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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Rocket Companies Inc | NYSE:RKT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.1203 | 0.98% | 12.4003 | 13.00 | 12.065 | 12.26 | 2,081,861 | 00:20:01 |
Delaware | 84-4946470 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
1050 Woodward Avenue, Detroit, MI | 48226 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, par value $0.00001 per share | RKT | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Table of Contents | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | (Unaudited) | ||||||||||
Cash and cash equivalents | $ | 893,383 | $ | 722,293 | |||||||
Restricted cash | 64,307 | 66,806 | |||||||||
Mortgage loans held for sale, at fair value | 8,438,714 | 7,343,475 | |||||||||
Interest rate lock commitments (“IRLCs”), at fair value | 182,112 | 90,635 | |||||||||
Mortgage servicing rights (“MSRs”), at fair value | 6,669,939 | 6,946,940 | |||||||||
Notes receivable and due from affiliates | 8,073 | 10,796 | |||||||||
Property and equipment, net of accumulated depreciation and amortization of $486,940 and $463,262, respectively | 267,320 | 274,192 | |||||||||
Deferred tax asset, net | 541,248 | 537,963 | |||||||||
Lease right of use assets | 391,897 | 366,189 | |||||||||
Forward commitments, at fair value | 5,101 | 22,444 | |||||||||
Loans subject to repurchase right from Ginnie Mae | 1,626,587 | 1,642,392 | |||||||||
Goodwill and intangible assets, net | 1,253,309 | 1,258,928 | |||||||||
Other assets | 860,289 | 799,159 | |||||||||
Total assets | $ | 21,202,279 | $ | 20,082,212 | |||||||
Liabilities and equity | |||||||||||
Liabilities | |||||||||||
Funding facilities | 5,236,034 | $ | 3,548,699 | ||||||||
Other financing facilities and debt | |||||||||||
Senior Notes, net | 4,029,339 | 4,027,970 | |||||||||
Early buy out facility | 423,831 | 672,882 | |||||||||
Accounts payable | 135,039 | 116,331 | |||||||||
Lease liabilities | 448,331 | 422,769 | |||||||||
Forward commitments, at fair value | 87,918 | 25,117 | |||||||||
Investor reserves | 107,134 | 110,147 | |||||||||
Notes payable and due to affiliates | 30,451 | 33,463 | |||||||||
Tax receivable agreement liability | 577,996 | 613,693 | |||||||||
Loans subject to repurchase right from Ginnie Mae | 1,626,587 | 1,642,392 | |||||||||
Other liabilities | 390,274 | 393,200 | |||||||||
Total liabilities | $ | 13,092,934 | $ | 11,606,663 | |||||||
Equity | |||||||||||
Class A common stock, $0.00001 par value - 10,000,000,000 shares authorized, 125,761,073 and 123,491,606 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. | $ | 1 | $ | 1 | |||||||
Class B common stock, $0.00001 par value - 6,000,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and December 31, 2022. | — | — | |||||||||
Class C common stock, $0.00001 par value - 6,000,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and December 31, 2022. | — | — | |||||||||
Class D common stock, $0.00001 par value - 6,000,000,000 shares authorized, 1,848,879,483 shares issued and outstanding as of March 31, 2023 and December 31, 2022. | 19 | 19 | |||||||||
Additional paid-in capital | 294,718 | 276,221 | |||||||||
Retained earnings | 280,997 | 300,394 | |||||||||
Accumulated other comprehensive (loss) income | (32) | 69 | |||||||||
Non-controlling interest | 7,533,642 | 7,898,845 | |||||||||
Total equity | 8,109,345 | 8,475,549 | |||||||||
Total liabilities and equity | $ | 21,202,279 | $ | 20,082,212 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||
Gain on sale of loans | ||||||||||||||
Gain on sale of loans excluding fair value of MSRs, net | $ | 265,003 | $ | 687,170 | ||||||||||
Fair value of originated MSRs | 204,560 | 796,616 | ||||||||||||
Gain on sale of loans, net | 469,563 | 1,483,786 | ||||||||||||
Loan servicing (loss) income | ||||||||||||||
Servicing fee income | 366,385 | 366,214 | ||||||||||||
Change in fair value of MSRs | (398,279) | 454,380 | ||||||||||||
Loan servicing (loss) income, net | (31,894) | 820,594 | ||||||||||||
Interest income | ||||||||||||||
Interest income | 66,744 | 90,540 | ||||||||||||
Interest expense on funding facilities | (29,060) | (41,696) | ||||||||||||
Interest income, net | 37,684 | 48,844 | ||||||||||||
Other income | 190,715 | 317,372 | ||||||||||||
Total revenue, net | 666,068 | 2,670,596 | ||||||||||||
Expenses | ||||||||||||||
Salaries, commissions and team member benefits | 603,775 | 853,915 | ||||||||||||
General and administrative expenses | 195,390 | 275,857 | ||||||||||||
Marketing and advertising expenses | 181,604 | 328,058 | ||||||||||||
Depreciation and amortization | 30,685 | 21,042 | ||||||||||||
Interest and amortization expense on non-funding debt | 38,333 | 38,664 | ||||||||||||
Other expenses | 32,268 | 90,603 | ||||||||||||
Total expenses | 1,082,055 | 1,608,139 | ||||||||||||
(Loss) income before income taxes | (415,987) | 1,062,457 | ||||||||||||
Benefit from (provision for) income taxes | 4,504 | (25,849) | ||||||||||||
Net (loss) income | (411,483) | 1,036,608 | ||||||||||||
Net loss (income) attributable to non-controlling interest | 392,960 | (982,896) | ||||||||||||
Net (loss) income attributable to Rocket Companies | $ | (18,523) | $ | 53,712 | ||||||||||
(Loss) earnings per share of Class A common stock | ||||||||||||||
Basic | $ | (0.15) | $ | 0.44 | ||||||||||
Diluted | $ | (0.16) | $ | 0.40 | ||||||||||
Weighted average shares outstanding | ||||||||||||||
