RKT - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Rocket Companies Incorporated Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I will now turn the call over to the company.

conference. your begin may You

Jason McGruder

Good afternoon Relations. Companies President Investor XXXX. McGruder, call I'm you for Jason of Thank quarter Rocket the Vice joining covering of third everyone. us earnings for

share are you. the We to results another quarter very of with strong excited

statement. our turn call to XXXX Jay performance is disclaimers. call will our Farner, quarter includes things over I our provide third you I financial in to Today's conference with Before outlook. forward-looking to This read addition information regarding

information that statements, to refer that factors more differ materially to release results For cause actual about may earnings today. from please we forward-looking issued the

risks As titled as in Factors. the with of described well the Risk SEC, particularly in filings documents these section

non-GAAP found that, Our can things our reported will Jay commentary non-GAAP as our as SEC. in financial And today with I'll started. Jay? include for and also metrics results also be GAAP release with the in measures. Farner well us turn issued earnings filings to today, get to our between over Reconciliations

Jay Farner

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learning with also part announced As Google partnership technology. the innovations in new machine of We've and rebranding. AI

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fact well innovation it's of Outside flexibility with solution a All companies of best-in-class our and company leverage Super partnerships proves talent others digital entire lenders real-time, looking mortgage the our In innovations simplify and the known platform. Hall broad of State closed Momoa, ecosystem. Amrock, need taking manually leaders, using Larry leveraging also wide our estate, in and partnered in tedious. Finance. more while eliminating appeal call last the in our to Bowl than insurance months, Fitzgerald we homeowners like September, presence mortgage to closing our to our to is provide Jason company, base. XXX,XXX technology marketing. a an several scalability Nexus, it a to place scale and The receiver technology with insurance a is deliver confirm including the with verifications of of insurance And These deceptively Companies real had the policy continue ad. Title At of to brand to in first Fame in to the a HOI our We that NFL, is Future record helping platform. transactions Mutual star farmers all announced reinforcing consumer confirm join Rocket our platform is marketing to Liberty title best throughout process that Clear to market eliminate and

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implementing is traditionally reviewing records used into engine items of ethical up is documents, This XX% decision the to Amrock tunnel its working machine cutting automates our currently nearly us through on than frees more titled AI time, the productivity. workflow, process more and specialized its files our proprietary tool, This Additionally, learning work Amrock manual being work maps or members team of which and TDE. sale significantly of increasing XX%. down by other on on

and wireless a clients these annual of over model maintain any moment an revenue XX% alone mortgage recurring to total basis. business. consistently lifetime. across talk that will more their seen Mortgage and servicing their points its business our to our payments on to rivals at over but approach and servicing important we and in our processing about levels, client loan subscription-based streaming we like driver including I'd Rocket give monthly and cable, today with originate by of sharing in moment, has been Julie retention never touch detail take we retains a generate our After Finally, industries Retention are clients the services. increasingly

addition announce Directors. Before our Board I Julie. to turn of over I an to wanted to things

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[ph] Independent for League Board. others. Board as Foods, In Education, serves Tyson an He several Major our addition to McGraw-Hill Member baseball and also

Julie ask very you join are have excited to And I'll performance We our of him in quarter. us. to financial this that, Julie? the with share with details

Julie Booth

third another XXX% good quarter Thank $X.X to quarterly quarter, you, Companies the adjusted to $X.X In we work adjusted billion. billion the everyone. income Jay, we net and growth of achieved and results. afternoon growth entire achieved team of revenue the XXX% incredible Rocket of hard Thanks to of year-over-year

record industry and up $XX reported, produced also have We believe on to in Based another mortgage was XXX% XXXX of gain close was September the volume, billion. than in loan quarterly year-over-year. and compared volume publicly generated lenders a closed of We that year year-over-year $XX.X XXX% our earlier. which to months three a quarterly which a represented loan the overall higher substantially we lock ended rate billion, volume what nine banks growth net record

Funded by we $XX.X billion, XX We As year-earlier quarter. XX increase loan revenue lock is days to prior of produced robust to to our lock recognized funded a when billion $XX.X typically we a the with investors interest to the it client. We of reminder, when in growth in network both our consider channel the rate on segments. our loan. compared to a market. Rate partner both approximately loan in an at time volume occurs was our with XXX% by secondary the the XXX% up sold direct-to-consumer closing

