The Rock Family of Companies and its more than 100 affiliated companies across the country employ more than 30,000 team members, including more than 17,000 in Detroit’s urban core.įrom 2013 through 2018, Detroit-based Quicken Loans closed nearly half a trillion dollars in home loan volume across all 50 states, and in 2019, for the tenth consecutive year, earned J.D. In 2016, the Cleveland Cavaliers won the NBA championship. He is also Founder and Chairman of Quicken Loans, the nation’s largest mortgage lender, Founder and Chairman of the Rock Family of Companies, a portfolio of technology businesses and real estate investments, and Chairman of the Cleveland Cavaliers. As with so many things Quicken does, no other big financial firm would have dared behave in that way.Dan Gilbert is Founder and Chairman of Rocket Companies, which went public on August 6, 2020. Quicken is contesting the lawsuit, saying the government’s case rests on 55 mortgages out of 246,000, and that it has got its facts wrong about 47 of those. Other financial firms hit with similar complaints have grumbled about a shakedown and settled. But a good test of its values came last year, when the government sued it, claiming it had fiddled data on mortgages for poorer house-buyers backed by the government, which caused the government losses when the loans went bad. It is hard to say precisely how well all this works, since Quicken, as a private firm, releases little financial data. Show indifference to a customer and, Mr Gilbert writes, “I will find you… and I will personally root you out.” They are told that “a penny saved is a penny earned” is terrible advice that they should only say “no” when they have exhausted the possibility of saying “yes”, and so on. New recruits receive an eight-hour induction from Mr Gilbert and others, built around 19 principles (“isms” in Quicken-speak). Some workers scoot around the bright open-plan offices on hoverboards. Desks and chairs are fancy, adjustable, ergonomic affairs the bathrooms have televisions set to sports channels. Quicken tries to ensure good customer service by keeping its own employees happy. For customers who are confused or whose applications are unusually complicated, help is available by phone or e-mail. The underlying software conducts a quick electronic sweep of the applicant’s financial records, along with any available data about the property to be purchased. It claims customers can fill out an online application and receive a decision on its latest offering, Rocket Mortgage, within eight minutes. Instead Quicken aims to compete on service. Its interest rates are typically 0.25-0.4 percentage points higher than the cheapest alternatives. But because it relies on relatively expensive wholesale funding, it would struggle to compete with other providers on price. 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. WELLS FARGO, America’s biggest provider of retail mortgages, drums up custom, and cheap funds to lend, through its 6,246 branches.
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