Basic | 124,732,722 | 122,691,728 | ||||||||||||
Diluted | 1,974,629,808 | 1,975,379,132 | ||||||||||||
Comprehensive income (loss) | ||||||||||||||
Net (loss) income | $ | (411,483) | $ | 1,036,608 | ||||||||||
Cumulative translation adjustment | 7 | 588 | ||||||||||||
Unrealized loss on investment securities | (1,589) | (1,495) | ||||||||||||
Comprehensive (loss) income | (413,065) | 1,035,701 | ||||||||||||
Comprehensive loss (income) attributable to non-controlling interest | 394,441 | (982,049) | ||||||||||||
Comprehensive (loss) income attributable to Rocket Companies | $ | (18,624) | $ | 53,652 |
Class A Common Stock Shares | Class A Common Stock Amount | Class D Common Stock Shares | Class D Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 126,437,703 | $ | 1 | 1,848,879,483 | $ | 19 | $ | 287,558 | $ | 378,005 | $ | 81 | $ | 9,093,868 | $ | 9,759,532 | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 53,712 | — | 982,896 | 1,036,608 | ||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | — | — | 31 | 557 | 588 | ||||||||||||||||||||||||||||||||||||||
Unrealized loss on investment securities | — | — | — | — | — | — | (92) | (1,403) | (1,495) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 186,891 | — | — | — | 3,288 | — | — | 50,093 | 53,381 | ||||||||||||||||||||||||||||||||||||||
Distributions for state taxes on behalf of unit holders (members), net | — | — | — | — | — | (2,171) | — | (33,536) | (35,707) | ||||||||||||||||||||||||||||||||||||||
Distributions to unit holders (members) from subsidiary investment, net | — | — | — | — | 725 | — | — | (1,856,575) | (1,855,850) | ||||||||||||||||||||||||||||||||||||||
Special Dividend to Class A Shareholders, net of forfeitures | — | — | — | — | — | (123,752) | — | (31,830) | (155,582) | ||||||||||||||||||||||||||||||||||||||
Taxes withheld on employees' restricted share award vesting | — | — | — | — | (77) | — | — | (1,220) | (1,297) | ||||||||||||||||||||||||||||||||||||||
Issuance of Class A common Shares under stock compensation and benefit plans | 1,018,875 | — | — | — | 930 | — | — | 12,743 | 13,673 | ||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common Shares | (8,016,465) | — | — | — | (100,162) | — | — | — | (100,162) | ||||||||||||||||||||||||||||||||||||||
Change in controlling interest of investment, net | — | — | — | — | 49,196 | — | 2 | (61,591) | (12,393) | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 119,627,004 | $ | 1 | 1,848,879,483 | $ | 19 | $ | 241,458 | $ | 305,794 | $ | 22 | $ | 8,154,002 | $ | 8,701,296 | |||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 123,491,606 | 1 | 1,848,879,483 | 19 | 276,221 | 300,394 | 69 | 7,898,845 | 8,475,549 | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (18,523) | — | (392,960) | (411,483) | ||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | — | — | — | 7 | 7 | ||||||||||||||||||||||||||||||||||||||
Unrealized loss on investment securities | — | — | — | — | — | — | (101) | (1,488) | (1,589) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 1,390,650 | — | — | — | 3,217 | — | — | 47,596 | 50,813 | ||||||||||||||||||||||||||||||||||||||
Distributions for state taxes on behalf of unit holders (members), net | — | — | — | — | — | (209) | — | 326 | 117 | ||||||||||||||||||||||||||||||||||||||
Special Dividend to Class A Shareholders, net of forfeitures | — | — | — | — | — | 23 | — | 347 | 370 | ||||||||||||||||||||||||||||||||||||||
Taxes withheld on employees' restricted share award vesting | — | — | — | — | (444) | — | — | (6,550) | (6,994) | ||||||||||||||||||||||||||||||||||||||
Issuance of Class A common Shares under stock compensation and benefit plans | 878,817 | — | — | — | 456 | — | — | 6,794 | 7,250 | ||||||||||||||||||||||||||||||||||||||
Change in controlling interest of investment, net | — | — | — | — | 15,268 | (688) | — | (19,275) | (4,695) | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | 125,761,073 | $ | 1 | 1,848,879,483 | $ | 19 | $ | 294,718 | $ | 280,997 | $ | (32) | $ | 7,533,642 | $ | 8,109,345 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating activities | |||||||||||
Net (loss) income | $ | (411,483) | $ | 1,036,608 | |||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 30,685 | 21,042 | |||||||||
(Benefit from) provision for deferred income taxes | (8,505) | 1,786 | |||||||||
Origination of mortgage servicing rights | (204,560) | (796,616) | |||||||||
Change in fair value of MSRs, net | 397,681 | (478,655) | |||||||||
Gain on sale of loans excluding fair value of MSRs, net | (265,003) | (687,170) | |||||||||
Disbursements of mortgage loans held for sale | (16,785,731) | (54,173,353) | |||||||||
Proceeds from sale of loans held for sale | 15,994,526 | 63,189,908 | |||||||||
Share-based compensation expense | 51,960 | 55,593 | |||||||||
Change in assets and liabilities | |||||||||||
Due from affiliates | 2,722 | (1,044) | |||||||||
Other assets | (61,435) | (37,034) | |||||||||
Accounts payable | 18,708 | 17,316 | |||||||||
Due to affiliates | (3,187) | (4,168) | |||||||||
Premium recapture and indemnification losses paid | (50,318) | (515) | |||||||||
Other liabilities | (31,753) | 628,602 | |||||||||
Total adjustments | $ | (914,210) | $ | 7,735,692 | |||||||
Net cash (used in) provided by operating activities | $ | (1,325,693) | $ | 8,772,300 | |||||||
Investing activities | |||||||||||
Proceeds from sale of MSRs | $ | 81,539 | $ | 253,946 | |||||||
