Rocket Companies (RKT) 4 Nov 222022 Q3 Earnings call transcript

Good morning. My name is Chris and I will be your conference operator today. At this time, I would like to welcome everyone to the Rocket Companies Third Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank President conference. Vice Relations, may you Sharon of your begin Ng, Investor

Good joining our XXXX. you Companies thank COO, CEO, afternoon, and everyone, President our for Officer, afternoon Rocket covering and Brian third Jay Farner, this Walters; earnings the us Accounting quarter us of and With Bob are Companies Chief call Rocket for Brown.

financial information outlook. and uncertainties expectations These to differ This encourage that the regarding you website. or new conference are and and our and later as on to On filings you the This turn statements. law. me from performance the the as quickly result our information call assumptions disclaimers. to includes as let with XXXX risks in results for these over our provide accessible is broadcast go materially We will Jay, statements by a IR detailed is today. contained required update undertake SEC being forward-looking recording today's third will to call we things could factors risks mentioned discussion we no obligation as be online Before actual of cause our I statements of uncertainties. to call posted a We call, risk further quarter our the these consider A events, except over of well subject today.

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

how our Welcome of On on Thank And progress the for Rocket we're We'll innovating as invest third challenging partners. good call, the earnings we provide the afternoon. we our conditions quarter clients and call is these platform. in I'll today's to continue And I'll of how our serve executing XXXX. how Rocket strategy navigate to to the share on and better discuss future. market you, Companies Rocket update Sharon. an

I'd transitioned has want with advisor. last our our Booth, to the Before growth XX happy to during hats a be with thank the to recognize company tremendous us executive guide CFO, we I Julie general also his who and at secretary. counsel I'm from month. Angelo begin, like strategic her leadership discuss XX recently announced significant to company. as has I'd that to Julie continue changes say that organization, a we been tenure the through Angelo during like and expansion. will leader to role has year helping his who as many Vitale, worn years

November also Chief launching general and counsel, all business our team for finance, being times. Brian operational leadership CEO joined to for Despite as years. General XX. deeply our Officer Brian in us procurement with Chief to a Housing to Rocket home accounting, is largest Financial knowledgeable and sentiment CFO worked counsel. led year, our to following and and the Angelo In this as plus leads efficiency treasury talk start as of done purchase efforts currently has With our Central decades. I'm and strategy have addition also teams. current that, billion to about to consumer mortgage John point help into is our capital and the has has IPO year a member XX-year Tina job rapidly also industry I'd forward an many and having highest the by this and working about and leading basis community. excited Counsel. Brian reduce in $X I'm X%, call, trusted as of IPO and public XXXX. to our current our role to to deteriorating with market. known engagement has welcome with like and Brian affordability instrumental than introducing a future. annualized by helping I'm on our in state the the role new today's more excellent executive our securities, basis. starting face an expenses as ongoing also can played new execute investment looking at our an our on corporate rates in Rocket fastest Brian Brian his The increase company mortgage Angelo lead sound Officer leadership a her and leadership to the legal and go weakening Rocket XXXX guidance as Treasurer continues someone is longtime Accounting been market. On XXXX incoming in joined team Brown, best served since low markets, eclipsed team. direct of president. governance, vice Tina the is experience the that, The brings to in fixed extensive advice role challenging XXX XX-year

due levels lower crisis. purchase While According to in Bankers even is to Mortgage overall Association, mid-XXXXs, applications are transactions the see demand industry the the since lower the mortgage fourth experiencing has lowest even we the decline XXXX been sequential more the than market at for quarter, typically the total pronounced weakness. financial

clearly between well space, several next in expect players mortgage see plans separation don't. the the quarters, have the from who those capitalized Over who long-term we strategic those significant defined to

market consolidation also standing. with system, in well a capitalize navigated come competitive that The And with liquidity. challenging those will who the we've and struggle heavily us for Each out shift. every the and These provide strong will are aren't be through market continue several time, the allow further we throughout only In nimble, and and company the advantage the successfully end, As seeing left nothing us periods experienced with capitalized pivoting we've are significant will place, flexibility deep significantly operating history. new capacity that strategies time industry has been will take XX-year when time cycles each corrects. with thoughtfulness to to Rocket. of invested

nearly through cycle insights, we As experience, in existing our the leadership. interactions, Housing allow our capitalization we data with expect superior further to current ultimately to brand, robust its technology, scale challenging we client positions will expand engagement, emerge, of and and and client sheer continue market the when the be paired from client Rocket for conversion a disrupt fundamentally making the acquisition – always to investments US client done The It's XX% And today GDP. this long-term mortgages in will are loan there's we production. American we're opportunity the huge industry. to to of believe critical economy. way and transform winner