Properties. low environment. their changes also a cash driven reduce rate growth we clients wanting these While interest sensitive products. to Demand take from their in less out mortgages, from rate purchase for for and of life to year-over-year quarter benefit strong are homes, the including on the in their we situations continue products demand factors the terms by home the Investment produced

had historically mix origination. balanced of in Although very rate high have has been we a term XXXX, refinancing activity

For example, channel second from the [indiscernible] substantially period half, year less first sale more our The increased from overall third XXXX than volume by on sale products. prior on the the margins sensitive product strong driven are primarily standards. of changes quarter quarter X.XX% through of remained XXXX quarter by mix. in of record was X.XX% X.XX% was the rate Gain in and in and sequential gain from historical change margin

less particularly gain As a the during down quarter, sale represented on volume sale scale, XX record in elevated our primary, in we the reminder, direct-to-consumer period pandemic a margins. the resulted volume the Overall, of of points disruption, In past, network end in second of variance loan and throughout the high of Breaking level or expectations during and in ability sequentially, the pricing our gain the Approximately and remained than the within at point changes rapidly our our of channel margins growth XX typically to strong seen secondary difference margins normalized basis historically change third quarter. market during sale month two. partner particularly basis have on reflecting our related basis and on differences quarter-over-quarter gain XX the May. from exceeded spreads April product quarter. mix, margins a points our

you current business historical operating However our averages. speaks well Rocket environment demand price March, of above sale centralized the technology remained of model, as Managing in gain on advantage important have allows spreads margins the We an strength from the to on basis. heard products Mortgage is our driven dynamically a model to this real-time us since these believe Jay.

of our Today, comparable across client the the is mortgage we differentiator, Rocket off cable also intended of markets our the and our also pay proving from ability is retention is the of servicing new We've business in more service another model, of lender our we X based As wireless recapture many This execution. country, latest rate. introducing portfolio, the ecosystem. market figures including Black times a net sophistication you secondary industry largest retention the are figures our clients metric to and metric superior retention Client average to our Knight. and with than out capabilities, including key to on of be unique called spoken recapture hedging, multiple from because providers. benefit scale capital who Companies about industries,

new a Rocket starting with the on who as Our the calculated percentage based total of client is active base. clients remain metric

the about in lifetime XX% consistently at the company. few retention As drive for press net these levels, has years. value rate over client today's we and advantages past show substantial our release, Retention

rate from the flow retention more hear have increased our cash interest our of the industry net leading fall, throughout result it opportunity generally is allowed the business the from rate of our ecosystem. strength The continued with the lower average, portfolio revenue benefit from client X.X of high retention clients even the the businesses and our metric value reflects Our volume. that when recapture also net to loan because us out lifetime higher to refinance servicing to we rates, times in generate our portfolio. This high is our activity, rate origination is unique

as retention [indiscernible] are in the of which current quarter. Our rate. driving strong we the third environment, In repeat volume XX% activity, our to natural a transaction hedge mortgage represented overall

hundreds thousands expanding future into We are clients also of our creating ecosystem for adding foundation new growth. of and

primarily expenses XX% roles growth. an team compensation driven our Our increased total increase year-over-year higher in variable by QX by in to support production members and

our XXXX. extremely delivering how the year-to-date. and of our billion our After lower We To quarter equivalents strong the growth the we drawn has proud record repaid Turning underlying $X.X to in out the strong profitable plus and quarter reflect transferred in total scale, we long-term just our interest performance billion, issuance cash track cash in cash amount of illustrate, notes notes of to are then $X.XX at senior funding the pre-tax on scale position, substantially rates included improvement senior quarter, sheet. option. company and XXXX. These liquidity been recent figures is record from our compared year billion of due Overall, months as remain billion be billion undrawn of of represented the our XXXX basis. bond Over NSR define and with through $X year income, dramatic can refinanced. an which unsecured pre-tax a with GAAP of cash consistently which that annual just margins profitable generated the end generation mortgages company XXXX, double-digit at GAAP self-funded $X.X facilities our the a of notes produced every balance $X.X liquidity first lines approximately We liquidity earlier. in nine lines, of end. we Having of income as of the credit total a of and

while Our to strategic are market over objective brand leading long we remains and through these that market all to by our XX-XX long-term mortgage industry To profitability objectives, generate the so achieve share continuing the market of XX% run. investing achieve environment. technology, we profitably can grow in