Net purchase of MSRs | (3,285) | (15,581) | |||||||||
Decrease in mortgage loans held for investment | 3,190 | 7,107 | |||||||||
Purchases of investment securities, available for sale | (5,472) | — | |||||||||
Sales of investment securities, available for sale | 6,479 | — | |||||||||
Purchase and other additions of property and equipment, net of disposals | (23,822) | (26,742) | |||||||||
Net cash provided by investing activities | $ | 58,629 | $ | 218,730 | |||||||
Financing activities | |||||||||||
Net borrowings (payments) on funding facilities | $ | 1,687,335 | $ | (6,281,985) | |||||||
Net payments on lines of credit | — | (75,000) | |||||||||
Net payments on early buy out facility | (249,051) | (198,617) | |||||||||
Net borrowings on notes payable from unconsolidated affiliates | 174 | 174 | |||||||||
Stock issuance | 6,122 | 11,575 | |||||||||
Share repurchase | — | (100,162) | |||||||||
Taxes withheld on employees' restricted share award vesting | (6,994) | (1,297) | |||||||||
Distributions to other unit holders (members) of Holdings, net | (1,938) | (2,170,216) | |||||||||
Net cash provided by (used in) financing activities | $ | 1,435,648 | $ | (8,815,528) | |||||||
Effects of exchange rate changes on cash and cash equivalents | 7 | 589 | |||||||||
Net increase in cash and cash equivalents and restricted cash | 168,591 | 176,091 | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 789,099 | 2,211,597 | |||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 957,690 | $ | 2,387,688 | |||||||
Non-cash activities | |||||||||||
Loans transferred to other real estate owned | $ | 726 | $ | 435 | |||||||
Supplemental disclosures | |||||||||||
Cash paid for interest on related party borrowings | $ | 2,452 | $ | 1,231 |
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | 893,383 | $ | 2,310,661 | |||||||
Restricted cash | 64,307 | 77,027 | |||||||||
Total cash, cash equivalents, and restricted cash in the statement of cash flows | $ | 957,690 | $ | 2,387,688 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Balance at March 31, 2023 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Mortgage loans held for sale (1) | $ | — | $ | 7,674,953 | $ | 763,761 | $ | 8,438,714 | |||||||||||||||
IRLCs | — | — | 182,112 | 182,112 | |||||||||||||||||||
MSRs | — | — | 6,669,939 | 6,669,939 | |||||||||||||||||||
Forward commitments | — | 5,101 | — | 5,101 | |||||||||||||||||||
Investment securities (2) | — | 38,201 | — | 38,201 | |||||||||||||||||||
Non-mortgage loans held for sale (2) | — | — | 32,490 | 32,490 | |||||||||||||||||||
Total assets | $ | — | $ | 7,718,255 | $ | 7,648,302 | $ | 15,366,557 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Forward commitments | $ | — | $ | 87,918 | $ | — | $ | 87,918 | |||||||||||||||
Total liabilities | $ | — | $ | 87,918 | $ | — | $ | 87,918 | |||||||||||||||
Balance at December 31, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Mortgage loans held for sale (1) | $ | — | $ | 6,260,745 | $ | 1,082,730 | $ | 7,343,475 | |||||||||||||||
IRLCs | — | — | 90,635 | 90,635 | |||||||||||||||||||
MSRs | — | — | 6,946,940 | 6,946,940 | |||||||||||||||||||
Forward commitments | — | 22,444 | — | 22,444 | |||||||||||||||||||
Total assets | $ | — | $ | 6,283,189 | $ | 8,120,305 | $ | 14,403,494 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Forward commitments | $ | — | $ | 25,117 | $ | — | $ | 25,117 | |||||||||||||||
Total liabilities | $ | — | $ | 25,117 | $ | — | $ | 25,117 |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Unobservable Input | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Mortgage loans held for sale | ||||||||||||||||||||||||||
Model pricing | 65% - 100% | 88 | % | 67% - 100% | 86 | % | ||||||||||||||||||||
IRLCs | ||||||||||||||||||||||||||
Loan funding probability | 0% - 100% | 71 | % | 0% - 100% | 68 | % | ||||||||||||||||||||
MSRs | ||||||||||||||||||||||||||
Discount rate | 9.5% - 12.5% | 9.9 | % | 9.5% - 12.5% | 9.9 | % | ||||||||||||||||||||
Conditional prepayment rate | 6.2% - 28.6% | 7.1 | % | 6.1% - 26.6% | 6.9 | % | ||||||||||||||||||||
Non-mortgage loans held for sale | ||||||||||||||||||||||||||
Discount rate | 6.2% - 8.5% | 8.2 | % | N/A | N/A |
Mortgage Loans Held for Sale | IRLCs | Non-Mortgage Loans Held for Sale | |||||||||||||||
Balance at December 31, 2022 | $ | 1,082,730 | $ | 90,635 | $ | — | |||||||||||
Transfers in (1) | 211,058 | — | 32,838 | ||||||||||||||
Transfers out/principal reductions (1) | (600,454) | — | — | ||||||||||||||
Net transfers and revaluation gains | — | 91,477 | — | ||||||||||||||
Total gains (losses) included in net income | 70,427 | — | (348) | ||||||||||||||
Balance at March 31, 2023 | $ | 763,761 | $ | 182,112 | $ | 32,490 | |||||||||||
Balance at December 31, 2021 | $ | 2,309,366 | $ | 538,861 | $ | — | |||||||||||
Transfers in (1) | 522,640 | — | — | ||||||||||||||
Transfers out/principal reductions (1) | (618,320) | — | — | ||||||||||||||
Net transfers and revaluation losses | — | (325,651) | — | ||||||||||||||
Total losses included in net income | (34,924) | — | — | ||||||||||||||
Balance at March 31, 2022 | $ | 2,178,762 | $ | 213,210 | $ | — | |||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Debt Securities: | |||||||||||||||||||||||
U.S. Treasury | $ | 23,902 | $ | 1 | $ | (1,231) | $ | 22,672 | |||||||||||||||
Corporate and Other | 15,888 | 36 | (395) | 15,529 | |||||||||||||||||||
Total | $ | 39,790 | $ | 37 | $ | (1,626) | $ | 38,201 |