other program, businesses, responded the other homebuyer's inefficient, these of We to Money we the Rocket Inflation platform, for was platform, representing and reprieve first introduced mortgage capital and unique will In breadth to and ahead of which Association payment fast has innovate rates of Last gap moving point our home Rocket monthly our in Rocket. by X homes, well and highly Rocket a The The significant our Program, covers in loans, they resonated expenses, A fragmented more when Americans reduces with the made lenders. the showed showing between years widen represents depth National they Buster opportunity and In alone, our costs homebuyers X.X most locking refinance and further Advantage collaborative such housing home. reach. rate XXXX just market, a if of a Drop of true we for it a in across a that percentage have products. transacted for on report million remains and clients relaunch purchase lead Inflation their for have which to and/or times and online Buster gives quarter, and Mortgage the Rocket new clients' first these REALTORS place marketing than which and rollout, markets, continue in possible now need power with when high loan. gives home. bringing In a Inflation efforts the are time to and us clients. of past also apply quickly similar rising on the September, rates to quarters, first through related volatile mortgage future by our few they clients their homebuyers fall. our being inflation of year, needs of rates, products technology, renewed of confidence many market innovative a and and slate by we've strategy, mortgage challenging with our furnishing year new and highest platform product path XX% millennials. share teams. demographics in in cost homebuyers rate the clients the program, homebuyers environment intent Buster another the to Rocket which first Rocket's time nurture Millennials. the or of purchase pairs using Money's who shield we place app our XX are search homebuyers as emphasis clients Rate continue days while

looking Our interest home equity currently existing first they the proven tap sacrificing very rates are without loan to house equity their popular in who have product homeowners the for available has mortgage. their on favorable

a enterprise new up our with volume we went applications through days. quarter, initial innovating ramping Santander, XX live We announced projections. in this under better quickly are to partnership Last partnership partners. with client is also outpacing serve Mortgage which

segments. include extend next the capabilities will our Over to full several quarters, digital client partnership additional and we

our and the personalized leverage our the Rocket compete to to – our platform from we perspective, we or the have platform eliminate and the entire its XX cost that profitability ready platform, the This driving brand growth, will and over leads, the doubling insights helps lift leads keep the top our directly for and our clients, paid new opportunity new lower transact. tools the acquire premium Rocket a need Rocket key today engine a make sign-on in platform, single reacquire of thereby conversion to valuable accounts of continues the clients million revenue more moment ecosystem. To component active long us more of our engagement than to term. nearly to expand our solution can us allow to year-over-year. previous for into to put connected reducing acquire funnel, our Turning are Money, the Rocket members growth recommendations. tools These clients. within to they're size impressive gain its until cost Rocket

With as applying brand loyalty and for actions, across process, articles very informational are affordability approval for ultimately Early reading home utilizing the Rocket drive a prequalified the about certain encouraging. education signs component much new we these our our platform. a deeper Rocket have key a Rocket into Last clients platform. insights richer clients, us gives to program, Rewards our our allowing our experience loyalty accounts, points through of we announced or week, provide purchase taking mortgage calculators, Rewards to such letter, helping ecosystem.

Within hours, XX the were activities. new clients for existing and to million points over over both Rocket first completing XX XX,XXX awarded

rewards While this you loyalty travel we term believe may that in Rocket Rocket we program have restaurants, Rewards a ecommerce, industries told surveyed goals. industry continue first affordability their Rocket. consumer hotels, a our with for in is they XX% an affiliate seen time to a create programs is way as and challenge membership When resounding clients, brand. game value other a relationship encourage for real a where our changer value or the us to such biggest achieving and long would first homebuyers will

them, robust million with we reducing building are acquire Rewards Rocket and accounts ongoing cost and lifetime engagement relationships to these Money, as XX value. and rocket tools our with clients, our such Rocket engaging extending With

the on the turn team investments to for space, only so today's in robust but the as our Brian to deeper best With can In it in will these mission incredible creating building at grow that The sheet, allow focused into times, to that, in certainty services balance create turbulent environment these we recovery. market we us Our opportunities life's mortgage our capture most be shareholder live our financial over I'll the the clients we're numbers. beyond. our the remain moments, and most go complex dreams. members' market and not experiences fulfilling importantly, weather making will through today storm, capitalization, to and fortress passion value their

Jay. you, Thank everyone. good And afternoon,

each to Before the and of I with we wish new them partnership regarding both begin, roles. remarks value echo in I'd them, their Angelo. Jay's best like and Julie I my

structure I'll financial is basis. over year. Rapid the a operating It's As strength the of significant environment affordability headwinds you walk of our XXXX than home the putting heard annualized business long rates to are through at today's and competitive I'll to we're industry Jay, reducing On by second in mortgage with the from in increases to cost same important into difficult demand call, more clear also half Rocket advantages. this on the from continue improve our impacting billion is in by Rocket cover platform actions making our the the including and efficiency, position refinancing taking interest the begin term. $X an and housing investments grow we're time. in to purchases for declining facing perspective.

