Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Mar. 17, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39432
Entity Registrant Name	Rocket Companies, Inc.
Entity Central Index Key	0001805284
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4946470
Entity Address, Address Line One	1050 Woodward Avenue
Entity Address, City or Town	Detroit
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48226
City Area Code	313
Local Phone Number	373-7990
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	RKT
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 0
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for use in connection with its 2021 Annual Meeting of Stockholders, which is to be filed no later than 120 days after December 31, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K.
Class A common stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		115,374,508
Class D common stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		1,869,079,483

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 1,971,085	$ 1,394,571
Restricted cash	83,018	61,154
Mortgage loans held for sale, at fair value	22,865,106	13,275,735
Mortgage servicing rights (“MSRs”), at fair value	2,862,685	2,874,972
MSRs collateral for financing liability, at fair value	205,033	205,108
Notes receivable and due from affiliates	22,172	89,937
Property and equipment, net	211,161	176,446
Deferred tax asset, net	519,933	0
Lease right of use assets	238,546	278,921
Loans subject to repurchase right from Ginnie Mae	5,696,608	752,442
Other assets	941,477	501,587
Total assets	37,534,602	20,122,846
Liabilities:
Funding facilities	17,742,573	12,041,878
Lines of credit	375,000	165,000
Senior Notes, net	2,973,046	2,233,791
Early buy out facility	330,266	196,247
MSRs financing liability, at fair value	187,794	189,987
Accounts payable	251,960	157,397
Lease liabilities	272,274	314,353
Forward commitments, at fair value	506,071	43,794
Investor reserves	87,191	54,387
Notes payable and due to affiliates	73,896	62,225
Tax receivable agreement liability	550,282	0
Loans subject to repurchase right from Ginnie Mae	5,696,608	752,442
Other liabilities	605,485	395,790
Total liabilities	29,652,446	16,607,291
Equity:
Net parent investment	0	3,510,698
Additional paid-in capital	282,743	0
Retained earnings	207,422	0
Accumulated other comprehensive income (loss)	317	(151)
Non-controlling interest	7,391,654	5,008
Total equity	7,882,156	3,515,555
Total liabilities and equity	37,534,602	20,122,846
Class A common stock
Equity:
Common stock	1
Class B common stock
Equity:
Common stock	0
Class C common stock
Equity:
Common stock	0
Class D common stock
Equity:
Common stock	19
IRLCs
Assets
Derivatives, at fair value	1,897,194	508,135
Forward commitments
Assets
Derivatives, at fair value	20,584	3,838
Liabilities:
Forward commitments, at fair value	$ 506,071	$ 43,794

Consolidated Balance Sheets (Parenthetical)	Dec. 31, 2020 $ / shares shares
Class A common stock
Common stock, par value (in dollars per share) \| $ / shares	$ 0.00001
Common stock authorized (shares)	10,000,000,000
Common stock issued (shares)	115,372,565
Common stock outstanding (shares)	115,372,565
Class B common stock
Common stock, par value (in dollars per share) \| $ / shares	$ 0.00001
Common stock authorized (shares)	6,000,000,000
Common stock issued (shares)	0
Common stock outstanding (shares)	0
Class C common stock
Common stock, par value (in dollars per share) \| $ / shares	$ 0.00001
Common stock authorized (shares)	6,000,000,000
Common stock issued (shares)	0
Common stock outstanding (shares)	0
Class D common stock
Common stock, par value (in dollars per share) \| $ / shares	$ 0.00001
Common stock authorized (shares)	6,000,000,000
Common stock issued (shares)	1,869,079,483
Common stock outstanding (shares)	1,869,079,483

