The mortgage giant has announced its Q3 results
Rocket Companies has announced a year-over-year fall in its net revenue for the third quarter, with the mortgage giant taking in just over $1.2 billion in Q3 2023 compared with more than $1.29 billion at the same time last year.
The company, whose businesses include Rocket Mortgage, Rocket Homes, Rocket Loans and Rocket Money, said its net income came in at $115 million for the quarter, or $0.04 per diluted share.
Rocket Mortgage closed $22.2 billion in mortgage origination loan volume for the quarter, resulting in a gain on sale margin of 2.76%. That marked the third successive quarter of rising gain on sale margin, although it remained lower than the Q3 2022 figure of $25.58 billion.
Net client retention rate for Rocket Mortgage was 97% for the 12 months ending September 30, a result that Rocket said was “unmatched among mortgage companies” and “on par with some of the best performing subscription business models in the world.”
Of note was an increase in traction for the company’s 1% down home loan program, ONE+, with closing volume and loan units more than tripling between June and September of this year.
Uptake of Rocket’s home equity loan product also increased in the third quarter, more than doubling compared with the start of 2023, while the company increases its overall purchase market share on both a yearly and quarterly basis.
Rocket holds $8.7 billion of liquidity, the company said, including $1 billion of cash on hand, $2.8 billion of corporate cash used for self-funding of loan originations, $3.3 billion of undrawn lines of credit from financing facilities, and $1.7 billion of undrawn MSR lines.
Varun Krishna, Rocket’s CEO, said the results had arrived amidst a “challenging economic backdrop,” and described the company as remaining “uniquely positioned to disrupt the industry.”
