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Rocket Mortgage, LLC (formerly known as Quicken Loans LLC) is a
mortgage loan A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any ...
provider. It is headquartered in the One Campus Martius building in the financial district of Downtown Detroit, Michigan. In January 2018, the company became the largest overall retail lender in the U.S. (it is also the largest online retail mortgage lender). Unlike other large mortgage lenders that depend on deposits, Rocket Mortgage relies on wholesale funding to make its loans and uses online applications rather than a branch system. Amrock and One Reverse Mortgage are also part of the Rocket Mortgage Family of Companies. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017.


History

Rock Financial was founded in 1985 by
Dan Gilbert Daniel Gilbert (born January 17, 1962) is an American billionaire businessman, investor, and philanthropist. He is the co-founder and majority owner of Rocket Mortgage, founder of Rock Ventures, and owner of the National Basketball Association' ...
, Ron Berman, Lindsay Gross, and Gary Gilbert. In May 1998, Gilbert took Rock Financial public, launching an IPO underwritten by
Bear Stearns The Bear Stearns Companies, Inc. was a New York-based global investment bank, securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession, and was subsequently sold to JPMorgan Chase. The com ...
. The company started to change course in the late 1990s, shifting from a traditional mortgage provider to an online-focused lender. Traditionally, the home mortgage business in America has been fragmented due to varying regulations in each state and locality. Gilbert challenged this orthodoxy, however, by offering loan applications online that were reviewed by experts versed in the regulations of each region but who were located in a central headquarters.