XX X,XXX over leveraged XXth, members loan some production discussed. technology capacity monthly invested further approximately more efficiency, technology the months Jay to the we ended enhancements and enhance and example, For XXXX, increase are $XXX million September than in of team including

in marketing million also We over approximately timeframe. the same invested $XXX

Moving XX% we or loan $XX on currently billion fourth to compared to of between our volume to are billion expect closed $XX.X an and of XXXX. of outlook, in increase XX% [ph] quarter billion the $XX

$XX of XXXX. would sale fourth and $XX.X to expect, the in of gain to which rate quarter an volume XX% the XX% XXXX. be which billion $XX quarter on margins would increase to of in And to X.XX% of XX% of We X.X% net between improvement million, of X.X% lock compared we to expect billion XX% compared an represent fourth

the senior leaderships business. billion Board The $X company's Board the market confidence gives Rocket advantage to a The undervaluing Companies authorization we and us of believe Directors Lastly, in of flexibility if our take the long-term today. program prospects. is repurchase reflects share program opportunities the approved effective

the long-term it substantial create are questions. for our committed to to our to value for We we With are operator generation shareholders. back to using ready turn that, cash

Operator

Faucette from first [Operator open. the line from Morgan James question Stanley, Instructions] is Your of your line comes

James Faucette

metric kind a you and helping I'm understand just And Jay, in through Thank how of highlighted. in advantage other terms minute much. than retention and Julie. wondering can Good that's two afternoon, retention afternoon past, your at how of what can we value you take the that maybe us ways used the start the very you spend or that customers? mind look lifetime particular, if metrics look increase of Jay. could the did maybe, the net that if you Good you different new at that you've how look those goes you different with of that XX% to in

Jay Farner

now know thanks lot process LNG a IPO times I we north references during average. about X.X the industry about the capabilities, for question. recapture talked in and our are particular this the Bob Yes, of Walters [ph] which

going were is the which good our are someone's just off if because you the we very to generates And is we for reasons one it it is when very retention rate. So to rate that that great revenue high. can, have recapturing portfolio, rate be us. of we client, And touched on on recapture retention paying this high able

Of we value client to of unique in a and course But rises, out at something ultimately lifetime our personal such refinance, for to I rate the of help longer with and think the as the rates. very about of on help lot products retention when lifetimes actually type other for us, some today or first business, us opportunity is these when but businesses from this you you're loans, were purchase, think even interest more more you because looking them auto to if different with more of profitable increased opportunity them probably --, saw as opportunity that retention client profitable. other the transaction a benefit

And ecosystem which think us really and refinance like to the that win still supports so really and that to of is our broader we're collecting natural we ecosystem payments allows keeping offer so is rate or mortgage, are together, us it. products be retention for falling. will that to services, like, because to falling generate might rate of And recapture incredible. allows 'XXs, their how a the to clients and and the benefiting drop having other revenue those those are we in retention as market if a to them, the client see significant as rates rate rising the I bit, rate the interest a also the it rates that still here today on in building, rate low in We're to -- servicer rates but monthly work think I ability interest hedge, whether that referenced are also about recapture Julie services additional touched but before, that's able on

James Faucette

That's that you ecosystem into key really helpful. when then of their I and build And they beginning can and at one we buying people of the and homes. are look kind to that their you the things guess that first Rocket on can it working as is how get of do professional quickly careers the

lifetime retention I comments we bit initial little think are seeing value, to contribute a success particularly trajectory you the a maybe most if can you're should about think that you're purchase on you about made to you how the success. and seeing where can rates? there. high But some volume how some And Thanks able that talk that maintain lot.

Jay Farner

Yes. question. the And again thanks for

As I for purchase in side. the on on the there, here, us and stronger call digital and we're than for is significant demand in the particular experience the comments referenced the seeing growth ever

into QX really on So thinking I be to about talking one and were home, verifiable these our looking purchase we're are accelerated centers think touched about more driven who've quarters the desire millennials, talking other strongest about as been urban than clients in our for history. COVID purchase issued we of QX is any home a fact, home approval I letters company's their owners was in moving quarter and folks places and from buying declines suburban strongest in

life that I'd client that to that excited so cycle. business a that way Auto we the on one we Rocket to about like may loan or also demographic, tends you early about or Auto skew to then initial if think the purchase that's be. isn't younger Mortgage and in So home And their engage because are

that to to on, our base, will of come. that XX working start client we're us And XX, so the in initiatives all relationship ecosystem retain those XX, with building years for that allow younger then

James Faucette

Great, thanks.