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Gain on sale of loans:
Gain on sale of loans excluding fair value of MSRs, net	$ 11,946,044	$ 3,139,656	$ 1,968,716
Fair value of originated MSRs	3,124,659	1,771,651	959,172
Gain on sale of loans, net	15,070,703	4,911,307	2,927,888
Loan servicing (loss) income:
Servicing fee income	1,074,255	950,221	820,370
Change in fair value of MSRs	(2,294,240)	(1,596,631)	(228,723)
Loan servicing (loss) income, net	(1,219,985)	(646,410)	591,647
Interest income:
Interest income	329,593	250,750	200,926
Interest expense on funding facilities	(245,523)	(134,916)	(99,325)
Interest income, net	84,070	115,834	101,601
Other income	1,800,394	736,589	588,428
Total revenue, net	15,735,182	5,117,320	4,209,564
Expenses
Salaries, commissions and team member benefits	3,238,301	2,082,797	1,703,460
General and administrative expenses	1,053,080	685,028	592,504
Marketing and advertising expenses	949,933	905,000	878,027
Depreciation and amortization	74,316	74,952	76,917
Interest and amortization expense on non-funding debt	186,301	136,853	130,022
Other expenses	701,594	328,250	210,530
Total expenses	6,203,525	4,212,880	3,591,460
Income before income taxes	9,531,657	904,440	618,104
Provision for income taxes	(132,381)	(7,310)	(3,244)
Net income	9,399,276	897,130	614,860
Net income attributable to non-controlling interest	(9,201,325)	(897,130)	(614,860)
Net income attributable to Rocket Companies	$ 197,951	0	0
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 1.77
Diluted (in dollars per share)	$ 1.76
Weighted average shares outstanding:
Basic (shares)	111,926,619
Diluted (shares)	116,238,493
Comprehensive income:
Net income	$ 9,399,276	897,130	614,860
Cumulative translation adjustment	885	877	(1,061)
Unrealized loss on investment securities	5,033	0	0
Comprehensive income	9,405,194	898,007	613,799
Comprehensive income attributable to noncontrolling interest	(9,207,296)	(898,007)	(613,799)
Comprehensive income attributable to Rocket Companies	$ 197,898	$ 0	$ 0

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Prior to reorganization transactions	Subsequent to reorganization transactions	IPO	Greenshoe option	Common Stock Class A common stock	Common Stock Class A common stock IPO	Common Stock Class A common stock Greenshoe option	Common Stock Class D common stock	Common Stock Class D common stock IPO	Common Stock Class D common stock Greenshoe option	Additional Paid-in Capital	Additional Paid-in Capital Subsequent to reorganization transactions	Additional Paid-in Capital IPO	Additional Paid-in Capital Greenshoe option	Retained Earnings	Retained Earnings Subsequent to reorganization transactions	Net Parent Investment	Net Parent Investment Prior to reorganization transactions	Accumulated Other Comprehensive (Loss) Income	Accumulated Other Comprehensive (Loss) Income Prior to reorganization transactions	Accumulated Other Comprehensive (Loss) Income Subsequent to reorganization transactions	Total Non-controlling Interest	Total Non-controlling Interest Prior to reorganization transactions	Total Non-controlling Interest Subsequent to reorganization transactions	Total Non-controlling Interest IPO
Beginning Balance at Dec. 31, 2017	$ 2,842,435					$ 0			$ 0			$ 0				$ 0		$ 2,841,569		$ 0			$ 866
Beginning Balance (shares) at Dec. 31, 2017						0			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	614,860																	615,132					(272)
Other comprehensive income (loss)	(1,061)																			(868)			(193)
Net transfers to Parent	(706,853)																	(706,853)
Stock based compensation, net	33,636																	33,636
Noncontrolling interest attributed to acquisition	5,769																						5,769
Unrealized gain (loss) on investment securities	0
Ending Balance at Dec. 31, 2018	2,788,786					$ 0			$ 0			0				0		2,783,484		(868)			6,170
Ending Balance (shares) at Dec. 31, 2018						0			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	897,130																	898,497					(1,367)
Other comprehensive income (loss)	877																			717			160
Net transfers to Parent	(210,941)																	(210,941)
Stock based compensation, net	39,703																	39,658					45
Unrealized gain (loss) on investment securities	0
Ending Balance at Dec. 31, 2019	3,515,555					$ 0			$ 0			0				0		3,510,698		(151)			5,008
Ending Balance (shares) at Dec. 31, 2019						0			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	9,399,276	$ 4,643,234	$ 4,756,042														$ 193,104		$ 4,644,288					$ (1,054)	$ 4,562,938
Other comprehensive income (loss)		(664)	1,551																		$ (542)	$ 66		(122)	1,485
Net transfers to Parent	(3,827,706)																	(3,827,706)
Stock based compensation, net		$ 61,200	$ 74,987										$ 28,096						$ 61,180					$ 20	$ 46,891
Effect of reorganization transactions	36,732								$ 20			253,102				9,968		(4,388,460)		(6,079)			4,168,181
Effect of reorganization transactions (shares)						372,565			1,984,079,483
Distributions for state taxes on behalf of unit holders (members), net	(8,504)															(481)							(8,023)
Distributions to unit holders (members) from subsidiary investment	(1,366,677)																						(1,366,677)
Proceeds received from stock issuance				$ 1,744,075	$ 263,925		$ 1							$ 1,758,719	$ 263,925											$ (14,645)
Proceeds received from stock issuance (shares)							100,000,000	15,000,000		(100,000,000)	(15,000,000)
Use of proceeds to purchase Class D shares and Holding Units from RHI	(2,023,425)								$ (1)			(2,023,424)
Increase in controlling interest resulting from Greenshoe	0											2,047				4,847				(26)			(6,868)
Unrealized gain (loss) on investment securities	5,033																			6,969			(1,936)
Non-controlling interest attributed to dissolution	(884)																						(884)
Increase (decrease) in controlling interest of investment	7,682											278				(16)				80			7,340
Ending Balance at Dec. 31, 2020	$ 7,882,156					$ 1			$ 19			$ 282,743				$ 207,422		$ 0		$ 317			$ 7,391,654
Ending Balance (shares) at Dec. 31, 2020						115,372,565			1,869,079,483