Quicken Loans

In December 1999, a year and a half after the IPO,
Intuit Inc. Intuit Inc. is an American business software company that specializes in financial software. The company is headquartered in Mountain View, California, and the CEO is Sasan Goodarzi. Intuit's products include the tax preparation application Tu ...
(makers of QuickBooks,
TurboTax TurboTax is a software package for preparation of American income tax returns, produced by Intuit. TurboTax is a market leader in its product segment, competing with H&R Block Tax Software and TaxAct. TurboTax was developed by Michael A. Chipm ...
, and
Quicken Quicken is a personal finance management application originally developed and offered by Intuit, Inc. Intuit sold Quicken to H.I.G. Capital in 2016, and H.I.G. sold Quicken to Aquiline Capital Partners in 2021. Quicken runs on Windows and Mac ...
) purchased Rock Financial Corp. for $532M. The company was renamed Quicken Loans. In June 2002, two and a half years after selling the company, Dan Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for $64M. In 2004, Quicken Loans became a defendant in a class action lawsuit. This was filed against the company on behalf of employees who had worked as loan consultants for any Quicken office within the past three years. The claimants alleged that Quicken violated the
Fair Labor Standards Act The Fair Labor Standards Act of 1938 (FLSA) is a United States labor law that creates the right to a minimum wage, and " time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits employment of minors in "oppr ...
(FLSA) by failing to pay the plaintiffs overtime for working beyond a 40-hour work week. Quicken Loans denied these claims, and said it is not aware of any such violations of the FLSA. On March 17, 2011, a federal jury found in favor of Quicken Loans, ending the seven-year-old lawsuit. The decision means that Quicken Loans is not obligated to pay overtime payments to the plaintiffs. In August 2007, the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response, Quicken Loans discontinued: * Second mortgages * Home equity lines of credit (
HELOC A home equity line of credit, or HELOC ( /ˈhiːˌlɒk/ ''HEE-lok''), is a revolving type of secured loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's prope ...
) *
Alt-A An Alt-A mortgage, short for Alternative A-paper, is a type of U.S. mortgage that, for various reasons, is considered riskier than A-paper, or "prime", and less risky than " subprime," the riskiest category. For these reasons, as well as in some ca ...
products * Deferred interest loans On November 12, 2007, Gilbert announced a development agreement with the city of Detroit to move the company headquarters downtown, consolidating suburban offices.Howes, Daniel (November 12, 2007
Quicken moving to downtown Detroit
''The Detroit News''. Retrieved on November 12, 2007.
The construction sites reserved for development by the agreement included the location of the former Statler Hotel on
Grand Circus Park The Grand Circus Park Historic District contains the Grand Circus Park in Downtown Detroit, Michigan that connects the theatre district with its financial district. It is bisected by Woodward Avenue, four blocks north of Campus Martius Park, a ...
and the former Hudson's location. Quicken Loans moved into its downtown headquarters in August 2010. The initial move brought 1,700 employees to the city. In the spring of 2008, Rock Holdings entered the reverse mortgage market with the acquisition of
One Reverse Mortgage Rocket Mortgage, LLC (formerly known as Quicken Loans LLC) is a mortgage loan provider. It is headquartered in the One Campus Martius building in the financial district of Downtown Detroit, Michigan. In January 2018, the company became the la ...
. The company saw a small drop in employment levels following the 2008 financial crisis. Since 2009, Quicken has been headquartered at
One Campus Martius One Campus Martius is a building located in downtown Detroit, Michigan. It began construction in 2000 and was finished in 2003. It has seventeen floors in total, fifteen above-ground, and two below-ground, and has of office space. The high-ri ...
facing
Campus Martius Park Campus Martius Park ( ') is a re-established park in Downtown Detroit, Michigan. After the fire of 1805, Campus Martius (from the Latin for ''Field of Mars'', where Roman heroes walked) was the focal point of Judge Augustus Woodward's plans to ...
in Detroit. The company also houses its employees in Downtown Detroit's
First National Building The First National Building is a skyscraper and class-A office center in Downtown Detroit, Michigan, within the Detroit Financial District. The building is located across the streets from Cadillac Tower and One Detroit Center, and stands next to ...
, The Qube, Chrysler House,
One Woodward Avenue One Woodward Avenue, formerly known as the Michigan Consolidated Gas Company Building, is a class-A office skyscraper in Downtown Detroit, Michigan. Located next to the city's Civic Center and Financial District, it overlooks the International ...
, and
1001 Woodward 1001 Woodward is a 25-floor office building in Downtown Detroit, Michigan. It replaced the Majestic Building, a 14-story high rise on the same site. The building is located just south of the neighboring David Stott Building, at the corner of Wo ...
, all owned by Quicken Loans' parent company,
Rock Ventures Rock Ventures LLC is the holding company for businessman Dan Gilbert's portfolio of companies, investments, and real estate. It is based in Detroit, Michigan and is also engaged in community development in both Detroit and Cleveland, Ohio. Its ov ...
. In 2014, Quicken Loans grew to be the 2nd largest mortgage lender in the United States, and remains the nation's largest online mortgage lender. The company employs 24,000 people nationwide, with approximately 17,000 now working in the city of Detroit, making it Detroit's largest employer, minority employer, and taxpayer. In January 2018, Quicken Loans became the nation's largest mortgage lender. In August 2018, Quicken Loans parent Rock Holding acquired Dictionary.com and Thesaurus.com from IAC. On October 15, Quicken Loans announced that it was expanding into Canada by opening a tech center across the river in downtown
Windsor, Ontario Windsor is a city in southwestern Ontario, Canada, on the south bank of the Detroit River directly across from Detroit, Michigan, United States. Geographically located within but administratively independent of Essex County, it is the southe ...
. Quicken Loans has consistently been awarded the highest customer satisfaction rating among primary mortgage originators the U.S. for 10 straight years, as well as being one of top 20 companies to work for and a top pick for overall best mortgage lenders, according to Consumers Advocate. On July 7, 2020, it was announced that Quicken Loans had filed paperwork with the U.S. Securities and Exchange Commission to start the process of taking the company public under the name Rocket Companies. On August 6, 2020, Rocket Companies, Inc. went public under the symbol RKT, raising $1.8 billion. For the year ended 2020, Quicken Loans originated over 1.1 million loans valued at $313 billion, these figures are almost twice that of the next largest lender in the U.S.,
United Wholesale Mortgage UWM Holdings Corporation is a national wholesale mortgage lending company headquartered in Pontiac, Michigan. UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspon ...
, which is also headquartered near Detroit. On May 12, 2021 Quicken Loans announced that it would be rebranded to Rocket Mortgage, by July 31, 2021.