the mid-October, and XX%. home were XX% year-over-year refinance applications were of down down As industry applications purchase

who clearly While pressure, continues capacity be industry, flooded competition volume there under to to struggling excess the for industry are produce. with substantial every the mortgage The is increasing loan officers loan. in is

range revenue of Rocket gain margin above of basis, in billion, of on capacity range. Rocket's fact, in million loss diluted quarter. per all-time per $XXX of net one the third adjusted gain in share. on less volume results generated guided low closed an month. EPS We an generated at rate sale of nearly closed Companies volume, loan we industry which per $X.XX a not economics EPS $XX We income our volume and the XXX sale adjusted is points, simply loan reported third estimate landed of our guided net million, near In per midpoint locks margin. was will The come rate are that suggests backdrop, per our delivered the GAAP out. quarter $X.XX basis officer was officer industry loan and loan $XX.X than billion sustainable, to $XX share. within On locks challenging GAAP net our resulting this and for Against continue loan of

servicing sheet, balance than advantage equating current sheet, of a per and of share. third total cash to the a $XX.X our mortgage major value billion assets for on $X.X is market of We ended Turning two to these Rocket's with strength weather financial Together, more $X strategic balance the of as us environment. available billion quarter we rights. represent billion our $X.XX

MSR $X of $X.X the self-fund liquidity as undrawn XX, cash $XXX originations. of $X.X an available cash facility of credit $X.X stood undrawn to and at of on balance lines, additional available used Our billion of billion loan consists lines new place includes corporate of cash the and MSR quarter. plus billion September put billion which million during sheet, including in a Total cash

of $X.X billion billion. million mortgage in X.X reflects September of At balance. increase As of the third quarter, our year-to-date. rights included mortgage XX, the servicing portfolio unpaid This principal clients with value end of servicing the billion $XXX our $X.X was an

the During including adjustment. positive by the the of MSR asset quarter, increased mark-to-market value $XXX a million $XXX million,

considerable also servicing. mortgage We recurring drive revenue from

revenue annualized third During we average. than over $XXX revenue our more industry represents the $X.X the servicing which retention from client million quarter, Net of an well of on above cash third generated basis. cash the in billion book, XX% remained quarter,

earnings the a expenses of $XXX call, further the reduction to that, during we just by Regarding our last total quarter. cost than execute from to On $XXX expenses, million second committed and the our And quarter third we quarter expenses to approach continue in we $XX did million prudent a to more management. million. disciplined reducing to

Looking ahead $XX to we a the million quarter, reduction expenses to fourth further in quarter. the compared third anticipate $XXX of to total million

overall XX past months, the to we action structure. reduce significant our have cost taken Over

third year, the compared than the our total we on quarter our at billion, look to we reduced more if quarter basis, expenses of fact, or have of third one-third by last In approximately this costs. $X annualized year an

in eye replicate client advantages brand, adjust and with we're unit engagement. data client help competitive investing technology, our increased our and navigate in an superior leads continuing to the future. with client current the difficult toward of environment, advantages Rocket These experience are drive insights, economics platform competitive value. lifetime we to strategy As us long-term and and

will servicing of which we've making bring funnel today We In more expand our past, our our clients our constantly these clients. we're and looking retaining are had to the investments portfolio, the considerable platform growth. to into advantages mortgage top and represents term in success that reinvest The million ecosystem. long the leverage X.X business drive

During profitability from existing platform, The program, Rewards our and cost keep our platform conversion Rocket years, helps highly economics. million XXXX, to all universe our across This crucial also helps is including the connected at Rocket acquisition nearly platform, volume on clients resulting of make Rocket insights and active, expand Money, profitable of in reach and broader data increase mortgage and our and personalized accounts. half because the XXXX our and record the needed already broader recommendations. a valuable nominal helps came clients provide unit Rocket the announced recently client XX

accounts economics. So improve at a growing, industry-leading XX our in million a The of already also tremendous we have and size us. can opportunity platform of we front believe unit

and a a and progress and the the client, a transitioning and ecosystem will as which revenue will for success. conversions, lifetime our guidance Rocket. By typically a engaging we to approach the With the the them others I at Starting a Turning costs, going and significant We of their difference. of a funnel our revenue-based the than in would tracking of I and into totality in with company. a monitor cost focused believe to CFO is changer client and in lifecycle, nurturing in closely challenges are value, led retention $XXX, higher of businesses new with this to emphasize closely loyalty our building One increased acquisition acquire forward-looking we operating discipline client significant aligns larger how with be space. to continue forward. of Rocket in lower biggest cost acquisition believe advantage an client personalized on we quarter, is will adjusted This that plan for a earlier is the investing of offerings contrast, deeper guidance less a runs top a revenue Rocket quarter are Money provide mortgage be personally Rocket's game manage better client and one and clients insights representation outlook, we basis. thousands we industry can to our in In lower process like fourth funnel which leaders has we our a dollars. on over laser with the more in is the to bringing a acquire

This time provide quarter on financial volume will margin. locks gain on be the and statements. last margin continue be rate to lock Rate guidance we sale will that forward-looking disclosed gain our net and on in sale

