Rocket companies, the parent company of Mortgage Rocket, liquidated another $ 2.48 billion in profits during the fourth quarter, giving the the largest mortgage lender in the nation a total of $ 9.5 billion in profits for 2020.
Rocket originated $ 107.2 billion in mortgages, with a net rate lockout volume of $ 96 billion in the fourth quarter, the company revealed in a filing with the Securities and Exchange Commission on Thursday afternoon.
Rocket managed to produce a capital gain margin of 4.41% in the fourth quarter, up 100 basis points from the fourth quarter of 2019 but down 11 basis points from the third quarter. Revenue for the fourth quarter was $ 4.7 billion, compared with $ 1.9 billion in the prior year’s fourth quarter.
“Rocket Companies’ record fourth quarter and full year 2020 results demonstrate the sheer power of the technology platform we have built and refined for over two decades,” Jay Farner, Rocket Companies Vice President and CEO, said in a statement on Thursday.
For the full year, Rocket generated a staggering $ 320 billion in mortgages and recorded a net rate lockout volume of $ 338.7 billion, year-over-year improvements of 121% and 123%, respectively. This helped generate $ 15.7 billion in total revenue.
Notably, Rocket Companies revealed that its platform generated 153 million unique visitors in 2020, a 61% increase over 2019. “Our vast data lake includes proprietary data on over 58 million consumers and spans to 220 million consumers in total or 85% of the adult population in the United States, “the company said in a statement Thursday. “Rocket Companies’ partner relationships include over 25,000 real estate agents, 50,000 mortgage professionals and 9,000 partners, and our internal Rocket Cloud Force3 includes more than 6,600 professionals.”
That data lake is the key to Rocket’s broader business growth strategy.
“As more consumers shift their preferences to an increasingly digital experience, we are better positioned than ever to provide them with innovative, technology-based solutions that simplify even the most stressful and complex transactions,” Farner said in a statement. “Looking forward, we will continue to invest in our world-class technology solutions that enable us to diversify our business model with a scalable platform.”
Rocket also announced during its earnings call that it has partnered with Morgan Stanley And E-commerce to originate and serve conventional mortgages for their millions of customers, which could significantly increase its purchasing business. Given the rise in rates, investors will likely be delighted to learn about new pipelines for acquiring buying assets.
Rocket expects between $ 98 and $ 103 billion in origination for the first quarter of 2021. Profit margins on sales are expected to fall between 3.6% and 3.9%.
Despite the incredible growth in 2020 and the strength of its platform, Wall Street hasn’t fully embraced the Detroit lender. At the close of trading on Thursday, Rocket Stock it was trading just under $ 20 per share, just above its $ 18 debut in the summer.
In an effort to bring more shareholder value, Rocket said its board of directors approved a significant special dividend of $ 1.11 per share.