U.S. Treasury | Corporate and Other | ||||||||||||||||||||||
Amortized Costs | Fair Value | Amortized Costs | Fair Value | ||||||||||||||||||||
Less than 1 year | $ | — | $ | — | $ | 5,957 | $ | 5,838 | |||||||||||||||
1-5 years | 23,902 | 22,672 | 8,955 | 8,716 | |||||||||||||||||||
5-10 years | — | — | 976 | 975 | |||||||||||||||||||
10 years and beyond | $ | — | $ | — | $ | — | $ | — |
Fair Value | Principal Amount Due Upon Maturity | Difference (1) | |||||||||||||||
Balance at March 31, 2023 | |||||||||||||||||
Mortgage loans held for sale | $ | 8,438,714 | $ | 8,429,074 | $ | 9,640 | |||||||||||
Non-mortgage loans held for sale | $ | 32,490 | $ | 32,838 | $ | (348) | |||||||||||
Balance at December 31, 2022 | $ | 7,343,475 | $ | 7,424,223 | $ | (80,748) | |||||||||||
Mortgage loans held for sale |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Senior Notes, due 10/15/2026 | $ | 1,142,003 | $ | 1,029,606 | $ | 1,141,432 | $ | 984,963 | |||||||||||||||
Senior Notes, due 1/15/2028 | 61,363 | 58,700 | 61,330 | 57,039 | |||||||||||||||||||
Senior Notes, due 3/1/2029 | 744,066 | 645,188 | 743,815 | 595,493 | |||||||||||||||||||
Senior Notes, due 3/1/2031 | 1,239,296 | 1,043,550 | 1,238,958 | 961,450 | |||||||||||||||||||
Senior Notes, due 10/15/2033 | 842,611 | 681,258 | 842,435 | 625,175 | |||||||||||||||||||
Total Senior Notes, net | $ | 4,029,339 | $ | 3,458,302 | $ | 4,027,970 | $ | 3,224,120 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Fair value, beginning of period | $ | 6,946,940 | $ | 5,385,613 | ||||||||||
MSRs originated | 204,560 | 796,616 | ||||||||||||
MSRs sales | (81,538) | (253,997) | ||||||||||||
Changes in fair value: | ||||||||||||||
Due to changes in valuation model inputs or assumptions (1) | (217,802) | 767,271 | ||||||||||||
(182,221) | (285,215) | |||||||||||||
Total changes in fair value | (400,023) | 482,056 | ||||||||||||
Fair value, end of period | $ | 6,669,939 | $ | 6,410,288 |
March 31, 2023 | December 31, 2022 | ||||||||||
Discount rate | 9.9 | % | 9.9 | % | |||||||
Prepayment speeds | 7.1 | % | 6.9 | % | |||||||
Life (in years) | 7.97 | 8.08 |
Discount Rate | Prepayment Speeds | ||||||||||||||||||||||
100 BPS Adverse Change | 200 BPS Adverse Change | 10% Adverse Change | 20% Adverse Change | ||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Mortgage servicing rights | $ | (282,637) | $ | (539,918) | $ | (171,374) | $ | (334,669) | |||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Mortgage servicing rights | $ | (295,754) | $ | (565,704) | $ | (171,297) | $ | (334,664) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Balance at the beginning of period | $ | 7,343,475 | $ | 19,323,568 | |||||||
Disbursements of mortgage loans held for sale | 16,785,731 | 54,173,353 | |||||||||
Proceeds from sales of mortgage loans held for sale (1) | (15,987,171) | (63,180,565) | |||||||||
Gain on sale of mortgage loans excluding fair value of other financial instruments, net (2) | 296,679 | 368,788 | |||||||||
Balance at the end of period | $ | 8,438,714 | $ | 10,685,144 |
Facility Type | Collateral | Maturity | Line Amount | Committed Line Amount | Outstanding Balance as of March 31, 2023 | Outstanding Balance as of December 31, 2022 | ||||||||||||||||||||||||||||||||
Mortgage Loan funding: | ||||||||||||||||||||||||||||||||||||||
1) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 10/20/2023 | $ | 250,000 | $ | 50,000 | $ | — | $ | 49,381 | ||||||||||||||||||||||||||||
2) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 11/30/2023 | 1,000,000 | 100,000 | 550,258 | 138,057 | ||||||||||||||||||||||||||||||||
3) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 8/9/2024 | 2,000,000 | 250,000 | 255,281 | 702,128 | ||||||||||||||||||||||||||||||||
4) Master Repurchase Agreement (1)(6) | Mortgage loans held for sale (5) | 1/26/2024 | 1,500,000 | 550,000 | 754,210 | 917,621 | ||||||||||||||||||||||||||||||||
5) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 5/4/2024 | 1,000,000 | 250,000 | 649,929 | 493,029 | ||||||||||||||||||||||||||||||||
6) Master Repurchase Agreement (2)(6) | Mortgage loans held for sale (5) | 9/9/2024 | 1,500,000 | 250,000 | 87,888 | 101,152 | ||||||||||||||||||||||||||||||||
7) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 9/22/2023 | 1,250,000 | 250,000 | 181,107 | 186,707 | ||||||||||||||||||||||||||||||||
8) Master Repurchase Agreement (6) | Mortgage loans held for sale (5) | 9/27/2024 | 750,000 | 100,000 | 544,729 | 171,642 | ||||||||||||||||||||||||||||||||
$ | 9,250,000 | $ | 1,800,000 | $ | 3,023,402 | $ | 2,759,717 | |||||||||||||||||||||||||||||||
Mortgage Loan Early Funding: | ||||||||||||||||||||||||||||||||||||||
9) Early Funding Facility (3)(6) | Mortgage loans held for sale (5) | (3) | $ | 5,000,000 | $ | — | $ | 1,262,204 | $ | 561,874 | ||||||||||||||||||||||||||||
10) Early Funding Facility (4)(6) | Mortgage loans held for sale (5) | (4) | 2,000,000 | — | 932,128 | 227,108 | ||||||||||||||||||||||||||||||||
7,000,000 | — | 2,194,332 | 788,982 | |||||||||||||||||||||||||||||||||||
Total Mortgage Funding Facilities | $ | 16,250,000 | $ | 1,800,000 | $ | 5,217,734 | $ | 3,548,699 |
Facility Type | Collateral | Maturity | Line Amount | Committed Line Amount | Outstanding Balance Outstanding Balance as of March 31, 2023 | Outstanding Balance Outstanding Balance as of December 31, 2022 | ||||||||||||||||||||||||||||||||
Personal Loan funding: | ||||||||||||||||||||||||||||||||||||||
