Skyhigh Earnings For Michigan’s Rocket Companies

Top executives at Detroit’s Rocket Companies didn’t order a big fireworks display this week. But it would have been fitting.  Rocket Mortgage and its related companies are coming through with a sky-high earnings report for the third quarter.

Rocket is reporting, just for the most recent quarter, a 506% increase in earnings compared to the 3^rd quarter of 2019. The total is just shy of $3 billion. The massive Detroit based home lending company reported its financials to investors during a virtual event along with a hard copy report posted on the Rocket Companies website. The monumental earnings for the quarter were pushed along by a 122% increase in closed home loans. That amounted to $89 billion.

CEO Jay Farner is telling investors, “In the midst of the pandemic, we were able to help an unprecedented number of Americans buy and refinance homes, providing financial relief through our tech-driven platform and award-winning service. Rocket Companies assisted more clients in the third quarter of 2020 than any quarter in our 35-year history. More importantly, the Company did this while maintaining industry-leading margins and profitability, demonstrating the sheer power of our platform as Rocket executes at incredible scale.”

No one is questioning the basis for that wide-ranging statement.  Farner and Rocket founder Dan Gilbert were able to ring the opening bell at the New York Stock exchange earlier this year as they celebrated the company’s initial public offering of stock.  Gilbert is now ranked as the 28^th wealthiest person in the world.