Thanks in large part to its online mortgage solution Rocket Mortgage, Quicken Loans has hit an all-time high in closings. According to a recent release from the company, the Detroit-based lender closed more than $96 billion in 2016—a companywide record.
More than $7 billion of that total came from Rocket Mortgage, an online lending solution that makes refinancing and home loan applications completely digital. The platform can verify income, credit, assets, and property valuations; virtually eliminates all paperwork from the homebuying equation; and enables closings 12 days faster than the industry average.
“Rocket Mortgage has forever changed the way people think about getting a mortgage,” said Quicken CEO Jay Farner. “The product has been a success in so many ways, including its strong appeal to first-time homebuyers and ability to remove the intimidating and cumbersome aspects of the traditional mortgage process.”
Rocket Mortgage was launched at the beginning of 2016, and after 11 months of operation, it would rank as one of the top 30 lenders in the nation if it was a standalone lender. Rocket Mortgage saw particular growth after its Super Bowl ad, which posited, "Here's what we were thinking: what if we did for mortgages what the internet did for buying music, and plane tickets and shoes? If it could be that easy, wouldn't more people buy homes?"
Rocket Mortgage is particularly popular with millennials and first-time buyers—two groups that often more technologically savvy than past generations. Millennials were twice as likely to use Rocket Mortgage than other buyers.
“It’s no surprise that Rocket Mortgage is attracting so many first-time homebuyers,” said Laurie Goodman, Co-Director of the Housing Finance Policy Center at the Urban Institute. “The product allows borrowers to qualify for a new mortgage in an automated and highly transparent fashion, without spending hours, or days, cobbling paperwork together.”
But it’s not only millennials using Rocket Mortgage. Other homebuyers are seeking the convenient and digital aspects the lender offers as well.
“While millennials are more likely to use Rocket Mortgage, the product’s user base spans every age group,” Bill Banfield, VP of Capital Markets at Quicken Loans recently told MReport. “Since we launched Rocket Mortgage a year ago, we’ve seen a strong homebuyer population, with two-thirds of clients who use the product being homebuyers. Of those users, 72 percent are first-time homebuyers. This is proof that a completely online and on-demand experience directly appeals to this demographic.”
Regis Hadiaris, Senior Product Manager at Quicken, said the flexible hours and technology appeal to all types of buyers—especially in our country’s increasingly on-demand, self-service society.
“Many consumers can’t, or simply won’t navigate the mortgage process solely within the limited timeframe of traditional business hours,” Hadiaris said. “They expect technology to service their demands and simplify their lives, whether it’s shopping, dating, arranging an Uber, trading their sneakers, or even a complex infrequent transaction such as a home loan.”
Quicken Loans was the top non-bank lender for 2016, making up 4.9 percent of the market share. With Rocket Mortgage in tow, this growth should—and will likely—continue.
“Rocket Mortgage has become a significant part of our business and will continue to be a central driver of our growth,” Farner said.