Rocket Mortgage Stock – Rocket Cos., Inc. engages in the provision of a suite of services related to homeownership and other personal financial transactions. The company was founded by Daniel Gilbert in 1985 and is headquartered in Detroit, MI.
Table of Contents
Rocket Mortgage Stock Overview
Rocket Mortgage was developed in response to customers’ need for a simple, fast and secure mortgage experience. It is easy to use and cost-effective. Its advanced computer technology enables it to manage borrowers’ applications from origination to closing.
Its mortgage products are available through both its website, RocketHome.com, as well as through its mobile app, RocketSmart Mortgage, which allows borrowers to make, approve, and complete their loan application, online.
It is one of the fastest growing mortgage lenders in the US and is available at more than 30,000 locations nationwide. It provides borrowers with access to the right mortgage products for their individual needs at a low cost.
What are Rocket Mortgage Stock and How Do They Work?
This is the big question. Rocket Mortgage Stock helps people with bad credit scores who are interested in buying their first home.
Rocket Mortgage uses technology to complete mortgage applications online, providing assistance to those who might not qualify for traditional lending methods.
This unique mortgage plan is not available to the general public. However, in order to qualify, a prospective homebuyer must meet certain income requirements and agree to two-way mortgage checks to mitigate the risk of default.
Those who are interested can visit the website to explore the mortgage options, and if interested, then complete a pre-approval form.
Final Step for Rocket Mortgage Stock.
Once pre-approved, the person goes to Rocket Mortgage’s homepage.
What is the History of Rocket Mortgage and Why Did It Start?
I’m not sure how Rocket Mortgage came to be, but the entire mortgage industry has a history. When I started looking into the history of Rocket Mortgage, I was surprised at the rate at which it has grown and morphed over time. The process of borrowing a mortgage is a very old one and my first thought was that Rocket Mortgage must have been some sort of corporate rip off of the past. It wasn’t. I found it explained, the history of mortgage lending is a very long and involved tale of attempted monopolization. Here’s the scoop on how it all started.
It’s important to know the history of the mortgage industry in the U.S. in order to understand Rocket Mortgage. The mortgage industry has been around since the founding of the United States.
The Present Situation of Rocket Mortgage Stock
Rocket Mortgage has made a decent performance in the past year. Its share price has gained 34% since the start of 2017, outperforming the Zacks Mortgage-Backed Securities industry’s gain of 21.6%.
The Mortgage-Backed Securities industry, which had total revenues of $18.9 billion in 2017, has been facing increasing litigation, particularly the 2010 Residential Mortgage-Backed Securities (RMBS) Rule, which is intended to deter fraud and reduce risk in the mortgage-backed securities market. A lower degree of oversight has raised concerns over possible foreclosure abuses.
Furthermore, Rocket Mortgage stock has paid a special cash dividend to its shareholders. The company announced a 1-for-10 reverse stock split of its common stock on May 21, 2017, to boost its share price.
What is the Future Outlook for Rocket Mortgage Stock
Rocket Mortgage, Inc. provides digital mortgage lending technology, data, and software for lenders and mortgage brokers in the United States. The company provides solutions that facilitate the lending process, with the goal of reducing time and costs associated with underwriting, validation, and closing. It offers Rocket Mortgage, an automated underwriting and loan application process, which automates most underwriting and loan application processes. The company also provides Rocket Mortgage Marketplace, an end-to-end digital mortgage marketplace; Rocket Direct, a mortgage lender’s digital interface; Rocket Mortgage Connect, a loan closing solution; and Rocket Closing Support, a support solution.
A highly profitable company trading at a rich valuation and with an astounding growth rate. The company has plenty of room to grow and should see an addition of more than 50% in profits this year.
In my opinion, this is definitely one of the rare success stories I have seen in the stock market over the past decade.
Just remember: do not count Rocket Mortgage Cos., Inc. out. With the right fundamentals and the right technology in place. I expect these to continue becoming a household name for financial transaction.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and no business relationship with any company whose stock is mentioned in this article.