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating activities
Net income	$ 9,399,276	$ 897,130	$ 614,860
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	74,316	74,952	76,917
Provision for deferred income taxes	66,530	0	0
Loss on extinguishment of senior notes	43,695	0	0
Change in non-controlling interest	0	0	5,770
Origination of mortgage servicing rights	(3,124,659)	(1,771,651)	(959,172)
Change in fair value of MSRs	2,294,240	1,596,631	228,723
Gain on sale of loans excluding fair value of MSRs, net	(11,946,044)	(3,139,656)	(1,968,716)
Disbursements of mortgage loans held for sale	(316,702,083)	(144,002,172)	(83,555,240)
Proceeds from sale of loans held for sale	318,223,938	139,275,683	87,068,203
Stock-based compensation expense	136,187	39,703	33,636
Change in assets and liabilities:
Due from affiliates	7,249	3,764	(1,033)
Other assets	(412,688)	(29,107)	(64,359)
Accounts payable	94,562	64,670	(49,083)
Due to affiliates	20,947	1,539	12,543
Premium recapture and indemnification losses paid	(4,010)	(684)	(645)
Other liabilities	151,174	10,473	(11,223)
Total adjustments	(11,076,646)	(7,875,855)	816,321
Net cash (used in) provided by operating activities	(1,677,370)	(6,978,725)	1,431,181
Investing activities
Proceeds from sale of MSRs	561,560	136,820	0
Net decrease (increase) in notes receivable from affiliates	60,516	2,830
Net decrease (increase) in notes receivable from affiliates			(1,335)
Decrease (increase) in mortgage loans held for investment	3,973
Decrease (increase) in mortgage loans held for investment		(18,914)	(521)
Net increase in investment securities	(2,500)	0	(28,147)
Purchase and other additions of property and equipment, net of disposals	(106,346)	(48,842)	(64,473)
Net cash provided by (used in) investing activities	517,203	71,894	(94,476)
Financing activities
Net borrowings (payments) on funding facilities	5,700,695	6,965,275
Net borrowings (payments) on funding facilities			(1,044,180)
Net borrowings (payments) on lines of credit	210,000	0
Net borrowings (payments) on lines of credit			(10,000)
Borrowings on Senior Notes	2,000,000	0	0
Repayments on Senior Notes	(1,285,938)	0	0
Net borrowings on early buy out facility	134,019	107,924	88,324
Net (payments) borrowings notes payable from unconsolidated affiliates	(9,276)
Net (payments) borrowings notes payable from unconsolidated affiliates		37,916	0
Proceeds from MSRs financing liability	190,621	325,182	0
Issuance of Class D Shares to RHI	20	0	0
Proceeds from Class A Shares Issued prior to Offering	6,706	0	0
Proceeds received from IPO, net of cost	1,744,075	0	0
Proceeds received from Greenshoe option	263,925	0	0
Use of Proceeds to Purchase Class D Shares and Holding Units from RHI	(2,023,424)	0	0
Distributions to other unit holders (members) of Holdings	(1,375,181)	0	0
Net transfers to Parent	(3,798,582)	(210,941)	(706,853)
Net cash provided by (used in) financing activities	1,757,660	7,225,356	(1,672,709)
Effects of exchange rate changes on cash and cash equivalents	885	877	(1,061)
Net increase (decrease) in cash and cash equivalents and restricted cash	598,378	319,402	(337,065)
Cash and cash equivalents and restricted cash, beginning of period	1,455,725	1,136,323	1,473,388
Cash and cash equivalents and restricted cash, end of period	2,054,103	1,455,725	1,136,323
Non-cash activities
Loans transferred to other real estate owned	1,484	2,451	1,932
Supplemental disclosures
Cash paid for interest on related party borrowings	3,486	5,603	1,680
Cash paid for interest, net	366,953	255,788	207,539
Cash paid for income taxes, net	$ 55,695	$ 10,970	$ 515

Business, Basis of Presentation and Accounting Policies

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Accounting Policies

Rocket Companies, Inc. (the "Company", and together with its consolidated subsidiaries, "Rocket Companies", "we", "us", "our") was incorporated in Delaware on February 26, 2020 as a wholly owned subsidiary of Rock Holdings Inc. ("RHI") for the purpose of facilitating an initial public offering ("IPO") of its Class A common stock and other related transactions in order to carry on the business of RKT Holdings, LLC ("Holdings") and its wholly owned subsidiaries.