Rocket Mortgage

In 2015, Quicken Loans created Rocket Mortgage, the first lender to perform electronic closings (eClosings) in all 50 states. Upon launch,
TechCrunch TechCrunch is an American online newspaper An online newspaper (or electronic news or electronic news publication) is the online version of a newspaper, either as a stand-alone publication or as the online version of a printed periodical. Goi ...
claimed it was the mortgage industry's “iPhone moment” and compared the application process to TurboTax. Rocket owns three patents around verifying client data, filtering it and sourcing it, and extracting it from external parties. In 2019, it filed another patent for data set selection using multi-source constraints. The most recent patent was filed in October 2020 regarding extracting data sets from external data stores. In its first full year, Rocket funded $7 billion in closed loans. J.D. Power named Rocket Mortgage #1 in the nation for client satisfaction in primary mortgage origination in 2020, the 11th consecutive year either Rocket Mortgage or Quicken Loans earned the recognition. As of 2021, Rocket subsidiary Amrock has fulfilled more than 1 million digital mortgage closings. Rocket sponsors the Rocket Mortgage FieldHouse, an arena located in downtown Cleveland, Ohio. It is the home of the
Cleveland Cavaliers The Cleveland Cavaliers (often referred to as the Cavs) are an American professional basketball team based in Cleveland. The Cavaliers compete in the National Basketball Association (NBA) as a member of the league's Eastern Conference Central ...
of the
National Basketball Association The National Basketball Association (NBA) is a professional basketball sports league, league in North America. The league is composed of 30 teams (29 in the United States and 1 in Canada) and is one of the major professional sports leagues i ...
(NBA) and the
Cleveland Monsters The Cleveland Monsters are a professional ice hockey team in the American Hockey League (AHL). The team began play in 2007 as the Lake Erie Monsters and since 2015 has served as the top affiliate of the Columbus Blue Jackets of the National Hock ...
of the
American Hockey League The American Hockey League (AHL) is a professional ice hockey league based in the United States and Canada that serves as the primary developmental league for the National Hockey League (NHL). Since the 2010–11 season, every team in the lea ...
. The arena, formerly known as the Quicken Loans Arena, changed its name to the
Rocket Mortgage FieldHouse Rocket Mortgage FieldHouse is a multi-purpose arena in Cleveland, Ohio. The building is the home of the Cleveland Cavaliers of the National Basketball Association (NBA) and the Cleveland Monsters of the American Hockey League (AHL). It also ...
after the completion of the arena's renovation and expansion in 2019. Rocket Mortgage has launched several initiatives that support its home communities of Detroit, Cleveland, Charlotte, and Phoenix, including veteran homelessness and digital literacy.


See also

*
Rocket Mortgage FieldHouse Rocket Mortgage FieldHouse is a multi-purpose arena in Cleveland, Ohio. The building is the home of the Cleveland Cavaliers of the National Basketball Association (NBA) and the Cleveland Monsters of the American Hockey League (AHL). It also ...
– A multi-purpose arena in Downtown Cleveland, Ohio. *
Suburban Collection Showplace Suburban Collection Showplace is a convention center and exposition center in Novi, Michigan, which forms part of Metro Detroit. Suburban Collection Showplace is owned by TBON, LLC., a corporation located in Novi, but was originally owned by Blair ...
(previously known as the Rock Financial Showplace) – A convention center in Novi, Michigan


References


External links


Quicken Loans
{{Authority control Companies based in Detroit American companies established in 1985 Financial services companies established in 1985 Financial services companies of the United States Mortgage lenders of the United States Rock Ventures Companies listed on the New York Stock Exchange 1985 establishments in Michigan 2020 initial public offerings