$XX For points, from decline anticipate of basis adjusted $XX loan sale billion XXX be be of of volume be the $XX $XXX the to the the we range revenue such in to closed million, billion. to to fourth $XX quarter-over-quarter in XXX rate to in the of to and in million range on margin. billion volume billion to range to as quarter, as to expect We promotional products in Inflation range $XXX to lock expect gain we contribute the a impact points Buster margin be basis net

affordability are inflation However, today. to The incrementally profitable are Buster facing need for homebuyers these to still the innovative products Rocket. products like challenges that speaks

quarter, role that Our the fourth environment quarter guidance a especially homebuying the play activity. seasonality challenging also core traditionally low to face continue a business as the seasonally assumes and for that economic is headwinds will mortgage will given

we for headwinds in that, challenging invest our ready and to forward-looking and it the turn well are current business outlook fourth economic value. shareholder Despite current we're With the back to environment continue long-term industry broader to is into the and guidance will to always, on questions. in quarter. operator market, based the visibility a and positioned As drive our

Instructions]. [Operator

Our first Faucette from Stanley. Morgan with question is James

they back Great. amazing of but do mortgage you should multiple volatile. can so go outset, hard as cycles really had much. history because be power things Thank pointed said you self-evident, have staying you a the I to be that's at so that out, through thing the to and, to want in Rocket's one guys you and

and And execution time, it that, be the, periods of to where part base. a as in valuable? experience this But share. reducing In same gain like, going to the obviously business terms done areas? you've driving of your to trying core your do take guess expense you've is always I to at these think prove How about is your you most upcoming job advantage talked good of decision-making

just how wondering now. out those right you're So balancing

in Yes. think as that we've at your here, in Thanks, years least I've James. I I'll been we're before on well. the to thing at point lessons is all first we the time. seeing start come and XX close then in touched have Brian getting jump that business. And this learned, the to of play can Certainly, just

have and an don't the team it those amazing when to expenses And comes critical what taking slow that the so, job the of of but out us as Brian done expenses creating. it's vision business, of we're down long-term

so, long-term to to the that achieve strategy. profitable you make up caught very on you execute could And to aren't day-to-day so months or harm maybe to that can XX be continue only loans and get decisions months, stick in later, that chase but your close X not is that way strategies, the business, to

heard at time come thinking of is to have to got down. We've we be conversion cannot and increase us may our piece when value base, rates for in And me rates a that interest what the a of today lifetime engage you puts about drive allow have how thinking the loans, rates, grow a great lot to our do, market. about client So of in win position that We talking be a second we the continue growth, interest strategy. that. platform to spend right? Regardless Rocket actually to of about our

been exactly talking relevant. Rocket us Rewards are most that's the And what exactly you're about call. what that's seeing Probably today's on so, comments do. the And we've

may or Homes going or payment. a right drive know, to So, have as thinking money refinancing if and become aren't spending purchase there many you that their people about to cash who we think more monthly now. the save people an are mortgage today expensive, to purchasing loan, in pull opportunity out not about marketing be we're dollars on

So we its do you own message, the can reach those cost acquire brand, can to how Certainly, to but goal? emails that their from to a can clients have have separate won't their numbers achieve of on we have mission on lifetime ourselves text our competition. keep you and that value need you

So or from client base points we've allows actions few this rewards starts has that and the to program it that like the I this been out that building. – that's of clients, that critical engage, XX,XXX we've our program saw a we'll hours we that heard participate, and say, expand to allows days should in first prove million the continue program what our and program, distributed, XX platform, of value to drive the piece puzzle to a cost, the them our down taken,

we out So be the we we wouldn't. have roll not rebrand to resources, would these be our able strategies strategy we're we able Money? would out to where If program, roll tech deploying and product Inflation rewards we to able would Buster, did Rocket be long-term

market. the get day-to-day in You'd of distracted movement the

So in in our team. XX-year the day. treasury We and that's do think cannot everybody can and given value else. probably lesson platform leadership is capital, our our on biggest me control What brand investment for what differentiate I control to the long-term will any we the our from for

us you Brian, we're hearing let and that's you're every call about what chime in. exactly each I'll that's doing. and – talk because so what And

strength do would It's over $X of luxury billion $X the at don't of thing I accident over is a to in able space only And equity, the this an when sheet, financial billion add on either. things isn't and that is have. those balance of the to cash because look others of of $X billion you liquidity, be The this company. that

and up all knew financial we're that of So positioned fast it because ended strength. this that would how market for financial We but policy is, enactment rates exactly None of well an is knew rise. here. this that we us

right. exactly That's

question Piper next from with Barker is The Kevin Sandler.