We are a Detroit-based holding company consisting of tech-driven real estate, mortgage and eCommerce businesses. We are committed to providing an industry-leading client experience powered by our platform. In addition to Rocket Mortgage, the nation’s largest mortgage lender, we have expanded into complementary industries, such as real estate services, personal lending, and auto sales where we seek to deliver innovative client solutions leveraging our Rocket platform. Our business operations are organized into the following two segments: (1) Direct to Consumer, (2) Partner Network (refer to Note 15, Segments).

Rocket Companies, Inc. is a holding company. Its primary material asset is the equity interest in Holdings which, through its direct and indirect subsidiaries, conducts all of the Company's operations. Holdings is a Michigan limited liability company and wholly owns Quicken Loans, LLC, Amrock Holdco, LLC (“Amrock”, "Amrock Title Insurance Company" and "Nexsys Technologies LLC"), LMB HoldCo LLC (“Core Digital Media”), RCRA Holdings LLC (“Rock Connections” and “Rocket Auto”), Rocket Homes Real Estate LLC (“Rocket Homes”), RockLoans Holdings LLC (“Rocket Loans”), Rock Central LLC, EFB Holdings Inc. (“Edison Financial”), Lendesk Canada Holdings Inc., RockTech Canada Inc., Woodward Capital Management LLC, and Amrock Title Insurance Company. Because Rocket Companies, Inc. is the managing member of Holdings, Rocket Companies, Inc. indirectly operates and controls all of the business affairs of Holdings and its subsidiaries. As used herein, “Rocket Mortgage” refers to either the Rocket Mortgage brand or platform, or the Quicken Loans business, as the context allows.

Initial Public Offering

On August 10, 2020 we completed the IPO of our common stock pursuant to a Registration Statement on Form S-1 (File No. 333-239726), which closed on August 10, 2020. In the IPO, we sold an aggregate of 115,000,000 shares of Class A common stock, including 15,000,000 shares of Class A common stock purchased by the underwriters on September 9, 2020 pursuant to the underwriters’ option to purchase additional shares at the initial public offering price, less underwriting discounts and commissions. Rocket Companies, Inc. received net proceeds from the IPO of approximately $2,023,000 after deducting underwriting discounts and commissions, all of which was used to purchase 115,000,000 non-voting membership units of Holdings (the “Holdings Units”) and shares of Class D common stock from RHI. Prior to the completion of the offering, RHI, Holdings and its subsidiaries consummated an internal reorganization.

As a result of the IPO and the reorganization:

• Rocket Companies, Inc. is the sole managing member of Holdings, which owns direct interests in (a) Rocket Mortgage and (b) various other former direct subsidiaries of RHI.

• Dan Gilbert, our founder and Chairman (our "Chairman"), RHI, and Rocket Companies, Inc. are members of Holdings.

• The certificate of incorporation of Rocket Companies, Inc. was amended to, among other things, authorize the Company to issue four classes of common stock: Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock.

• Holdings is treated as a partnership for U.S. federal income tax purposes and, as such, is itself generally not subject to U.S. federal income tax under current U.S. tax laws. Each member of Holdings will be required to take into account for U.S. federal income tax purposes its distributive share of the items of income, gain, loss and deduction of Holdings.

In connection with the reorganization, we entered into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Internal Revenue Code of 1986, as amended (the “Code”) that relate to the reorganization transactions. We will retain the remaining 10% benefit of these tax savings.

As the reorganization is considered transactions between entities under common control, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. Prior to the reorganization, Rocket Companies, Inc. had no operations.

