Rocket rolls out loyalty program offering closing cost discounts

Rocket Cos. unveiled a new loyalty rewards program offering closing cost discounts, the latest in a series of marketing initiatives and products the company has launched this year as business slows.

The Rocket Rewards program will initially be aimed at potential home buyers, providing them opportunities to earn points by engaging in activities on the company's website, such as watching videos, reading articles about homeownership or using its mortgage calculator. 

"Phase one of Rocket Rewards empowers consumers to gain knowledge and understanding of the home-buying process while simultaneously accruing points, and ultimately money, that can help reduce costs when they are ready to buy a home," said Jenn Steeves-Kiss, chief experience officer for Rocket Central, the administrative hub for the family of businesses belonging to the Detroit-based enterprise.

Members will also earn 7,500 points, the equivalent of $75, upon signing up for an account.

In the first stages of the program, points can be redeemed to save on closing costs when a purchase is financed through Rocket Mortgage. 

"We know not every client is ready to get a mortgage with us at this moment, but, by banking rewards that can build over time, we are delivering a value-add," said Jay Farner, CEO of Rocket Cos., in a press release.

Rocket Rewards was announced as mortgage companies continue to seek new ways of attracting customers as business shrinks. The Mortgage Bankers Association recently reported the number of new loan applications had fallen to a 25-year low, with no expectations for annual volumes to turn around until at least 2024. 

Between the first and second quarters this year, loan production volume at Rocket Mortgage fell from $62.2 billion to $33.1 billion. Mortgage operations make up the vast majority of net revenue for the company, accounting for almost $1.3 billion, compared to just over $109 million for other Rocket brands. Rocket Cos. will announce its third-quarter numbers on Nov. 3.

In addition to Rocket Mortgage, the parent company counts personal finance app Rocket Money, real estate platform Rocket Homes, Rocket Auto, and Rocket Loans in its line of businesses.  

In September, Rocket Mortgage introduced Inflation Buster, a direct-to-consumer program that lowers borrower payments for the first year of a new mortgage. Just a few months prior to that, it rolled out a new home equity loan product. In attempts to cross promote products, the company also opened up access to Rocket Money to its mortgage-servicing customers over the summer.

Rocket's entry into the loyalty-program space also comes as Bilt Rewards, a startup that helps renters build credit history and earn points that can eventually be applied toward down payments or closing costs, has steadily made a name for itself within the housing finance space this year.   

In a 2022 report looking at loyalty trends published by customer-experience management firm Merkle, 79% of consumers said they would be more likely to conduct business with a brand because of affinity programs they offered. The same percentage said discount opportunities were among the benefits of these programs they valued the most. 

Rocket Cos. expects to add new point-earning and redemption opportunities over the coming months that would involve the other brands in its network. Possible rewards include discounts toward personal loans, free premium Rocket Money subscriptions or money off the installation of solar panels, Steeves-Kiss said.