Lending reports

Amid rising rates, Rocket Cos. of Detroit reports first-quarter earnings

Rocket Cos., the Detroit-based platform company that includes Rocket Mortgage, Truebill, and more, reports Q1 2021 earnings amid rising interest rates. // Image bank

RocketCos. Inc., a Detroit-based fintech platform company that includes Rocket Mortgage, Rocket Homes, Truebill and Rocket Auto, announced its first quarter (Q1) results, which showed net income of $2.7 billion. and an adjusted income of .9. billion.

“Rocket delivered a strong performance in the first quarter and delivered its best purchase and disbursement refinancing volume in the first quarter, even as rates rose rapidly,” said Jay Farner, vice president and CEO of Rocket Cos. .

“Now, as we move forward into the year, we will successfully weather the mortgage and real estate headwinds by protecting our margin and profitability while continuing to invest in strategic areas such as technology, partnerships and performance marketing to increase our market share and grow our business for the long term.”

RocketCos. generated net income of $1 billion in the first quarter and adjusted net income of $293 million, compared to $1.8 billion in the first quarter of 2021. Adjusted EBITDA was $450 million, compared to 2 $.4 billion year-on-year.

Rocket Mortgage achieved its best volume of purchase and refinance closed loans in the first quarter in company history this quarter. On its own, however, closed loan volume was down year-over-year to $53 billion from $103 billion. Its buying volume grew 43% from Q1 2021 levels, thanks to a technology-driven customer experience, product innovation and its integrated end-to-end home buying ecosystem. Rocket Mortgage’s net customer retention rate was 92% during the quarter.

Rocket Homes recorded a first-quarter record of 8,200 real estate transactions and $2 billion in real estate transaction value during the first quarter of 2022, representing the value of homes bought and sold through the realtor network.

Rocket Auto, the motor vehicle retail market, generated a record first quarter of $445 million in gross merchandise value, up $85 million, or 24%, from the first quarter of 2021 .

Truebill, a personal finance app that Rocket Cos. acquired in December 2021 and which helps customers manage their entire financial life, grew its member base to 3.4 million in the first quarter of 2022, up 142% year-over-year. Of the 3.4 million members, 1.7 million are paying members, up more than double year-over-year.

Rocket Solar currently facilitates transactions in 27 major markets in nine states, including Arizona, Florida and South Carolina. A full public launch is scheduled for June 2022.

At the end of the quarter, approximately 85,000 real estate agents signed up for Rocket Pro Insight (RPI), compared to approximately 80,000 at the end of the fourth quarter of 2021. RPI is a digital platform allowing real estate agents to manage the entire mortgage process in real time, from application submission to closing.