Rocket Companies will soon shut down Rocket Pro Originate, a mortgage origination platform for real estate agents, insurance agents, tax professionals and other financial professionals who are also licensed to originate mortgages.
According to a copy of an email sent to affected originators and reviewed by HousingWire, the Rocket Pro Originate platform — part of the company’s third-party origination channel — is to be sunset by the end of June. All real estate agents, insurance agents and other financial pros must submit new mortgage applications by March 29, 2024, and loans in the pipeline must close by June 28, 2024, Rocket said in the email.
The email also told affected originators that while Rocket is not revoking their license, they will be “removing sponsorship” of the license. Practically speaking, this means that affected originators will need to find a new sponsor if they want to continue originating mortgages.
It was not immediately clear how many originators will be affected by Rocket shutting down the Rocket Pro Originate platform.
In a statement to HousingWire, a Rocket spokesperson said the company will be focusing its efforts in the third-party origination channel on mortgage brokers, which already make up the bulk of business in TPO.
“As we continue to evaluate our business and more precisely focus on the areas of growth for Rocket Mortgage, we made the decision to wind down our relationships with insurance agents, financial advisors, tax professionals and real estate agents who have been originating mortgages on our behalf,” the spokesperson said.
“With a narrower focus, Rocket will concentrate on providing the technology needed to accelerate homeownership across the country and provide breakthrough tools that are essential to mortgage brokers assisting those in their community.”
In January, Rocket Pro TPO leader Mike Fawaz told HousingWire that the company was planning to court more brokers in 2024 through product enhancements and improved services. He said the company would continue to provide credit reports at no cost to brokers who close loans through Rocket. The lender is also providing a discount on data intelligence software Mobility Market Intelligence.
In fourth-quarter 2023, Rocket reported $10.3 billion in closed loans through its direct-to-consumer division and $8.5 billion through its TPO channel, its conduit to mortgage brokers that has historically been a stronger source of purchase business. The company doesn’t break out purchase business versus refinances in its earnings reports.
This is good to hear. The insurance basically did nothing and Rocket took it from there. Everyone wants to be in our business, however, they do not want to earn their commission or become knowledgeable about mortgage lending.. They just want to refer the business and get paid. Real estate agents are the worst, most of them cannot even complete an application.