For some consumers, meeting with a mortgage lender face-to-face provides a certain peace of mind. However, the prevalence of online mortgage firms such as Rocket Mortgage, the nation’s biggest home loan provider, indicates that many people feel completely at ease applying for a loan without having to visit an office.
Quicken Loans, a division of the publicly traded Rocket Companies (RKT), officially changed its name to Rocket Mortgage in May 2021.
Is Quicken Loans privately owned? This question has been swirling around the internet, leaving many confused about the ownership structure of this prominent mortgage lender. Well, buckle up, because the answer is a bit more nuanced than a simple yes or no.
The Short Answer:
Technically, Quicken Loans is not privately owned. It’s a subsidiary of a publicly traded company called Rocket Companies (RKT), which means its shares are traded on the New York Stock Exchange. However, the majority shareholder of Rocket Companies is none other than Dan Gilbert, the founder of Quicken Loans, who holds a whopping 93.2% ownership stake.
The Long Answer:
To understand the ownership structure of Quicken Loans, we need to delve into its history. Back in 1985, Dan Gilbert and his partners founded Rock Financial, which later became Quicken Loans. In 1999, Intuit, the company behind QuickBooks and TurboTax, acquired Quicken Loans. However, just a couple of years later, in 2002, Gilbert led a group of investors to buy back Quicken Loans from Intuit.
Fast forward to 2020 and Quicken Loans underwent a major transformation. The company rebranded itself as Rocket Mortgage and became the flagship subsidiary of a newly formed publicly traded holding company called Rocket Companies. This move allowed Rocket Companies to raise capital through an initial public offering (IPO) while still maintaining control over Quicken Loans.
So, is Quicken Loans truly private?
While Quicken Loans is not directly owned by a single individual or a small group of investors it’s fair to say that it operates with a significant degree of autonomy due to Dan Gilbert’s majority ownership in Rocket Companies. This structure allows Quicken Loans to maintain its brand identity and decision-making power while benefiting from the financial resources and public market exposure of being part of a larger publicly traded entity.
Here’s a quick breakdown of the ownership structure:
- Rocket Companies (RKT): Publicly traded company with Dan Gilbert holding a 93.2% ownership stake.
- Quicken Loans: Subsidiary of Rocket Companies, operating with a high degree of autonomy.
Additional Resources:
- Rocket Companies Investor Relations: https://investors.rocketcompanies.com/
- Quicken Loans Website: https://www.quickenloans.com/
- Investopedia Article on Quicken Loans: https://www.investopedia.com/articles/personal-finance/010815/how-quicken-loans-mortgages-work.asp
- Wikipedia Article on Rocket Mortgage: https://en.m.wikipedia.org/wiki/Rocket_Mortgage
Key Takeaways:
- Quicken Loans is not directly privately owned.
- It’s a subsidiary of Rocket Companies, a publicly traded company.
- Dan Gilbert, the founder of Quicken Loans, holds a 93.2% ownership stake in Rocket Companies.
- This structure allows Quicken Loans to operate with a high degree of autonomy while still benefiting from the resources and exposure of a public company.
How Does Rocket Mortgage Compare to Traditional Loans?
Borrowers who would rather obtain a loan conveniently from their home or even from their neighborhood coffee shop are the target market for Rocket Mortgage. But in reality, the procedures for obtaining a loan and closing on one are very similar to those at your local bank. With Rocket Mortgage, you have the option to apply for a loan completely online. If a candidate would rather not apply online, they can also work with a Rocket Mortgage Home Loan Expert. Next, Rocket Mortgage determines the loan options and rates for which you qualify based on your employment status and financial information.
The lender must check your credit score, confirm the accuracy of your job and income details, and ensure you have enough homeowners insurance before closing the loan. It also has to order a home appraisal from a third party.
Because of the expense of these procedures, Rocket Mortgage demands that borrowers provide a $400 to $750 “good faith deposit.” The good news is that you might not ultimately pay more for these fees than you would with other lenders because the company deducts the deposit from your other closing costs.