Basis of Presentation and Consolidation

Prior to the completion of our reorganization and IPO, as defined above and in our registration statement on form S-1, RKT Holdings, LLC and its subsidiaries operated as part of RHI and not as a stand-alone entity. Income from RKT Holdings, LLC and its subsidiaries prior to the reorganization and IPO has been accounted for as a non-controlling interest in our Consolidated Statements of Income. Our Consolidated Statements of Changes in Equity presents the accumulated net income prior to the reorganization and IPO in net parent investment as the financial statements prior to the reorganization and IPO reflect combined subsidiaries operating as part of RHI. As part of our reorganization, we reorganized the legal structure of our entities, so they are all under a single parent entity, RKT Holdings, LLC. As the sole managing member of Holdings, the Company operates and controls all of the business and affairs of Holdings, and through Holdings and its subsidiaries, conducts its business. Because we manage and operate the business and control the strategic decisions and day-to-day operations of Holdings and also have a substantial financial interest in Holdings, we consolidate the financial results of Holdings, and a portion of our net income is allocated to the non-controlling interests. RKT Holdings, LLC is considered a variable interest entity, or VIE. In addition, because RKT Holdings, LLC and its subsidiaries are under the common control of RHI, we account for the reorganization as a reorganization of entities under common control and initially measured the interests of RHI in the assets and liabilities of Holdings at their carrying amounts as of the date of the completion of the reorganization. The net parent investment as a result of the common control transaction with Rocket Companies, Inc. was allocated between non-controlling interest and additional paid-in capital based on the ownership of RKT Holdings, LLC.

Prior to the reorganization and IPO, all revenues and expenses as well as assets and liabilities that are either legally attributable to us or directly associated with our business activities are included in the consolidated financial statements. Net parent investment represents RHI’s interest in the recorded net assets of the Company. All significant transactions between the Company and RHI have been included in the accompanying consolidated financial statements and are reflected in the accompanying Consolidated Statements of Changes in Equity as “Net transfers to/from parent” and in the accompanying Consolidated Balance Sheets within “Net parent investment.”

In conjunction with the reorganization and IPO, we reclassified RHI's historical net parent investment in us to additional paid-in-capital. All significant intercompany transactions and accounts between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements.

The Company's derivatives, IRLCs, mortgage loans held for sale, MSRs (including MSRs collateral for financing liability and MSRs financing liability), and investments are measured at fair value on a recurring basis. Additionally, other assets may be required to be measured at fair value in the consolidated financial statements on a nonrecurring basis. Examples of such

measurements are mortgage loans transferred between held for investment and held for sale, certain impaired loans, and other real estate owned. For further details of the Company's transactions refer to Note 2, Fair Value Measurements.

All transactions and accounts between RHI and other related parties with the Company have a history of settlement or will be settled for cash, and are reflected as related party transactions. For further details of the Company’s related party transactions refer to Note 7, Transactions with Related Parties.

Our consolidated financial statements are audited and presented in U.S. dollars. They have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Our consolidated financial statements for periods prior to the reorganization and IPO have been derived from our consolidated financial statements, which combined the subsidiaries that historically operated as part of RHI and were included in the IPO registration statement, with further adjustments only to comply with the presentation requirements for consolidated financial statements purposes and to reflect retrospectively the Amrock Title Insurance Company ("ATI") common control acquisition as discussed further below in the Acquisition Agreement section. Amounts for the period from January 1, 2020 through August 5, 2020, as of December 31, 2019, and year ended December 31, 2019 and 2018 presented in the consolidated financial statements and notes to consolidated financial statements herein represent the historical operations of the Company including those of ATI. These amounts are prepared on a basis materially consistent, including intercompany eliminations, with the amounts as of December 31, 2020 and for the period from August 6, 2020 through December 31, 2020, reflecting the consolidated operations of the Company including ATI.

We believe the assumptions underlying the consolidated financial statements, including the assumptions regarding allocation of expenses from RHI are reasonable. Prior to the reorganization and IPO, the executive management compensation expense has been allocated based on time incurred for services provided to Holdings and its subsidiaries. Total costs allocated to us for these services were $96,199, $52,250 and $47,301 for the years ended December 31, 2020, 2019 and 2018, respectively. These amounts were included in salaries, commissions and team member benefits in our Consolidated Statements of Income and Comprehensive Income. In our opinion, these consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position and cash flows for the periods presented.