1) Revolving Credit and Security Agreement (1) | Personal loans held for sale | 1/30/2025 | $ | 75,000 | $ | 75,000 | $ | 18,300 | $ | — | ||||||||||||||||||||||||||||
Total Other Funding Facilities | 75,000 | 75,000 | 18,300 | — | ||||||||||||||||||||||||||||||||||
Total Funding Facilities | $ | 16,325,000 | $ | 1,875,000 | $ | 5,236,034 | $ | 3,548,699 |
Facility Type | Collateral | Maturity | Line Amount | Committed Line Amount | Outstanding Balance Outstanding Balance as of March 31, 2023 | Outstanding Balance Outstanding Balance as of December 31, 2022 | ||||||||||||||||||||||||||||||||
Line of Credit Financing Facilities | ||||||||||||||||||||||||||||||||||||||
1) Unsecured line of credit (1) | — | 7/27/2025 | $ | 2,000,000 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
2) Unsecured line of credit (1) | — | 7/31/2025 | 100,000 | — | — | — | ||||||||||||||||||||||||||||||||
3) Revolving credit facility (3) | — | 8/10/2025 | 1,000,000 | 1,000,000 | — | — | ||||||||||||||||||||||||||||||||
4) MSR line of credit (3) | MSRs | 10/20/2023 | 200,000 | — | — | — | ||||||||||||||||||||||||||||||||
5) MSR line of credit (2)(3) | MSRs | 9/9/2024 | 1,500,000 | 250,000 | — | — | ||||||||||||||||||||||||||||||||
$ | 4,800,000 | $ | 1,250,000 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Early Buyout Financing Facility | ||||||||||||||||||||||||||||||||||||||
6) Early buy out facility (3) | Loans/ Advances | 3/13/2024 | $ | 1,500,000 | $ | — | $ | 423,831 | $ | 672,882 |
Facility Type | Maturity | Interest Rate | Outstanding Principal March 31, 2023 | Outstanding Principal December 31, 2022 | ||||||||||||||||||||||
Unsecured Senior Notes (1) | 10/15/2026 | 2.875 | % | $ | 1,150,000 | $ | 1,150,000 | |||||||||||||||||||
Unsecured Senior Notes (2) | 1/15/2028 | 5.250 | % | 61,985 | 61,985 | |||||||||||||||||||||
Unsecured Senior Notes (3) | 3/1/2029 | 3.625 | % | 750,000 | 750,000 | |||||||||||||||||||||
Unsecured Senior Notes (4) | 3/1/2031 | 3.875 | % | 1,250,000 | 1,250,000 | |||||||||||||||||||||
Unsecured Senior Notes (5) | 10/15/2033 | 4.000 | % | 850,000 | 850,000 | |||||||||||||||||||||
Total Senior Notes | $ | 4,061,985 | $ | 4,061,985 | ||||||||||||||||||||||
Weighted Average Interest Rate | 3.59 | % | 3.59 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Hedging (losses) gains (1) | $ | (79,133) | $ | 1,533,145 |
Notional Value | Derivative Asset | Derivative Liability | |||||||||||||||
Balance at March 31, 2023: | |||||||||||||||||
IRLCs, net of loan funding probability (1) | $ | 7,105,543 | $ | 182,112 | $ | — | |||||||||||
Forward commitments (2) | $ | 13,494,056 | $ | 5,101 | $ | 87,918 | |||||||||||
Balance at December 31, 2022: | |||||||||||||||||
IRLCs, net of loan funding probability (1) | $ | 4,373,465 | $ | 90,635 | $ | — | |||||||||||
Forward commitments (2) | $ | 10,963,989 | $ | 22,444 | $ | 25,117 |
Gross Amount of Recognized Assets or Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | |||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||
Balance at March 31, 2023: | |||||||||||||||||
Forward commitments | $ | 9,978 | $ | (4,877) | $ | 5,101 | |||||||||||
Balance at December 31, 2022: | |||||||||||||||||
Forward commitments | $ | 71,484 | $ | (49,040) | $ | 22,444 | |||||||||||
Offsetting of Derivative Liabilities | |||||||||||||||||
Balance at March 31, 2023: | |||||||||||||||||
Forward commitments | $ | (144,984) | $ | 57,066 | $ | (87,918) | |||||||||||
Balance at December 31, 2022: | |||||||||||||||||
Forward commitments | $ | (69,007) | $ | 43,890 | $ | (25,117) |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Fixed Rate | Variable Rate | Fixed Rate | Variable Rate | ||||||||||||||||||||
IRLCs | $ | 9,518,644 | $ | 421,972 | $ | 6,108,132 | $ | 326,638 |
Three Months Ended March 31, 2023 | Direct to Consumer | Partner Network | Segments Total | All Other | Total | |||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Gain on sale | $ | 390,342 | $ | 71,993 | $ | 462,335 | $ | 7,228 | $ | 469,563 | ||||||||||||||||||||||
Interest income | 38,123 | 27,672 | 65,795 | 949 | 66,744 | |||||||||||||||||||||||||||
Interest expense on funding facilities | (16,808) | (12,198) | (29,006) | (54) | (29,060) | |||||||||||||||||||||||||||
Servicing fee income | 365,217 | — | 365,217 | 1,168 | 366,385 | |||||||||||||||||||||||||||
Changes in fair value of MSRs | (398,279) | — | (398,279) | — | (398,279) | |||||||||||||||||||||||||||
Other income | 116,520 | 3,618 | 120,138 | 70,577 | 190,715 | |||||||||||||||||||||||||||
Total U.S. GAAP Revenue, net | 495,115 | 91,085 | 586,200 | 79,868 | 666,068 | |||||||||||||||||||||||||||
Change in fair value of MSRs due to valuation assumptions, net of hedges | 216,058 | — | 216,058 | — | 216,058 | |||||||||||||||||||||||||||
Adjusted revenue | 711,173 | 91,085 | 802,258 | 79,868 | 882,126 | |||||||||||||||||||||||||||
Less: Directly attributable expenses | 505,583 | 65,359 | 570,942 | 76,843 | 647,785 | |||||||||||||||||||||||||||
Contribution margin | $ | 205,590 | $ | 25,726 | $ | 231,316 | $ | 3,025 | $ | 234,341 |
Three Months Ended March 31, 2022 | Direct to Consumer | Partner Network | Segments Total | All Other | Total | |||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Gain on sale | $ | 1,217,103 | $ | 258,056 | $ | 1,475,159 | $ | 8,627 | $ | 1,483,786 | ||||||||||||||||||||||
Interest income | 57,601 | 32,168 | 89,769 | 771 | 90,540 | |||||||||||||||||||||||||||