Operator

comes next the Timothy question Credit Chiodo Suisse. Your line of from from

line open. is Your

Timothy Chiodo

the you lot. to be for that question. build that a It's might those up is in investor and can lots discussions. behind lines you up. light, comes the Thank advantages of The interface, question advantages clearly local systems around, are bring be you work at the years some of some like the have tougher Thanks of bring to topic that taking sort really up by or scenes appreciated? investment it's around Wanted often be anything consumer technology the the for taken along municipal actually to anything that that may you see user of -- into much these some looking with would to

Jay Farner

to our XX and nearly Julie the referenced million it for months, thanks when now question. as think last I Yes, we've that been technologist X,XXX we comes believe this the the we've about the investments building. that made platform $XXX in here

$XX the of that give the best can growth the months think think first 'XX, year-over-year. nine I example I at billion that If we is closed. look you I

more a at period in base, huge the Now, of billion lender largest we the billion in $XX platform doubling country and now demonstrates that same the is XXXX. the and those investments than technology board. power that the across $XXX look nine-month in we've in that made

also loan that important the into the to us in because calls, about that's real the those drive real them, one, the rollouts next of of to course I'll Pro very it's is time making of agents important more for to time frees on to draw allows it closes, will Rocket feel your efficient their more our Insight clients it control, focus talked we up but mortgage, status they that's also loan on updates our platform now and the business So taking attention recession estate recent some versus team platform. referral giving members

have is experience Julie at mid-experience us Another to we their in leverage now been mid-users, only takes know that of referenced but leave to realtor.com integrated a across I been to for we're millions homebuyers. able takes be tens Mortgage that. we've hand-in-hand been launched to into don't not and we to the one prospective clients with that the built, additional into have the period we from growth APIs one partners do Rocket it it's where our believe that to team another long now referenced partnerships. good I does partnership for technology fully mid-partnership were that we've that they app can that again and reaching a for working experience of that investment time, And allow strong provide us the that but is tech of

On the portion of process less A machine is around verifications underwriting our other assets, of been learning decisions verification done a as about systems. of side are of verifications maybe automated evident. now using we a employment, leveraging that internal things has talked insurance our ethical AI lot significant

that they which think platform, each day, it decisions we I fact, In our referenced scalable. are all not million are is there to efficiency automated makes bringing over great X so what

Timothy Chiodo

relative was purchase have obviously, potential State in that to large a of other it of remarks so does which then expand terms you're market, your That's ahead I brand Thank extremely follow-up, know you partnership you just like there prepared as could well, realtor.com, helpful. seem one towards and some Farm? quick name the but mentioned step on I on And tilt me and in a you actually, much. you of partners wondering the the if to mentioned your

Jay Farner

platform product, be their of another -- represents us yet into experience. partnership real our integrating The example

of can we the but we like X estate that values and equity so of connections to, that that sky's integration have restage have have about and home our the process, plus when connections the a in started the we information limit markets, that think the data that the book. think they about in information you look And real folks servicing what million

And so what that create home closing seamless we're purchasing from very think about the the really moment trying you home. is there a until to process

and we've best-in-class closing is altogether for a real to and way create are that wrap This eClosing approval, the us the in that for Title for business, clients. And so very unique realtor.com Nexus a the experience clients mortgage great we Amrock and reagent built. just our platforms

Operator

Your from from next question Goldman line the Sachs. Ryan comes of Nash

open. is line Your

Ryan Nash

Good evening, guys.

it that maybe upon. a of Jay, things bring you touched together So handful

big take in date, And maybe I part running, to you're year the to with guess where the I on ability narrative I the quarter. based closer you're X.X% share. think think the X% a of to market about

you I any individual manage Although, don't to quarter. one know

can and So talk obviously the as about are for second, we're market these a increase. you And them bit volumes of with continue expectations the I moving think up to that to seeing at backdrop, maybe rates levels? just sustainability

in share channel. as you you just and maybe just purchase as you you offset a big market? oriented heavily can drive market talked the market about be So broker of more an serve talk that into little to in more out about Is help talk will Can part a how party leaning expect that about, bit as volume the a originations. cash smaller-refi can a to Thanks. maybe