Acquisition Agreement

On August 5, 2020, Rocket Companies, Inc. entered into an acquisition agreement with RHI and its direct subsidiary Amrock Holdings Inc. pursuant to which we acquired Amrock Title Insurance Company ("ATI"), a title insurance underwriting business, for total aggregate consideration of $14,400 that consisted of 800,000 Holdings Units and shares of Rocket Companies, Inc. Class D common stock valued at the initial public offering price of $18.00 per share (the number of shares issued equals the purchase price divided by the price to the public in our initial public offering), the acquisition closed on August 14, 2020 subsequent to the IPO date on August 10, 2020. ATI's net income for the year ended December 31, 2019 was $4,700. Because the Acquisition was a transaction between commonly controlled entities, U.S. GAAP requires the retrospective combination of the entities for all periods presented as if the combination had been in effect since the inception of common control. Accordingly, the Company’s consolidated financial statements included in this Form 10-K, including for the years ended December 31, 2019 and December 31, 2018, reflect the retrospective combination of the entities as if the combination had been in effect since inception of common control.

Management Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates.

Subsequent Events

In preparing these consolidated financial statements, the Company evaluated events and transactions for potential recognition or disclosure through the date these consolidated financial statements were issued. Refer to Note 6, Borrowings for

disclosures on changes to the Company’s debt agreements and Note 11, Income Taxes for distributions made that occurred subsequent to December 31, 2020

Subsequent to December 31, 2020, the Company sold MSRs relating to certain single-family mortgage loans with an aggregate unpaid principal balance of approximately $2.0 billion and a fair market value of approximately $16 million as of December 31, 2020. The sales represented approximately 0.5% of the Company’s total single-family mortgage servicing portfolio as of December 31, 2020.

At the time of issuance of this report, the direct and indirect impacts that the COVID-19 pandemic and recent market volatility may have on the Company’s financial statements are uncertain. The Company cannot reasonably estimate the magnitude of the impact these events may ultimately have on its results of operations, liquidity or financial position. However, management of the Company is unaware of any known adverse material risk or event that should be recognized in the financial statements at this time.

Special Dividend

On February 25, 2021, our board of directors authorized and declared a cash dividend (the "Special Dividend") of $1.11 per share to the holders of our Class A common stock. The Special Dividend was paid on March 23, 2021 to holders of the Class A common stock of record as of the close of business on March 9, 2021. The Company funded the Special Dividend from cash distributions of approximately $2.2 billion by RKT Holdings, LLC to all of its members, including the Company.

Share Repurchase Authorization

On November 10, 2020, our Board of Directors approved a share repurchase program of up to $1.0 billion of our Common Stock, including both Class A and Class D, which repurchases may be made, from time to time, in privately negotiated transactions or in the open market, in accordance with applicable securities laws (the “Share Repurchase Program”). The Share Repurchase Program will remain in effect for a two-year period. The Share Repurchase Program authorizes but does not obligate the Company to make any repurchases at any specific time. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. As of December 31, 2020 no shares have been repurchased under the Share Repurchase Program.

Revenue Recognition

Gain on sale of loans, net—Gain on sale of loans, net includes all components related to the origination and sale of mortgage loans, including (1) net gain on sale of loans, which represents the premium we receive in excess of the loan principal amount and certain fees charged by investors upon sale of loans into the secondary market, (2) loan origination fees (credits), points and certain costs, (3) provision for or benefit from investor reserves, (4) the change in fair value of interest rate locks and loans held for sale, (5) the gain or loss on forward commitments hedging loans held for sale and interest rate lock commitments (IRLCs), and (6) the fair value of originated MSRs. An estimate of the gain on sale of loans, net is recognized at the time an IRLC is issued, net of a pull-through factor. Subsequent changes in the fair value of IRLCs and mortgage loans held for sale are recognized in current period earnings. When the mortgage loan is sold into the secondary market, any difference between the proceeds received and the current fair value of the loan is recognized in current period earnings in Gain on sale of loans, net. Included in Gain on sale of loans, net is the fair value of originated MSRs, which represents the estimated fair value of MSRs related to loans which we have sold and retained the right to service. Refer to Note 3, Mortgage Servicing Rights for information related to the gain/(loss) on changes in the fair value of MSRs.

Loan servicing (loss) income, net—Loan servicing (loss) income, net includes income from servicing, sub-servicing and ancillary fees, and is recorded to income as earned, which is upon collection of payments from borrowers. This amount also includes the Change in fair value of MSRs, which is the adjustment for the fair value measurement of the MSR asset as of the respective balance sheet date.

Interest income, net—Interest income includes interest earned on mortgage loans held for sale and mortgage loans held for investment net of the interest expense paid on our loan funding facilities. Interest income is recorded as earned and interest expense is recorded as incurred.

Other income—Other income is derived primarily from lead generation revenue, professional service fees, real estate network referral fees, contact center revenue, personal loans business, closing fees, net appraisal revenue, and net title insurance fees.