Interest expense on funding facilities | (26,727) | (14,969) | (41,696) | — | (41,696) | |||||||||||||||||||||||||||
Servicing fee income | 365,499 | — | 365,499 | 715 | 366,214 | |||||||||||||||||||||||||||
Changes in fair value of MSRs | 454,380 | — | 454,380 | — | 454,380 | |||||||||||||||||||||||||||
Other income | 167,027 | 16,477 | 183,504 | 133,868 | 317,372 | |||||||||||||||||||||||||||
Total U.S. GAAP Revenue, net | 2,234,883 | 291,732 | 2,526,615 | 143,981 | 2,670,596 | |||||||||||||||||||||||||||
Change in fair value of MSRs due to valuation assumptions, net of hedges | (739,217) | — | (739,217) | — | (739,217) | |||||||||||||||||||||||||||
Adjusted revenue | 1,495,666 | 291,732 | 1,787,398 | 143,981 | 1,931,379 | |||||||||||||||||||||||||||
Less: Directly attributable expenses | 869,210 | 120,034 | 989,244 | 118,872 | 1,108,116 | |||||||||||||||||||||||||||
Contribution margin | $ | 626,456 | $ | 171,698 | $ | 798,154 | $ | 25,109 | $ | 823,263 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Contribution margin, excluding change in MSRs due to valuation assumptions | $ | 234,341 | $ | 823,263 | |||||||
Change in fair value of MSRs due to valuation assumptions, net of hedges | (216,058) | 739,217 | |||||||||
Contribution margin, including change in MSRs due to valuation assumptions | 18,283 | 1,562,480 | |||||||||
Less expenses not allocated to segments: | |||||||||||
Salaries, commissions and team member benefits | 220,883 | 244,044 | |||||||||
General and administrative expenses | 143,113 | 192,457 | |||||||||
Depreciation and amortization | 30,685 | 21,042 | |||||||||
Interest and amortization expense on non-funding debt | 38,333 | 38,664 | |||||||||
Other expenses | 1,256 | 3,816 | |||||||||
(Loss) income before income taxes | $ | (415,987) | $ | 1,062,457 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Holdings Units | Ownership Percentage | Holdings Units | Ownership Percentage | ||||||||||||||||||||
Rocket Companies, Inc.'s ownership of Holdings Units | 125,761,073 | 6.37 | % | 123,491,606 | 6.26 | % | |||||||||||||||||
Holdings Units held by our Chairman | 1,101,822 | 0.06 | % | 1,101,822 | 0.06 | % | |||||||||||||||||
Holdings Units held by RHI | 1,847,777,661 | 93.57 | % | 1,847,777,661 | 93.68 | % | |||||||||||||||||
Balance at end of period | 1,974,640,556 | 100.00 | % | 1,972,371,089 | 100.00 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Rocket Companies, Inc. sponsored plans | |||||||||||
Restricted stock units | $ | 42,598 | $ | 42,492 | |||||||
Stock options | 8,229 | 9,576 | |||||||||
Team Member Stock Purchase Plan | 1,128 | 2,098 | |||||||||
Subtotal Rocket Companies, Inc. sponsored plans | $ | 51,955 | $ | 54,166 | |||||||
RHI restricted stock units | — | 12,775 | |||||||||
Subsidiary plans | 5 | 169 | |||||||||
Total share-based compensation expense | $ | 51,960 | $ | 67,110 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (loss) income | $ | (411,483) | $ | 1,036,608 | |||||||
Net loss (income) attributable to non-controlling interest | 392,960 | (982,896) | |||||||||
Net (loss) income attributable to Rocket Companies | (18,523) | 53,712 | |||||||||
Add: Reallocation of Net income attributable to vested, undelivered stock awards | — | 32 | |||||||||
Net (loss) income attributable to common shareholders | $ | (18,523) | $ | 53,744 | |||||||
Numerator: | |||||||||||
Net (loss) income attributable to Class A common shareholders - basic | $ | (18,523) | $ | 53,744 | |||||||
Add: Reallocation of net income attributable to dilutive impact of pro-forma conversion of Class D shares to Class A shares (1) | (295,767) | 744,379 | |||||||||
Add: Reallocation of net (loss) income attributable to dilutive impact of share-based compensation awards (2) | (163) | 1,418 | |||||||||
Net (loss) income attributable to Class A common shareholders - diluted | $ | (314,453) | $ | 799,541 | |||||||
Denominator: | |||||||||||
Weighted average shares of Class A common stock outstanding - basic | 124,732,722 | 122,691,728 | |||||||||
Add: Dilutive impact of conversion of Class D shares to Class A shares | 1,848,879,483 | 1,848,879,483 | |||||||||
Add: Dilutive impact of share-based compensation awards (3) | 1,017,603 | 3,807,921 | |||||||||
Weighted average shares of Class A common stock outstanding - diluted | 1,974,629,808 | 1,975,379,132 | |||||||||
(Loss) earnings per share of Class A common stock outstanding - basic | $ | (0.15) | $ | 0.44 | |||||||
(Loss) earnings per share of Class A common stock outstanding - diluted | $ | (0.16) | $ | 0.40 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Total revenue, net | $ | 666,068 | $ | 2,670,596 | |||||||
Change in fair value of MSRs due to valuation assumptions (net of hedges) (1) | 216,058 | (739,217) | |||||||||
Adjusted Revenue | $ | 882,126 | $ | 1,931,379 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Net (loss) income attributable to Rocket Companies | $ | (18,523) | $ | 53,712 | |||||||
Net (loss) income impact from pro forma conversion of Class D common shares to Class A common shares (1) | (392,357) | 983,505 | |||||||||
Adjustment to the benefit from (provision for) income tax (2) | 96,393 | (242,150) | |||||||||
Tax-effected net (loss) income (2) | $ | (314,487) | $ | 795,067 | |||||||
Share-based compensation expense | 51,960 | 67,110 | |||||||||
Change in fair value of MSRs due to valuation assumptions (net of hedges) (3) | 216,058 | (739,217) | |||||||||
Tax impact of adjustments (4) | (65,099) | 169,438 | |||||||||