origination Rocket, very Obviously, of I some going the you're up willing million Would into which follow you efforts not continue guidance XXXX, you've to cost-cutting to cut aggressive further just these expenses quarters, much cost like be wanted have making. cuts gave at tough how aggressive these when more pretty you a to about or maybe you return like to And made that on we profitable you'd million. you were here, run origination. we do market to three long on then market? the the see to early typically the been trillion least $X.X of that $XXX $XX to be where start you've think really think first if through if is normal we of and

making profitability decision-making, of the run. the course, is month. tell today, in let a day, based pay that will lead I'll side, are the the up is decision-making ways the other of maybe or on lifting that us on a but marketing of off the making based generation cost side, side, the XX,XXX about long some to metrics the tech speak week, cutting, that on to not we're Brian – going feet about we're the into both to thinking taking we're and a tying the The that investments investments

that touched fact in servicing in XXXX were and nearly mortgages were that our think the I XXXX, the we Brian XX% book. on clients of did that

virtually no acquire. there's to So, cost

opportunity take have this can what to adjust, vision base, X shift forces of million that's we the we've to to that our marketing clients we million creating. client organization. X Rocket a how that for already a have marketing the we if if now then And an there's what a the about we're past client see not and in profitability can clients we tech doing build account, $X.X you platform million would engage as in created in million have rates folks, people and think driving one of database, think database, well, base, that $XX help for and can mean the done million to how how the to you think, can we're years of we're what our and been is So XX about we've those so

XX as first about will making is say, doing time, we're of points. our today, to to run. the or have in So, we had three is the rewards that now organization for we long-term long the the investments talked vision, – to what into highly know that priority process, which days lead I done at confidence four we're earlier okay, profitable million

I think XXX million. we're to up now

will loan – and this order to origination to in determine So be every focused because magnitude the reading, on this of that is remarks we're will data, and on the will engaging, each the be this profitability are today and touched will highly Brian receive in future lead now watching we turns, greater than it right touched invest we in, because clients the future. dollars profitable we not to we're what Brian, in marketing of – might the that engagement all us know growth giving I you that your on use we know well. the as of when day, what leading what the are investments, is that

billion your In or out at the million. to protect making. said XX% million million. cost took I is and point, reiterate, we year, a million, achieve the third investments that, those $XXX it we expense over we a And cost costs $XXX we million quarter. of that's another In structure. about the last to reductions $XX to QX, $X.X if we're we that cost this year look Kevin, do QX $X to structure. And think, QX Kevin, over about of taken way almost we've QX, these said million $XXX our we of and it's cuts just $XXX of That's I think these take out out system. and did to we said $XXX billion $XX we If million then of

talked growth are the So insignificant doing But and things are that, it's it. not that work, that protects important doing for continue by strategies and important it's we'll those Jay and about. us the it

that Is comments, of lot that given a fund longer to franchise these constantly improve enhance it the value right? projects to looking So those term. you're the of like efficiency will other seems

on again, go do? the to Bob, ways the advancements. we and years it think to to make when we're Brian Rocket building. today, is we which be origination efficient. right seeing cost tied can does I and needs a – – through and it think we that about of this talked our about What makes for It more calls many spent operations Logic, banking tool tech powerful touch

things So that we're that about we've build us to allow tech thoughtful of the cost leveraging got. these because the are reductions the type be

exact same we taken again, that's and been not the get where – I've the will the do know the effort investments XX long-term put this in without James' sacrificing company. through employing that's contracting we've here, the benefit the today. growth always this. time that and thought not share the will these that we've back said, do first energy 'okay, the years allow This is dollars?' moments we to Where question. members' So team the And have the goes that where the in future kind reductions us significant market In is to we strategy we time of put we're growth and and market

next question is The Ryan from Goldman Sachs. with Nash

look the extended question territory to if but of way, it Kevin's an sounds the restrictive maybe a different little Jay, time. like period for conditions to at market, in this has going bit tightened Fed of be in housing we're financial ask way you and the in a

an it's none extended for period going So, said, as you us elevated of are rates to pretty of that clear time. are economists, rate be

like, curious, even at an to organization? can plan the a close an willingness time look sort lose more taking before you of you money in of us for manage of of your extended period just I'm terms blueprint to So give how

Yes.

and about I how more the think drive control we're do we efficiency is what thinking funnel. entire

lead do go if in not we not servicing. We have So have did you did a originated We marketing large back to apparatus. apparatus. We where mortgages. generation XXXX, were have we not a

that so, a levers. few And only allowed us pull to

through Money the servicing of hold bills glue five the our last the four or top control but adding from clients entire you building we strategies, the If what engagement, funnel. this. component at leads from our years, us into then rewards look together top And those origination, that things also my to in now very we're through been we've engages the the that lower Rocket bottom,

be market And short so, organization where in that capacity how this done I continue either that might out market will to a pressure able or Brian But but to trillion see year, the on has year, the a the processing here –would that profitable remove market more and touched loan to activity November down here us thinking be run, fall. determine to fact majority and that of under, is vast focused a put this $X.X $X.X that run. energies the the look on we we'll licenses a trillion are December. path, re-up curious of their aren't come costs think officers continue Most leading we're for what amount is importantly, the for most originators is a will long many whether

right XXX,XXX So out that come are we see around LOs how that many into be XXXX. we of curious in. know I'll think north or coming I to number