Jay Farner

that at divorce for volume Ryan. the between and great question Julie and is refinance like sensitive. for cash life breakdown X.X you of changes plus or XX% reason of look changes more term not the when rate in our of the purchase the interest than a out production and loan kind really years Yes, over a touched on last

to that component, that we and when save look demonstrated continue for environment believe refinance. money that's will at the years, a substantial I of the critical we're amount to sense folks So this and there also, here in XX% still of out it in happen we situation, we're could that clients a makes a

well the for purchase continued good great home the that a of moving is things in on ownership all the ownership focused its vaccine welcome very pre-crisis the Millennials on areas. strength on So very the kind that will more we feel home for in homeownership. urban side believe this don't to are news work or those was course But as not now vaccine before be levels. And home all for from home only the refinance work-from-home, family leveraging It been may we set very I has alter back referenced things on way. about bode side, but and demand, of

QX five And a little I'll day bit has before know, marketing the And in what you're if bit that actionable which pressure election, the more continue. I which of little saw October a a will for back for spend so Thanksgiving, we challenging before you to as you four, fewer fact be of the for us we really more as out guidance call imagine the Julie looking QX, business can what for makes from a perspective. day day Christmas course gave due challenging. that And marketing Eve, at, bit think

on, into market is looked we're and you to rate. to into share ability it's leveraging whether are market similar of accomplished meant direct-to-consumer at It what And for in our leading us in at Schwab, others that what back go-to-partners production our our pulling it's as the to forecasting changes site, advertising. really our grow very, because interest touched you out or this back when along If realtor.com where reach with QX. very partners QX., in positions we

Ryan Nash

left want And here. it. one out to maybe Got Julie. don't for feel I

So what the these you of can by operate driven spreads and across to versus competition just that they Julie, can fourth next that quarter, as out based on And quarter for being guidance. will think how, we came mix talk any long above look the could in channel how how is spreads? on elevated seeing the you you expectations maybe you're few just quarters, that you're what just given the into with sense over today, the continue much you sale gain about maybe compression about talk well drive seeing trended

Julie Booth

for elevated by in Thanks our and And QX, expectations margins on standards. gain historical question. the remained sure. our Yes, sale exceeded

longer expected. have remained margins for elevated our than So

mentioned variance basis resulted pricing, during changes from and network this at and net were XX the from than the of you to drivers less that loan points If of our their strong QX that of XX growth QX, partner product biggest look represented QX. points variance saw we channel I mix basis changing about this

or head demand amount we that take elevated, continuing XX% by think they're historical to stay we with and of repairs as volume, the see refinance continue to still able you folks that standards, to that next through, ready of is into X there demand, that's going take going that X something years be trillion of there into will to to if out couple into the which years. and we upcoming are So the margins that to strong are QX that we're to going refinanced, continue elevate work to believe years,

and about we on margins feel where our into good so the gain really fourth quarter. here volumes heading And sale

Operator

question of JP the from Shane comes from line Morgan. next Rich Your

line Your open. is

Rich Shane

business taking and one related. related. then sort everybody One for questions. And my afternoon thanks stock of Good

or not As implementation GSE whether place. that into markets look And absorb repriced impacting to originators on sale? think forward adverse to start the think will you we fees you curious of this. some the primary will or were coming whether or not market I'm of the adversely

Bob Walters

Bob for pricing absorbed question. run the and is thanks and month got a changes made before at you've Walters we the that most ago. This that has been test so a Largely of or it

this largely fully in bit margins. the point priced So been absorbed at fairly into are

Rich Shane

Great.

that A D $X buyback. eligible how works repurchase am billion you. and situation combination well? I many shares with thank curious you when for shares then potential or Okay, a announced the have of And B as guys

Jay Farner

question. want a feel it Julie, you want different push a probably you that's that to to or time. to Yes,

Julie Booth

D eligible can Class just a have A the are that not generally shares Yes. be I announced. know repurchase we would program answer repurchase this share for

Operator

Zelman of question Ryan next Your comes & Associates. from from McKeveny the line

open. Your line is

Ryan McKeveny

results and and guidance. congratulations you thank Hey, the on

margins. a first So about gain XQ your step question commentary taking sale be of on further. Julie, some may on

and one volumes there where at to up of gain into to out industry much back margins, do XXXX especially if really and is I compression about that the fade. debates sale begin on how the begin XXXX, is environment thinking sort think on outlook of be there could theoretically, rates such some point

periods not or looking I'm effectively what pretty are could after margins. you year, for you specific massive color that gain can today, maybe volumes are you year, all somewhat the where share some So and sale puts provide have historically takes? the you've your why, color pricing puts sale margins but around might to guidance on next hoping with and on differentiation on for what be to what the factors in those but, elaborate about that and you seen happens a dynamic gain should takes think on is and but maybe did XXXX that on recapture definitely for I that analogous primary just the appreciate we those, what the