The Rocket brand is known for streamlining the borrowing process, and closing on a mortgage is no different. Customers can select when they want to close and where just by logging into their account. According to the company, it services 99 percent of the loans that it originates, so you are most likely going to make your mortgage payments to Rocket Mortgage after you have finished buying your home.
Customers who prefer to handle their own affairs are likely to choose Rocket Mortgage, an entirely digital platform that the business unveiled in 2015. You will be prompted to enter information about your finances and the kind and amount of the loan you’re trying to get when you log on to the Rocket Mortgage website or app. Many customers no longer need to search for and send over pay stubs and bank statements because the company can retrieve them straight from their financial institutions.
In addition to calling, you can use the platform to ask questions about your loan and find out if you’re approved. After the loan closes, you can also access the Rocket Mortgage website or app to manage your account and update payment details.
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Pros and Cons of Rocket Mortgage
Unlike online marketplaces like LendingTree and Credible, consumers who use Rocket Mortgage are only dealing with one lender. That has its pros and cons.
In the plus column, you won’t receive a barrage of emails from lenders trying to get your business. And your personal information gets into fewer hands, a big draw for privacy-minded customers.
However, if you don’t have multiple bids coming in, it can be difficult to determine whether you’re getting the best deal. Furthermore, you may receive additional documentation and inquiries to your credit report if you approach multiple direct lenders in order to comparison shop.
One advantage that Rocket Mortgage provides is choice. The company, whose history dates back to 1985, provides conventional mortgages as well as specialized products like U. S. Department of Veterans Affairs (VA) and Federal Housing Administration (FHA) loans.
Rocket Mortgage positions itself as a more practical option to traditional lenders, and it plays a significant role in that. Using your mobile device, the digital service enables you to view information about the closing, check the status of your loan, and communicate with a team member.
It is a well-established fact that most industry sources say that homeowners who work with a banker in another region of the country do not have to give up service. ” J. D. In 2020, Power, a company that rates mortgage originators according to client satisfaction, placed Rocket Mortgage at the top for the eleventh year in a row. It slipped slightly to the No. 2 spot in 2021. The company also receives 4. 5 stars out of 5 on real estate site Zillow.
Quicken Loans Mortgage Review: Should You Consider It?
FAQ
Is Rocket Mortgage public or private?
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Formerly
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Rock Financial (1985–1999) Quicken Loans, LLC (1999–2021)
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Company type
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Public company
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Traded as
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NYSE: RKT (Class A) Russell 1000 component
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Industry
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Financial technology Mortgage loans
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Founded
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1985 (as Rock Financial)
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Is Quicken Loans an actual lender?
What kind of company is Quicken Loans?
What bank is behind Rocket Mortgage?
Is Quicken Loans still a bank?
Yes, Quicken Loans officially changed its name to Rocket Mortgage in 2021. The Quicken Loans website is still functional; however, it redirects inquiries to the Rocket Mortgage platform. Is Rocket Mortgage a bank?
Does Quicken Loans have a website?
Although customers can still apply for a loan through the Quicken Loans site, their request will be managed by Rocket Mortgage. While Quicken Loans officially became Rocket Mortgage in 2021, the QuickenLoans.com website still exists.
Does Quicken Loans own Rocket Mortgage?
In May 2021, Quicken Loans announced that it was formally changing its name to Rocket Mortgage, a subsidiary of the publicly traded Rocket Companies ( RKT ). Rocket Mortgage is an online direct-lending platform for residential mortgages and home loan products.
Is Quicken Loans a good mortgage lender?
Quicken Loans, or Rocket Mortgage, is a trustworthy mortgage lender. J.D. Power has named Rocket Mortgage its top mortgage servicer for multiple years—that means the company scored high in categories such as overall satisfaction, new customer orientation, billing and payment, escrow account administration, communication, and customer interaction.