Rocket Companies’ head executive touted the company’s growing presence in the mortgage market as key to its third quarter, which saw annual upticks in adjusted revenue, rate lock activity, and closed loan volume.
“We delivered strong third-quarter results, expanding purchase and refinance market share, and increasing adjusted revenue by 32% year-over-year,” said Varun Krishna, CEO and director of Rocket Companies. “Our adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was the highest in two years. These achievements highlight the strength and resilience of the Rocket Superstack — our competitive advantage that combines our ecosystem, experience, technology and brand. We’ve demonstrated that whatever the market brings, we will drive a bright future in helping more Americans achieve the dream of homeownership.”
In a statement, the company credited “numerous optimizations in our processes, teams, marketing and technology capabilities” for the year-over-year upswing in both purchase and refinance share in the marketplace.
Despite ongoing difficult market conditions, Rocket Mortgage saw $28.5 billion in closed loan origination volume in Q3, up 28% from the third quarter of last year. Net rate lock volume, meanwhile, came in at $29.8 billion, up 43% annually.
Rocket’s direct-to-consumer (retail) operation sold a loan volume of $14 million for the quarter, while its wholesale partner network saw a sold loan volume of $12.4 million.
The company still reported a GAAP net loss of $481 million for the quarter, amounting to a $0.19 loss per diluted share. On an adjusted basis, Rocket’s net income grows to $166 million, or an adjusted earnings of $0.08 per diluted share.
The company reported total liquidity of $8.3 billion, which includes $1.2 billion of cash on the balance sheet. Its earnings report also noted the acquisition of $311 million in mortgage servicing right (MSR) portfolios in the third quarter, representing roughly 220,000 new clients carrying roughly $22.4 billion in unpaid principal balance, as well as the new subservicing agreement with Annaly Capital Management beginning as early as December.