Julie Booth

network at of points. if have and margins XXX between basis probably then things, between kind our points normalized, basis partner direct-to-consumer we more see look back time. Yes, over you'll XXX look on points on look side gain sale sure. If maybe back, can how we and basis you basis of XXX And the margins, XXX points --

now think sort on I will I out there as last, impact we be long but is mentioned into just is demand probably of there like still the that a So lot of this we're year, a know it's to said, to to have nice that the how seen seen, will levels years. to in quite you I upcoming upcoming that the have relative continue demand those seeing margins upward historical

Ryan McKeveny

helpful. market beyond channel, you was hoping benefits last overall so pricing I in advantages changes margin the speed but about sale TPO differentiation and to in partnership the about Rocket market that. influence And just new about you address Pro maybe kind segment bringing hear execution think the The along from that exciting Got And the margin? kind influences lines, partner quarter, and some week, the of, of above struck it that much. gain the terms on of platform your how very that it. does how the that in on curious you you you That's others that mortgage mortgage how those of Thank on into partners? how on and name positioning segment think your could this positioning you wholesale we

Jay Farner

think And maybe now which direct-to-consumer, talking that is they today talking only the unique leverage our channel table, important, you're the rebranded also is brokers, and with and it. but unique partnership referenced we'll uniqueness Well, we I certainly as partnerships they branded I incredibly that bring traditional in State so the we growing highly both about brand. margin XXXX. to to we industry Farm And say, large allowing Rocket that. the about Pro brand think be beneficial. technology, not our brokers third-party regarded They the into TPO, network about get that another as partner and our between more to giving accomplished your in third-party the are reflect we've that into Charles leverage we've But is the about these as we thing our that's that Schwab, and process would be that is which are

apart able we to we offer for think our that and the also achieve them able rolled so about and we do out to that. said we'll partners best purchase as that to us is XX,XXX be new our were Pro whatever want something clients, help I referenced to Rocket to I sets they continue leads GPO platform here

loan in has one, their for well. a those now, and And the so to client lead them their allowing brand have allow flow the And to JD grow brokers businesses of to XX received the as great people process that know trust Power advantage leverage technology, Award origination. that using role and access the

about space. we're can do on in continue all that that those to the things differentiate space, think we that when we of also grow really players and ourselves to from So of focusing kind traditional

Operator

question next the from from of Matt Roswell RBC. Your comes line

open. line is Your

Matt Roswell

taking EBITDA? question. if quarter. about any be my sort should about I who fourth Yes, of expense for we thank aware side could think seasonality, we the adjusted kind And going into very there you we as think anything wondering the of much of was or is

Julie Booth

Yes.

that that QX will While we with is half in we looking certainly, every as quarter quarter, we're the I into think don't we fourth going production, noted particular there on expenses in guidance at think nothing I've variable vary but give year. is the expenses our see

at. we look nothing to on, So really special comment as

Matt Roswell

question. a And Okay. bigger picture then

into space efforts the of in into much the and personal? you're going you focused sort for probably the mortgage non-mortgage auto loans really However, busy going that that so going not

Jay Farner

but the that. also platform, of only the is focused to of brand, leadership. on the We're technology, one not base key very our this the And strengths client

will not Rocket well. going And know has growth. been businesses businesses, at so Rocket looking our substantial estate, think about those ability when to Loans leverage is guidance that our very leadership area those but see Auto providing Homes, XXXX, on I we now right we're Rocket and real we're across

Operator

question next Your from of Citi. Arren from line Instructions] comes the [Operator Cyganovich

open. is line Your

Arren Cyganovich

over a I Thanks. you Maybe progressing your production get expect touched the mortgage would expansion thoughts are on little next guess to you the in how your just and plans bit and that's into of couple what of Canada proportion of terms years?