Other tax adjustments (5) | 973 | 1,000 | |||||||||
Adjusted Net (Loss) Income | $ | (110,595) | $ | 293,398 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (loss) income attributable to Rocket Companies | $ | (18,523) | $ | 53,712 | |||||||
Net (loss) income impact from pro forma conversion of Class D common shares to Class A common shares | (392,357) | 983,505 | |||||||||
(Benefit from) provision for income taxes | (4,504) | 25,849 | |||||||||
Adjusted (loss) income before income taxes | (415,384) | 1,063,066 |
Effective Income Tax Rate for Adjusted Net (Loss) Income | 24.29 | % | 25.21 | % |
Adjusted (benefit from) provision for income taxes | (100,897) | 267,999 | |||||||||
(Benefit from) provision for income taxes | (4,504) | 25,849 | |||||||||
Adjustment to the benefit from (provision for) income tax | $ | 96,393 | $ | (242,150) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Statutory U.S. Federal Income Tax Rate | 21.00 | % | 21.00 | % | |||||||
Canadian taxes | 0.01 | 0.01 | |||||||||
State and Local Income Taxes (net of federal benefit) | 3.28 | 4.20 | |||||||||
Effective Income Tax Rate for Adjusted Net Income (Loss) | 24.29 | % | 25.21 | % |
Three Months Ended March 31, | |||||||||||
($ in thousands, except shares and per share) | 2023 | 2022 | |||||||||
Diluted weighted average Class A Common shares outstanding | 1,974,629,808 | 1,975,379,132 | |||||||||
Assumed pro forma conversion of Class D shares (1) | — | — | |||||||||
Adjusted diluted weighted average shares outstanding | 1,974,629,808 | 1,975,379,132 | |||||||||
Adjusted Net (Loss) Income | $ | (110,595) | $ | 293,398 | |||||||
Adjusted Diluted (Loss) Earnings Per Share | $ | (0.06) | $ | 0.15 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Net (loss) income | $ | (411,483) | $ | 1,036,608 | |||||||
Interest and amortization expense on non-funding debt | 38,333 | 38,664 | |||||||||
Income tax (benefit) provision | (4,504) | 25,849 | |||||||||
Depreciation and amortization | 30,685 | 21,042 | |||||||||
Share-based compensation expense | 51,960 | 67,110 | |||||||||
Change in fair value of MSRs due to valuation assumptions (net of hedges) (1) | 216,058 | (739,217) | |||||||||
Adjusted EBITDA | $ | (78,951) | $ | 450,056 |
Three Months Ended March 31, | |||||||||||
(Units and $ in thousands) | 2023 | 2022 | |||||||||
Loan Production Data | |||||||||||
Closed loan origination volume | $ | 16,929,332 | $ | 53,976,815 | |||||||
Direct to Consumer origination volume | $ | 9,809,699 | $ | 33,126,537 | |||||||
Partner Network origination volume | $ | 7,119,633 | $ | 20,850,278 | |||||||
Gain on sale margin (1) | 2.39 | % | 3.01 | % |
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Servicing Portfolio Data | |||||||||||
Total serviced UPB (includes subserviced) | $ | 524,794,688 | $ | 545,763,625 | |||||||
MSRs UPB of loans serviced | $ | 481,325,241 | $ | 492,368,318 | |||||||
UPB of loans subserviced and temporarily serviced | $ | 43,469,447 | $ | 53,395,307 | |||||||
Total loans serviced (includes subserviced) | 2,516.1 | 2,554.6 | |||||||||
Number of MSRs loans serviced | 2,407.6 | 2,411.4 | |||||||||
Number of loans subserviced and temporarily serviced | 108.5 | 143.2 | |||||||||
MSR fair value multiple (2) | 4.81 | 4.59 | |||||||||
Total serviced MSR delinquency rate (60+) | 1.10 | % | 1.31 | % | |||||||
Net client retention rate (trailing twelve months) (3) | 96 | % | 92 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Other Rocket Companies | |||||||||||
Amrock closings (units) | 35.9 | 168.3 | |||||||||
Rocket Homes real estate transactions | 4.6 | 8.2 | |||||||||
Rockethomes.com average unique monthly visitors (4) | 1,112.0 | 2,591.4 | |||||||||
Rocket Loans closed (units) | 8.5 | 5.3 | |||||||||
Total Other Rocket Companies gross revenue | $ | 82,112 | $ | 264,260 | |||||||
Total Other Rocket Companies net revenue (5) | $ | 80,352 | $ | 261,915 |
Condensed Statement of Operations Data | Three Months Ended March 31, | |||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||
Revenue | ||||||||||||||
Gain on sale of loans, net | $ | 469,563 | $ | 1,483,786 | ||||||||||
Servicing fee income | 366,385 | 366,214 | ||||||||||||
Change in fair value of MSRs | (398,279) | 454,380 | ||||||||||||
Interest income, net | 37,684 | 48,844 | ||||||||||||
Other income | 190,715 | 317,372 | ||||||||||||
Total revenue, net | $ | 666,068 | $ | 2,670,596 | ||||||||||
Expenses | ||||||||||||||
Salaries, commissions and team member benefits | 603,775 | 853,915 | ||||||||||||
General and administrative expenses | 195,390 | 275,857 | ||||||||||||
Marketing and advertising expenses | 181,604 | 328,058 | ||||||||||||
Interest and amortization expense on non-funding-debt | 38,333 | 38,664 | ||||||||||||
Other expenses | 62,953 | 111,645 | ||||||||||||
Total expenses | $ | 1,082,055 | $ | 1,608,139 | ||||||||||
(Loss) income before income taxes | (415,987) | 1,062,457 | ||||||||||||
Benefit from (provision for) income taxes | 4,504 | (25,849) | ||||||||||||
Net (loss) income | (411,483) | 1,036,608 | ||||||||||||
Net loss (income) attributable to non-controlling interest | 392,960 | (982,896) | ||||||||||||
Net (loss) income attributable to Rocket Companies | $ | (18,523) | $ | 53,712 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Net gain (loss) on sale of loans (1) | $ | 207,972 | $ | (125,594) | |||||||
Fair value of originated MSRs | 204,560 | 796,616 | |||||||||
