It helps that Quicken can sell its mortgages through Fannie and Freddie, and so does not need a huge balance-sheet to finance them. As a result, the mortgage business is absurdly fragmented. So although mortgages may seem much the same to borrowers across the country, the firms that offer them have long assumed that they need a local presence to conform with the tangle of rules. Then there are overlapping federal rules, especially regarding mortgages to be securitised and sold through Fannie Mae and Freddie Mac, two government-backed entities. Local bylaws in many cities and counties also affect property purchases. Despite (or perhaps because of) breaking all these conventions, it is the fastest-growing firm in the industry: its new lending has risen from $12 billion in 2008 to $79 billion last year.Īmerica’s 50 states all have slightly different laws regarding mortgages. Nor does it take deposits, relying on wholesale funding to finance its lending. It does not have any branches, interacting with its customers online and by telephone instead. But the second-biggest mortgage firm, Quicken Loans, does business completely differently. The third- (Bank of America) and fourth-biggest (JPMorgan Chase) providers follow a similar model. became a publicly traded company last year.WELLS FARGO, America’s biggest provider of retail mortgages, drums up custom, and cheap funds to lend, through its 6,246 branches. The company moved its headquarters to downtown Detroit in 2010. “Since then, we developed proprietary technology to improve every piece of the process, but we officially revolutionized the mortgage industry when we launched Rocket Mortgage in 2015.” “More than 20 years ago, Dan Gilbert, our founder and chairman, had a vision of putting the entire mortgage process online to simplify the lending experience and add more transparency,” says Farner. It was the first home lender to launch a mobile application in 2011.įour years later, the company launched a fully online mortgage experience - completely digital from application to closing - in late 2015. A 2016 Super Bowl ad announced this new, online option for getting a mortgage. The company implemented the ability for clients to e-sign mortgage documents in 2002, then became the largest online retail mortgage lender in 2004.
The company was the largest lender in the country in the fourth quarter of 2017. Quicken Loans ran with new technological advancements, allowing it in turn to grow its popularity over time. Over the next few years, the company closed all its brick-and-mortar branches and embraced the centralized model of an online-only lender. In 1999, the company was the first of its competitors to connect with clients directly online when it launched. Gilbert founded the company in 1985 as Rock Financial, a regional branch-based mortgage broker in metro Detroit. The most noticeable change, according to the company, is expected to be the move in letterhead and logos from Quicken Loans to Rocket Mortgage branding. The company says customers are not expected to see any difference to the digital experience they currently receive. Rocket Homes, Rocket Autos, and Rocket Loans are among portfolio companies that have already taken on the branding. “With this official name change, we will have a consistent brand that is synonymous with innovation and excellence.” “Rocket Mortgage has grown to be the industry leader and the measuring stick for all other lenders,” says Jay Farner, CEO of Quicken Loans. Company leaders are hopeful the change makes Quicken Loans more synonymous with the Rocket brand’s focus on fast and technology-focused service. The change comes as the Rocket Cos., owned by Detroit entrepreneur Dan Gilbert, looks to align its portfolio of companies under the Rocket brand. portfolio, will officially change its name to Rocket Mortgage on July 31, the company announced today. Quicken Loans, a linchpin of the Detroit-based Rock Cos. Quicken Loans, which is headquartered at One Campus Martius in Detroit (pictured) plans to change its name to Rocket Mortgage on July 31.
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