Jay Farner

I a excited here the the with partner in company of doing we Yes, an called we're we very about last Canada. in we're acquisition released know to that that week made work or Lendesk. Finmo two

I've a the critical, And the so direct the Canada. was so best acquisition lender a access the between response tech Finmo brokerage in and from seen mortgage focus that developing process community deeper of and that really both allows really lot the to broker today in positive is brokers our And Canada.

to Lendesk just are table. is going we areas Finmo. we're the technology. that right no as that to bringing one and so I develop planned experience an the for continue things and and out It's disruption between else And believe

Arren Cyganovich

capital? too episodic that more your or of see on back much stock bit a Thanks. This And repurchased the kind to on something intend the share on is authorization. whenever you or in then you regular basis is this a use excess opportunities

Jay Farner

Yes.

and talked just is dollars manner allocation grow very how we've than sure spending us, marketing our there's and on, activities. organization leverage, we've in on is that our spending brand So Julie and it's and ensure of that to been from that organization think that going shares strong And undervalued there so. I platform to We got a handle that there privately our to whether the and back our a to was business shareholders the Board is able time course thoughtful public grow feeling our do think that then, making investing way then about on help be track we're record well made, going to of think always to broader have priority return to to is opportunistic, our time special goes a to in it, about as capital capitalized M&A allocating I as an that we're dollars that the we're sheet, touched those business continue never business, we're we've and as value dividend a different pretty considering buy if remember always we and shares of repurchase clearly back think held us important I finally, strategic capital will concept first so an move better a technology here got the we about. a did always balance dollars is for for been a investing another of are XX-year opportunity this to but the to we're back into disciplined strong

Operator

comes question next from from Barclays. Your all of Mark DeVries

Your line is open.

Mark DeVries

can Is blocks by us refi there down Thank the of you. you you're channels? today also percentage and kind provide any broken your color of purchase getting from versus on two

Julie Booth

but that and in kind something XXXX that Yes, on. our demand that what we're is focused for not past, we disclosed seeing we're of still mix looks the we purchase disclosed our like, where it very think, that here is something very SX in something that it I and have strong

channel. in right between now the So we're mix closing just now just not the

Mark DeVries

Okay.

business can high And similar you what think there? ultimately are you capturing maybe and generating Title do that, third-party your question, response from business of that Second go? percentage you originations are how

Jay Farner

quarter our think before I well. it's don't we had, a but referenced Amrock as I as the percentages, disclose Yes, record

significant we Title give third-party have Amrock of that is a also robust percentages. But Rocket they that based so, here not -- by Mortgage amounts. the we a business portion is on to leverage -- Title specific And don't we do and

Operator

question Micenko the next from Jack of comes line Your from SIG.

is open. line Your

Jack Micenko

point? revisit dividend, of dividend. a wanted trading. buyback the between the versus trying currently buyback maybe shares pretty a to are in-flow process half buybacks, special thought the the Hey, special maybe the to What that At this or was

Jay Farner

the us. better place to a will stock price be think that reduced our I those we for the what's dropped we to opportunity is shares see buy the capital think that best back. just, advantageous, If really

Jack Micenko

was Okay. quarter, as timing I'm anything, really maybe know and the just And you it there, in the marketing was of you spring effort versus kind the of spend or spend revenue revenue this consistent more with was there there marketing as the the or grew, and the mismatch to percent then, deploy a a of guys looking selling, are revenue just at available I it about marketing conscious are a you pretty spend, while this you? you spend to making think elevated 'XX it's into your

Jay Farner

talked long marketing that of first can we that period that will it for we've profitable, is the we've about revenue value as multiples spend client we been lifetime transaction. a if generate is the be of the especially the because dollars, more time, than that transaction, is spent that first Well, a there on profit in initial

into in costs this was going election media wasn't increased much the the hard as to that went you are watching the radios related we course, that the with election. as of and was add and an also, quarter television, listen it of see to line sure We and I'm

a for of as So that bit brought cost us well.

Operator

of Your from next Bose from question KBW. line comes the George

Your line is open.

Bose George

purchase the if transaction Hey, are retention rates does the that on metrics? was I wondering and borrowers into off give good make you just recapture work loans who to a paying afternoon, can

Jay Farner

But verified even number about Homes our a approval. Rocket can will Rocket they share as equity to call that. the plays you No, I the they think give in the or afford, home providing don't I ecosystem clients, we mortgage with we the think in for and what we ready specific broader that critical them getting their have role homes

someone be a looking to in whose that well. approval we're behavior, gives homes portfolio us as [indiscernible] our verified up them able And heads so work from that with to purchase trigger client then perspective servicing at to ensure bringing demonstrating in there that a back or

why ecosystem so to And us. important is this that's robust so

Bose George

G&A I of. is that ask terms in with the, earnings of about that and to actually then, the much wanted potential? And kind to buyouts. size, thanks. a Great, Is contributing Okay.