Provision for investor reserves | (47,305) | (2,386) | |||||||||
Fair value adjustment on loans held for sale and IRLCs | 177,132 | (743,501) | |||||||||
Revaluation from forward commitments economically hedging loans held for sale and IRLCs | (72,796) | 1,558,651 | |||||||||
Gain on sale of loans, net | $ | 469,563 | $ | 1,483,786 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Retained servicing fee | $ | 353,861 | $ | 356,551 | |||||||
Subservicing income | 2,288 | 2,320 | |||||||||
Ancillary income | 10,236 | 7,343 | |||||||||
Servicing fee income | 366,385 | 366,214 | |||||||||
Change in valuation model inputs or assumptions (1) | (218,473) | 764,723 | |||||||||
Change in fair value of MSRs hedge | 2,415 | (25,506) | |||||||||
Collection / realization of cash flows | (182,221) | (284,837) | |||||||||
Change in fair value of MSRs | (398,279) | 454,380 | |||||||||
Loan servicing (loss) income, net | $ | (31,894) | $ | 820,594 |
March 31, | ||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||
MSRs UPB of loans serviced | $ | 481,325,241 | $ | 492,368,318 | ||||||||||
Number of MSRs loans serviced | 2,407,623 | 2,411,386 | ||||||||||||
UPB of loans subserviced and temporarily serviced | $ | 43,469,447 | $ | 53,395,307 | ||||||||||
Number of loans subserviced and temporarily serviced | 108,469 | 143,231 | ||||||||||||
Total serviced UPB | $ | 524,794,688 | $ | 545,763,625 | ||||||||||
Total loans serviced | 2,516,092 | 2,554,617 | ||||||||||||
MSRs fair value | $ | 6,669,939 | $ | 6,410,288 | ||||||||||
Total serviced delinquency count (60+) as % of total | 1.10% | 1.31% | ||||||||||||
Weighted average credit score | 735 | 737 | ||||||||||||
Weighted average LTV | 71.13% | 70.51% | ||||||||||||
Weighted average loan rate | 3.45% | 3.18% | ||||||||||||
Weighted average service fee | 0.29% | 0.28% |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Interest income | $ | 66,744 | $ | 90,540 | |||||||
Interest expense on funding facilities | (29,060) | (41,696) | |||||||||
Interest income, net | $ | 37,684 | $ | 48,844 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Deposit interest income | $ | 69,155 | $ | 8,007 | |||||||
Amrock revenue | 58,996 | 225,946 | |||||||||
Rocket Money revenue | 45,382 | 33,011 | |||||||||
Rocket Homes revenue | 7,008 | 11,406 | |||||||||
Rocket Loans revenue | 3,438 | 24,564 | |||||||||
Other (1) | 6,736 | 14,438 | |||||||||
Total Other income | $ | 190,715 | $ | 317,372 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Salaries, commissions and team member benefits | $ | 603,775 | $ | 853,915 | |||||||
General and administrative expenses | 195,390 | 275,857 | |||||||||
Marketing and advertising expenses | 181,604 | 328,058 | |||||||||
Interest and amortization expense on non-funding debt | 38,333 | 38,664 | |||||||||
Other expenses | 62,953 | 111,645 | |||||||||
Total expenses | $ | 1,082,055 | $ | 1,608,139 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Sold Loan Volume | $ | 8,811,452 | $ | 36,164,727 | |||||||
Sold Loan Gain on Sale Margin | 3.71 | % | 4.00 | % | |||||||
Revenue | |||||||||||
Gain on sale | $ | 390,342 | $ | 1,217,103 | |||||||
Interest income | 38,123 | 57,601 | |||||||||
Interest expense on funding facilities | (16,808) | (26,727) | |||||||||
Service fee income | 365,217 | 365,499 | |||||||||
Changes in fair value of MSRs | (398,279) | 454,380 | |||||||||
Other income | 116,520 | 167,027 | |||||||||
Total Revenue, net | $ | 495,115 | $ | 2,234,883 | |||||||
Change in fair value of MSRs due to valuation assumptions, net of hedges | 216,058 | (739,217) | |||||||||
Adjusted Revenue | $ | 711,173 | $ | 1,495,666 | |||||||
Less: Directly Attributable Expenses (1) | 505,583 | 869,210 | |||||||||
Contribution Margin | $ | 205,590 | $ | 626,456 |
Three Months Ended March 31, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Sold Loan Volume | $ | 6,583,687 | $ | 26,033,374 | |||||||
Sold Loan Gain on Sale Margin | 0.83 | % | 0.91 | % | |||||||
Revenue | |||||||||||
Gain on sale | $ | 71,993 | $ | 258,056 | |||||||
Interest income | 27,672 | 32,168 | |||||||||
Interest expense on funding facilities | (12,198) | (14,969) | |||||||||
Other income | 3,618 | 16,477 | |||||||||
Total Revenue, net | $ | 91,085 | $ | 291,732 | |||||||
Change in fair value of MSRs due to valuation assumptions, net of hedges | — | — | |||||||||
Adjusted Revenue | $ | 91,085 | $ | 291,732 | |||||||
Less: Directly Attributable Expenses | 65,359 | 120,034 | |||||||||
Total Contribution Margin | $ | 25,726 | $ | 171,698 |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | Fifth Amendment to Lease, dated January 1, 2023, by and between 615 W Lafayette Master Tenant LLC, successor landlord to 615 West Lafayette LLC, and Rocket Mortgage, LLC (formerly known as Quicken Loans, LLC, successor-by-conversion to Quicken Loans Inc.), as tenant (incorporated herein by reference to Exhibit 10.65 to the Company's Form 10-K, filed on March 1, 2023) | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
* | Filed herewith. | |||||||
# | Certain portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request. |
Rocket Companies, Inc. | ||||||||||||||
May 10, 2023 | By: | /s/ Brian Brown | ||||||||||||
Date | Name: Brian Brown | |||||||||||||
Chief Financial Officer and Treasurer | ||||||||||||||
(Principal Financial Officer, Principal Accounting Officer) |
1 Year Rocket Companies Chart |
1 Month Rocket Companies Chart |
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