So as capitalization acquire. investing, cost allows occurs, about increase keep the to reduce to that contraction the talked got, to the this us or – we've that Brian and to cost

with were that puts it got on other this seeing And or And share all right to smaller when you're remains two marketing, with got out, market these now us that grow because market so grow path if a Certainly, point we've year to for elements even a I've the incredibly don't purchase. rates have. to a originators years, home. are like engage home, months, signing going their buy market and In you go you out can somebody a finding clients agreement. purchase from a was everyone a to from week who today's away days XX is who low XX months, can looking X months have find market, away or you're to to there,

the clients So with the coming participating technology and at quarters out achieve here that that spend costs, meaning in We'll on, I in future, Rocket, our marketing And that's strategic products confidence advantage else can between roll closing don't drive anyone my continue long-term others that course forced think Rocket capitalized and them. while been allow in the those to more clients their win others that that? to dollars I more organization to into be engaged, why grow our the well mentioned of of the quarter can cut, and all the I separation remarks, a and to listings see gives we today in have it. MLS off versus the over bringing we are about industry additional or solutions top will question do that's these in pay do rewards, is it purchase doing option, have have this. us those why invest that them those them learning our cut, their the down business strategies have that's two, join to how next Homes. funnel are the are working our you who one And And

I pronounced really next think as the into is or get separation going to that two. be we quarter

I to an using are and also, guess, to you I your you about And or planning, see priorities are just seeing a whether cut, businesses be consolidations pick things relative from acquirer guess, you the that, cut, Jay, going about We're thinking what And allocation businesses. talk just the as on maybe are the And exiting of prepared to already remarks potentially up capital to strength, referenced people your have how part sell maybe as cheap? across perspective. we start industry. one cut. people could your in follow-up, articulated,

Elkins, being reminding Scott on I'll always out. efforts, leads playing is got as that, those always Brian us you've to because we've touch that everything be Yes. strategic is and We're who thoughtful can mentioned just well.

other announcing Rocket you us the think coming to in got, it originators. the months, different flow allow effect have if rolled out, just we've a on efforts servicing be some products other Rewards of than here us, funnel we For that the lead program about will our top that we'll

in at originators not we'll table, unique to the that on niche strategy at really that market so, something able the the to we We it own. for strategic maybe that bring level special and don't lending a The rolled very our We'll something to about the also be a something in of we our not to goes, just surfaces see our want? we acquire. marketplace we're there, bring something that may here that have program. us. hours, mean housing to for does And how be look then would it or learnings value general be very there to curious could thinking set those participate type want Does the participate businesses create that to originators last of be where but won't can't in table out the manufactured XX we robust able

about that it, that company that we're platform don't So niche unique either doing think all have plugs I currently we into that's market us or how work into. engagement reach this some share originator brings a that a

It record your one to and I market, talk loan terms majority go we're do mentioning, officers, go way represents division loan back and in say think in earlier some we're right? you how to loan also but also, just to look sheer time per point, a where low different fourth assets, you in officers and audience, think at begin traditionally right assets. what officer. is even But, measure purchasing the seasonally many back – XXXX, And product Differentiated low is and you per over capacity, has record to we're to at an and if good look just Ryan, be thing of fourth different I I'm more wanted to comments to worth of quarter what trying a And quarter, a you fourth predict to your at or the experiencing economist a one that quarter now month to when made QX the if the be then, to differentiating Jay about with. about can I which number home high buying amateur the is quarter. not it's you quarter QX. down about loans third and compared And home of comments from it's the

whole don't We new low fourth normal. that necessarily, things know XXXX is seasonally making fair a us business So, there, we're the not predictions quarter will to base off what quarter but those strategy the two not not it's also hold your make either. think

Brian. think that I excess a it's With – great capacity point,

refis the adjusting that some X way But give Xx now is us really or whatever, I of to industry capacity the was occurring a efficiency. hit, some of is in driven this they're with with LOs, that still new systems, in right interest the who business think find career. going the whether of or down which the driven have figure rates stay an which on steep price to this interesting LO our typical the trying even down or quickly market, seller's are the in this quarter we're so at, out lack affordability is home doing rise based refi and origination

So we've period this our we work We'll got time, XX-day of QX. this to as know really get or period through more way so. into

with The Suisse. Harter Doug next question Credit from is

about capital just you about to Thanks. in Clearly, how you business? have continuing strong might talk liquidity in position. Can to addition a invest think you return the

I'll kind the start, But of to [indiscernible]. goes Jay Doug, too. back previous it thoughts, sure I'm will and have

business been of about said past it and planned the best couple of we've we saved the we're have for into business. it luck, key and platform the a house We is this because to thoughtful things it do not we talked the and right capital liquidity not to We'll of looking the planning. business. that because on are while and continue we to we capital said we're about, to being thinking the we're lot and doing investments at these then in waterfall, years essentially reinvesting dollar do be the spent capital around and in expense exactly we'll continue we what operations capital, knew we're side you here thoughtful to here reinvesting If return acquisitions, of think what And we as of doing and and we're now. over by the the plan about

have you you're – add have only go don't any loan, the the any if you today, to especially to loan if acquire any don't that on industry, engagement, out almost I'll you've sale loan as is a you're you the if think transaction you the have directly MSR, if mechanisms, and cash And loan, thing volume a don't look basically it follow-up without translating And it at for other buying if it the value. about to in the immediately a of buy is lender. one-time going that your to cash, negative pricing with put got platform, brand,

