The Hohmann transfer is described as “an orbital manoeuvre that transfers a satellite or spacecraft from one circular orbit to another" and is named after the German scientist who hit upon the strategy in 1925. For this they rely on a special type of orbit, called the Hohmann Transfer orbit. Gain-on-sale margins are projected to come in between 265 and 295 bps.So, what scientists aim for when launching a spacecraft is to find a low energy mode to reach it to the destination.
Rocket said it expects to close between $75 billion and $80 billion in mortgages in the fourth quarter.
In October, Rocket Pro TPO announced numerous initiatives to continue improving and growing its broker channel, including connecting broker partners with real estate agents through Rocket Homes, the company’s real estate listing platform.Īdditionally, the lender promised to “protect” newly built relationships between mortgage brokers and real estate agents. I look at that as an opportunity as it becomes more challenging for more mono-line mortgage businesses to do that, as an opportunity for us to continue to invest, increase wallet share and set us up for an even more profitable business.” He added, “We are uniquely positioned to continue to invest into the TPO business because of how well diversified our entire business is. “In addition, overall market share is up 2-3%, as our growth in that market continues.” “We are excited about how our partners are committing to working with Rocket,” said Farner. Rocket said that it “grew its partner wallet share from 36% in March to more than 50%” during the third quarter. Rocket Pro TPO, the wholesale division of Rocket Mortgage, saw nearly 3,000 new brokers join the platform in the third quarter. “We have been consistently growing market share, regardless of the size of the pie.” “We are projecting to go north of 10% market share,” Farner said. “Our core mortgage business exceeded the high end of guidance for closed loan volume and gain-on-sale margin, while achieving record purchase volume.”įarner also noted that Rocket expects to hit double-digits in terms of overall market share in 2022, one that will be “purchase-heavy.” The company heavily stressed that it is concentrating its efforts to market cash-out refis and purchase mortgages. “We had an excellent third quarter, as we executed on our mission to remove friction from life’s complex moments,” said Jay Farner, vice chairman and CEO of Rocket Companies. Rocket disclosed that its retention rate was 91% year over year, which it bragged was “unmatched” in the mortgage industry. This growth was “driven by focus on a superior, technology-driven client experience, product innovation and our integrated, end-to-end home buying ecosystem,” the top-ranked multi-channel lender said. “In fact, both our direct consumer and partner networks generated all time highs for purchase volumes,” she added. The margin boost came in part due the removal of the controversial adverse market fee by the Federal Housing Finance Agency in July, Julie Booth, chief financial officer of Rocket Companies, said during the company’s third quarter conference call.īooth noted that the third quarter “marked a new company record” with purchase closed loan volume growing 70% year over year. Rocket’s gain on sale margin rose by 27 basis points to 305 bps, a significant leap from 278 bps in the second quarter. Rocket Companies, the parent of Rocket Mortgage, generated a whopping $1.4 billion in net income in the third quarter, up from $1 billion the previous quarter.Īccording to the company’s earnings released on Thursday, Rocket originated $88 billion in mortgages, with a net-rate lock close to $87 billion in the third quarter.