The following revenue streams fall within the scope of ASC Topic 606—Revenue from Contracts with Customers and are disaggregated hereunder:

Core Digital Media lead generation revenue—The Company recognizes online consumer acquisition revenue based on successful delivery of marketing leads to a client at a fixed fee per lead. This service is satisfied at the time the lead is delivered, at which time revenue for the service is recognized. Online consumer acquisition revenue, net of intercompany eliminations, were $24,231, $41,895, and $79,774 for the years ended December 31, 2020, 2019, and 2018, respectively.

Professional service fees—The Company recognizes professional service fee revenue based on the delivery of services (e.g., human resources, technology, training) over the term of a contract. Consideration for the promised services is received through a combination of a fixed fee for the period and incremental fees paid for optional services that are available at an incremental rate determined at the time such services are requested. The Company recognizes the annual fee ratably over the life of the contract, as the performance obligation is satisfied equally over the term of the contract. For the optional services, revenue is only recognized at the time the services are requested and delivered and pricing is agreed upon. Professional service fee revenues were $10,884, $8,320, and $5,088 for the years ended December 31, 2020, 2019, and 2018, respectively, and were rendered entirely to related parties.

Rocket Homes real estate network referral fees—The Company recognizes real estate network referral fee revenue based on arrangements with partner agencies contingent on the closing of a transaction. As this revenue stream is variable, and is contingent on the successful transaction close, the revenue is constrained until the occurrence of the transaction. At this point, the constraint on recognizing revenue is deemed to have been lifted and revenue is recognized for the consideration expected to be received. Real estate network referral fees, net of intercompany eliminations, were $42,777, $39,924, and $33,229 for the years ended December 31, 2020, 2019, and 2018, respectively.

Rock Connections and Rocket Auto contact center revenue—The Company recognizes contact center revenue for communication services including client support and sales. Consideration received includes a fixed base fee and/or a variable contingent fee. The fixed base fee is recognized ratably over the period of performance, as the performance obligation is considered to be satisfied equally throughout the service period. The variable contingent fee related to car sales is constrained until the sale of the car is completed. Contact center revenues, net of intercompany eliminations, were $27,904, $27,055, and $23,043 for the years ended December 31, 2020, 2019, and 2018, respectively.

Amrock closing fees—The Company recognizes closing fees for non-recurring services provided in connection with the origination of the loan. These fees are recognized at the time of loan closing for purchase transactions or at the end of a client's three-day rescission period for refinance transactions, which represents the point in time the loan closing services performance obligation is satisfied. The consideration received for closing services is a fixed fee per loan that varies by state and loan type. Closing fees were $457,703, $200,920, and $139,176 for the years ended December 31, 2020, 2019, and 2018, respectively.

Amrock appraisal revenue, net—The Company recognizes appraisal revenue when the appraisal service is completed. The Company may choose to deliver appraisal services directly to its client or subcontract such services to a third-party licensed and/or certified appraiser. In instances where the Company performs the appraisal, revenue is recognized as the gross amount of consideration received at a fixed price per appraisal. The Company is an agent in instances where a third-party appraiser is involved in the delivery of appraisal services and revenue is recognized net of third-party appraisal expenses. Appraisal revenue, net was $78,673, $76,200, and $64,515 for the years ended December 31, 2020, 2019, and 2018, respectively.

Marketing and Advertising Costs

Marketing and advertising costs for direct and non-direct response advertising are expensed as incurred. The costs of brand marketing and advertising are expensed in the period the advertising space or airtime is used.

The Company incurred marketing and advertising costs related to the naming rights for Rocket Mortgage Field House and other promotional sponsorships, which are related parties. For the years ended December 31, 2020, 2019, and 2018, the Company incurred expenses of $8,939, $9,675, and $12,281, respectively, related to these arrangements.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions.

Restricted cash as of December 31, 2020, 2019, and 2018 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten insurance company and a $25,000 bond.


	December 31,
	2020		2019		2018
Cash and cash equivalents	$	1,971,085	$	1,394,571	$	1,089,039
Restricted cash	83,018		61,154		47,284
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$	2,054,103	$	1,455,725	$	1,136,323

Mortgage Loans Held for Sale

The Company has elected the fair value option for accounting for mortgage loans held for sale.

Included in mortgage loans held for sale are loans originated as held for sale that are expected to be sold into the secondary market and loans that have been previously sold and repurchased from investors that management intends to resell into the secondary market.

Refer to Note 4, Mortgage Loans Held for Sale, for further information.

