contact information, is available Here.
The Rocket Community Fund is the philanthropic arm of Rocket Cos.