Rocket Cos.' fourth quarter earnings gave company management more to smile about following the
The $649 million earned during the period was more than the company made for the whole year, at $636 million.
This compared with
"Reflecting on my first full year as CEO, I joined Rocket for the immense potential to build a legacy, one that's still unfolding, and one that will transform home ownership forever," said Varun Krishna, who joined the company
But a large part of what Krishna addressed occurred after the quarter ended, including the
Reflecting on the outro to the spot, which cut to a live scene at the Superdome where the crowd sang the commercial's theme song, "Take Me Home Country Roads," Krishna declared it to be "an unforgettable experience, proving the power of music and the dream of home ownership and securing Rocket's place in Super Bowl advertising history."
The impact of the commercial was immediate. "Traffic to our digital platform surged, and according to the Harris Poll, Rocket's brand awareness increased by nine points in familiarity and six points in consideration," Krishna noted.
Closed loan volume of $27.8 billion was about $700 million lower than the third quarter when it did $28.5 billion but well above the year ago period's production of $17.3 billion.
Rocket still trails the No. 1 company in volume, United Wholesale Mortgage, which had
For all of 2024, Rocket originated $101.15 billion, versus $78.71 million the prior year. UWM did $139.4 billion throughout 2024.
Fourth quarter gain on sale of 298 basis points was an increase of 30 basis points from the same period in 2023. For the full year, the 295 basis point margin was 32 basis points above where it was for 2023.
During the call, management said it expected the first quarter GOS to be flat with the fourth quarter, "which is essentially in line with our 3.00% blended margin estimate," a flash note from Keefe, Bruyette & Woods said.
Rocket's purchase share grew 8% and that is where it sees its opportunity for growth, especially as America's demographics are shifting, Krishna said.
"The average first time buyer is now 38, nearly a decade older than just 10 years ago, and by 2030, 56% of first-time buyers will be Hispanic, while single female buyers will outnumber males two to one," he explained. "To serve this next generation of homeowners, Rocket's brand must be inclusive, dynamic and reflective of today's ambitious and diverse America."
While its previous brand strategy had been successful for Rocket, it was time for a refresh, added Brian Brown, chief financial officer.
In the current quarter, while January has traditionally been a tough month for originations, February is exceeding Rocket's expectations, Brown said.
"As I look ahead to March, we're also seeing some positive signs, particularly in the home buying space," he added.
Possibly in response to
At Dec. 31, Rocket had a $593 billion servicing portfolio, up 17% from the end of 2023.
Rocket has been a buyer of servicing packages in the past, with Brown noting that in 2024, the number of trades in the marketplace was down compared with the prior three years. Still Rocket was able to acquire around $70 billion in MSRs, with $50 billion coming from bulk purchases while some were from a subservicing relationship.
Servicing purchases remains one of Rocket's biggest priorities in 2025. "It's one of the best uses of capital that…we can deploy," Brown said. "The question is how much will trade next year? That's the part no one really knows."