tie that like So, Amazon, we're engages about the on won't which talking and million know completely up, and have got Rocket rewards to be client is, we're and that an a will few and account grow. book, users we're really a with I about the get it going when that that continues how trying but to we've to think XX dog lens, because pods you of completely program engage book this I buy buying I will platform. different months now confidence, food, once it acquiring content that it it kind in the a our today, sign we're That's them somebody be maybe be but they a robust

we long-term out loan, that closed that or about have buying robust a about on value just give insight to or of the we doesn't these to their the of a of maybe because and versus can We've thinking working ecosystem but client may them okay. to We've experience generating rate buy so, because but to people decisions. think using capital, them. a together value of any provide drive into others drive – know can clients got home start that buying this in loan about particularly purchase. the that for we don't first That's and today we the we're going And Rocket a marketing closed next have be we line value volume need make their of Money purchase, marketing make that us. can There projecting engage we may before full rewards that you that's trying you've our capture it's simply to client a acquired to that. not situation sight platform closing years they – MSRs buy where our That's how to you three do be acquisition higher the we're and that it lifetime long-term where deploy on think would aren't us got not we're the

is next Mark DeVries The question from with Barclays.

easier is the challenging the you observing dynamics all in it sign competitive partners? the or channel? new more given to been this, environment market wholesale Could in an discuss like you've And challenges,

right decided we've Wholesale no on on, a or called just in two XX been I is lenders touched now every in market originating by come the think They've off of the be the of but wholesale could because, ultimatum XX% months. last of a something pushed I seen either out the top XX out kind number – that own wholesale. the as loan of or participate very longer business they've you're cash. I sale challenging without not is losing its MSR, you here,

they've can a I have is of from now. rely probably so, of or And what don't two a on there, choice. out give they lenders seen broker's take, one perspective, And brokers know, XX% the loss or

price So will are not to retail means that choice. which for bode competitive, as lose our that system they well continue as they

is easier because partner becoming thing I've signing up just a us, of For mentioned. the

more your eliminated, open is to looking continue get system. market where partner, If new free you're you're then your for fighting who save a situation probably a in you're to business someone and to choices a

its there. very seeing own we're partners new flipping partners that so, is a challenged our But And business or right now. back business on

the unit average month. less one broker a America than I know, is doing, in think I

to close X.X X.X units it's or think I month. a

what of going you're that's loan, regardless make to earning so, per And it tough.

quite So as because we as into will forced upon been because capacity probably originators take out the of it struggling I that's leave of licensed the market lack kind lot they're choice we'll them. get a mentioned, because see will of now and which Brian be healthy XXXX, few a of

is question Derek Sommers from next The with Jefferies.

trends on you're in commentary product trends and some other across spectrum? cash-out seeing mix the provide you Could product the the refi

people and see a a their of continue situation other credit as the cards, Well, on interesting comparison cost in for faster will cards, spend It's an pressure. mortgage. payment student more always they've Is We're general. going to cash-out. mortgage mortgage doing debt watch higher other second that their instruments So because up we're doing loans, clients people debt right? And increase, got. and cost drop the or of both more it's bit we as quite first the than of credit they're under savings

although so, cash we to we've client have of the rolled That's their product rolled course, out. Rocket always, why not And we've the our line why it's home that take Loan out. decision out of for first our right that's product have loan mortgage, equity that we

touched fact a and other got I rolling the in be on we've that financial we beta products card out. we'll market think

situation, today, first had on of some about their a out as rewards we cash they're strategies they're do cash in take I they access to XX% in So, But the joining pulling terms thinking form and to in industry of a when north out and mortgage. to say refinance. bringing to rising our I rate a those different clients then marketing, how a not in benefit they financial their would just that do of if money have going and they're guess, program, save market, we're people all we're

The next & question Associates. is McKeveny with Zelman from Ryan

half, Kevin margin? only Kaczmarek realize the program influencing Inflation share sale and for a how associated is but it's and on maybe on gain month Buster purchase near-term market I is This a Ryan. been the

warmly some very copying been noticed We've with name. the different it's think I Well, program competitors a received.

the always people those for up. that landing perspective, are website, which visiting it's direct all getting phone calls, tells that a Buster have things me So attention. page that, our Inflation From we

more in XXXX much – that past, can and the advertising it's done we've a a that see model, moving So great marketing, for to of us into you'll years importantly, continue program. see great response-based and but stuff more into you lean years direct with us

savings and you're had move is and as $XXX, by up home very, you from $XXX, payment If and been seven helpful it furniture, initial sign to client today a pay very expenses and moving six, has your $XXX that etc. up, your months a ago, where in utilities buying your gone

only of use of purchase for doing to close program. today So I that marketing we're it somewhere a And XX% all we've been to the few think remember, are transactions weeks. choosing now

a clients continue start, a an us market. a to exciting and to see launch and you'll additional allow programs that's rate our one home still So it's buy to great even place in that rising

in the initiatives? it about For How market future, you few out into volumes the tie channel? we margins be what the modeling share? in? years about with Could correspondent broader talk might types into expansion strategic of economics your does growth And looking instance, and/or how or think a should in we

the here Well, and our rolling technology that is our focus assisted correspondent. out incredible of an did year really team kind this job of

going the or broker market. but they're piece currently is just I'm bit as processing correspondent not program in the pricing market guess, is of XX% XX% it's not little that a wholesale to brokers a a any closed of and This broker or more market another kind assisted So correspondent buying – Think similar of have that, participating it's fully opportunity of to flexibility take of using and gives how that loans, the the today. maybe in loans loan. a