Julie Booth

Yes.

that do of going we're there some borrowed evaluate and line have the our $XXX We can Ginnie continuing on is that right to in have balance amount that you you million that but credit kind sheet, see sheet Mae on is what we it about balance now far. see an done for of opportunity is our we're buyouts, to our so

Operator

line Wells from question next Don from the comes Your of Fandetti Fargo.

Your line open. is

Don Fandetti

with don't share, just Hi, know a I'm thought curious, the some evening. large there's lot curious you also that was I'm to dynamic, then competitive you're just market non-banks activities what the good if you the competition if and banks? I seeing also of if Just been I from staff. take want of will wondering change

Jay Farner

real we see folks participate the Well, other about do thinking mortgage public. estate space, going who and in

estate watching that client X think we've And nearly mortgage with a today, Also close different than think we're be a buying a seeing, others the this according our and that's brand $X uniquely in the now in with million grow that here comes Obviously fintech that on a a folks great high space invest think JD in situation. Power our the base grow, car, me book of it the but we become service about home we of positioned. talked household that to about to recapture about from and whether a doing few here, we're how X.X when platform they may think helping spending feel most technology others, that's that we've clients times be Black of it's we mortgages. the rate platform $XXX buying now let million rate, reference we're similar this or of it's industry as growth have to the we've about in Rocket us quality us the may providing, focus the the think separates some think a some to exciting Companies their other able their quite separate home or then or billion this think I experience we're in bit XX% with thinking life, dollars a name we when experience, servicing the we awards retention that course on real in times, from we Knight consumers lot to refinancing marketing. north

Don Fandetti

you. Thank

Operator

of question comes Coffey line final from Henry Wedbush. Your from the

Your is line open.

Henry Coffey

more year. building terms for you that about evening a and Maybe bit next objectives Yes, capacity about you good that retail thank falls -- talked the money between your last and purchase How in for origination? depending little I my that you on your affecting on the direct call, and taking the mix of question. talk could the your where channel refi partner know and out? independent you the between brokers market network do see

Jay Farner

well. is the While progress going very

the that target close of in look were the at we our allow able us achieve QX and to technology to been to that As market. QX, volume goal projections you for our XX% has normalized a mortgage

so take, month. or XX or billion at give would trillion, a be billion $X $X [ph] which a just about years $XXX that's So

performing operations perspective, the about the we large partnership, the platform that talked rollout about technology We've is we'll we about brand a brokers we technology. partnership perspective, lot a incredibly about more from talked another so from and think an the When with of Rocket in realtor.com talk that And detail touched TPO well. on this in announcing be future we've XXXX. very Pro giving that

grow lean will to condition. share these us to regardless into continue things of rate the interest marketing, All allow

share that we to on the XX% goal to achieve long-term XXXX. all building the market by continue just path company so right strategies of And our of long-term allow

Henry Coffey

follow for my that a that, Auto other We a question. playing say other of lending. what and areas, I'll how whole much that related, saw with question is talked but and you the really not kind taking so about Just about direct you've second thank is

Jay Farner

before, as guidance, month. from millions do mortgage touched providing now different out a channels Rocket visitors in not the state which Well, I on real the I I estate Homes like that platform building can but of much our

Auto and the are we even more the by excited growth here about platform, growth Our QX, platform, going that of for future. Rocket and in experience the in we as very we've those about seen all excited do things owner planned sale believe the are

Julie Booth

quick just one have I sorry... -- one. I'm

Jay Farner

Go Julie. ahead,

Bob Walters

clarify… to Want

Julie Booth

clarify sure the D shares. question looking here, The only did make regarding earlier plan, wanted question I the or regarding thing sure repurchase was that I to the D share

share want clarify So and repurchase I both since to applies just plan A the to D shares.

Jay Farner

you, you. Julie. Thank Thank

Jason McGruder

We Well, questions, great. that's taking but appreciate everyone much time. wrap up to I joining the so think today. going thank the for you And

Operator

joining. Thank everybody concludes today's for you conference call. That

may You now disconnect.

Rocket Companies (RKT) 10 Nov 202020 Q3 Earnings call transcript