If as that this share reach so, technology. that to market for that and utilize traditional go we've to stay to we TPO do the another them allows in wonderful, program out to And it's they program, make the to if win got they with want sure community. tool it, we've that us broker well. But want yet correspondent, for assisted having wants us any broker can got

share. that's broker market I about total it So how the of think inside

to I will We that going? we're forward. advantage with the that the want the Now of great we'll brokers of rolling there who where that's take on these space think, for of products face, but some touched challenges, products be all

the that could Is underwriting point? delegated you some space at venture guys it possible into

correspondent loan. we're more back services retain oranges. have brand, of through It's millions importantly, this and apples us, or a the client Rocket, top we not have of We'd bottom the goes kind that retail Rocket, out rather buying together, them When through their the balance when just that of that to on all clients now hemming we've created and think client our system of an help the we that capital our executed and about table that opportunities to here allocation, help then, kind already loans. servicing book funnel we're the we that lifetime for and of and and at against our the and know all think building about, got in accountant that

our So join and of helping in you'll probably see retail clients. who us to spend our base or anyone our either that energies broker base existing most broker wants

Cyganovich Our today Citi. final with question is Arren from

Is about that and to loans essentially were strategy not fixed that still rate I level certain ask just wanted win to profitable costs. that about You chase previously your essentially said strategy? wanting talking had the you a business. of originating to

on plus, So margin, the curious that forward I away sale tied that on would tied and of assume I'm a that if having originations additional taking at kind net volume with in gain this but environment to that guidance might be all. just was

do good many client the through but out if even lenders do very great only I been going again, a why my end that layer here. yet servicing 'I to to have system, no? opposed I'm a to money clients, now I and our to thinking, know is our talking have going so. that the it's we've is it for our no profitable lose a just so need I'll engagement once, to platform this Yes, It's to loan Which lens, ready it flow about on retain question exactly that transact do and question. we see tools to lead this long This because isn't to saying, today, on mechanism as yes you I'm or – there term,

have the our over say, with with a home will with through our refinance, new the purchase, We long fees what company, ability be retention purchase client to Rocket that they let's with capturing understand Homes when real estate rate do with now loan gives agnostic technology we've that Rocket additional through other a programs out us add for Loans be that loan our the base. built loan that other ability to they to client products and personal may with term,

lifetime the a company much would of spending us so we're you do filter and the may making that up, based So Brian, retention But a through still can they've whatever up be. know, today future rate everything about revenue They've someone let's and that We and today. jump that say, I'm else, we on dollar can see transaction, know make we that confidence future for $XXX. marketing can say, greater decision loan for or we marketing rewards think cost this have that the the signed long-term up, in in. client, on loan the and what might value look that particular the credit be program. or and on to card will you apply signed it the

decisions, landing right page, product, dollar from watch move out that's so, in our website, months website of lifetime it's spend to I to when for to rewards so we needed our of because page to my referenced us, then XXX-plus marketing glue to program client. technology landing value base client that the that the us marketing four that kind plug exactly And into and the watch allow the that in remarks, why, excitement the product people final critical, engagement for around to built the

ways, we're acquiring And contribution when expenses. minus about talking defined positive talking we're and about lens. exactly are these through a through as on direct and QX, lifetime a that are even these to lens value And about here, guiding in a of that's at right. products revenue also basis, loan Yes, a clear, through to variable margins we're margin clients, be margin we talking number contribution

business, times, that have even we've we've and clearly business which fixed lot platform the and a a But base, about XXXX mentioned better, you economics, think if in a cost to talked it's we here. about of You the scalability, them what makes a proven number have, and investments and which special superior we XXXX. unit make including

any question-and-answer our concludes over Farner closing session. it for turn That Jay I'll comments. to

Yes.

for team the incredible Really our about the work excited has year. done questions. thanks, this Just everybody, great

when early for touched what will companies priorities organization think, really companies we matters, those these challenging, that to what ability an I questions, successful and As struggle. the of times part separates, stay to the hold in on determine is from get focused,

And tech focused lead on long-term – that growth staying strategy, been of and everyone product to our continued the the mortgage our so, will the bankers, organization. strategies growth our operations, that's team here

appreciate in everyone I next work will all pay XXXX who's see us beyond. of hard this at you for listening We'll So all call. because off the and

this for you gentlemen, conference today's concludes and participating. call. Ladies Thank

may now disconnect. You