Derivative Financial Instruments

The Company enters into interest rate lock commitments ("IRLCs"), forward commitments to sell mortgage loans and forward commitments to purchase loans, which are considered derivative financial instruments. These items are accounted for as free-standing derivatives and are included in the Consolidated Balance Sheets at fair value. The Company treats all of its derivative instruments as economic hedges; therefore, none of its derivative instruments qualify for designation as accounting hedges. Changes in the fair value of the IRLCs and forward commitments to sell mortgage loans are recorded in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. Forward commitments to purchase mortgage loans are recognized in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income.

The Company enters into IRLCs to fund residential mortgage loans with its potential borrowers. These commitments are binding agreements to lend funds to these potential borrowers at specified interest rates within specified periods of time.

The fair value of IRLCs is derived from the fair value of similar mortgage loans or bonds, which is based on observable market data. Changes to the fair value of IRLCs are recognized based on changes in interest rates, changes in the probability that the commitment will be exercised, and the passage of time. The expected net future cash flows related to the associated servicing of the loan are included in the fair value measurement of rate locks.

IRLCs and uncommitted mortgage loans held for sale expose the Company to the risk that the value of the mortgage loans held and mortgage loans underlying the commitments may decline due to increases in mortgage interest rates during the life of the commitments. To protect against this risk, the Company uses forward loan sale commitments to economically hedge the risk of potential changes in the value of the loans. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes

in fair value of the IRLCs and uncommitted mortgage loans held for sale. The changes in the fair value of these derivatives are recorded in gain on sale of loans, net.

MSR assets (including the MSR value associated with outstanding IRLCs) that the Company plans to sell expose the Company to the risk that the value of the MSR asset may decline due to decreases in mortgage interest rates prior to the sale of these assets. To protect against this risk, the Company uses forward loan purchase commitments to economically hedge the risk of potential changes in the value of MSR assets that have been identified for sale. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the MSR assets the Company intends to sell. The changes in fair value of these derivatives are recorded in the change in fair value of MSRs, net.

Forward commitments include To-Be-Announced ("TBA") mortgage-backed securities that have been aggregated at the counterparty level for presentation and disclosure purposes. Counterparty agreements contain a legal right to offset amounts due to and from the same counterparty under legally enforceable master netting agreements to settle with the same counterparty, on a net basis, as well as the right to obtain cash collateral. Forward commitments also include commitments to sell loans to counterparties and to purchase loans from counterparties at determined prices. Refer to Note 12, Derivative Financial Instruments for further information.

Mortgage Servicing Rights

Mortgage servicing rights are recognized as assets on the Consolidated Balance Sheets when loans are sold, and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. These MSRs are recorded at fair value, which is determined using a valuation model that calculates the present value of estimated future net servicing fee income. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income and late fees, among others. These estimates are supported by market and economic data collected from various outside sources. Refer to Note 3, Mortgage Servicing Rights for further information.

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation of property and equipment is generally computed on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the estimated useful lives or the remaining lease terms. Depreciation is not recorded on projects-in-process until the project is complete and the associated assets are placed into service or are ready for the intended use. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is credited or charged to operations. Costs of maintenance and repairs are charged to expense as incurred. Refer to Note 5, Property and Equipment for further information.

Loans subject to repurchase right from Ginnie Mae

For certain loans sold to Ginnie Mae, the Company as the servicer has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets defined criteria, including being delinquent more than 90 days. Once the Company has the unilateral right to repurchase the delinquent loan, the Company has effectively regained control over the loan and must re-recognize the loan on the Consolidated Balance Sheets and establish a corresponding finance liability regardless of the Company's intention to repurchase the loan. The asset and corresponding liability are recorded at the unpaid principal balance of the loan, which approximates its fair value.

Non-controlling interests

As noted above, we are the sole managing member of Holdings and consolidate the financial results of Holdings. Therefore, we report a non-controlling interest based on the Holdings Units of Holdings held by our Chairman and RHI (the "non-controlling interest holders") on our Consolidated Balance Sheets. Income or loss is attributed to the non-controlling interests based on the weighted average Holdings Units outstanding during the period and is presented on the Consolidated Statements of Income and Comprehensive Income. Refer to Note 17, Noncontrolling Interests for more information.

Stock-based Compensation

In connection with the IPO, equity-based awards were issued under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan including restricted stock units and stock options to purchase shares of our Class A common stock at an exercise price equal to the price to the public in the initial public offering. Stock-based compensation expense is recorded as a component of salaries, commissions and team member benefits. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant, refer to Note 18, Stock Based Compensation for additional information.

Income taxes

Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes predominantly in the United States and Canada. These tax laws are often complex and may be subject to different interpretations.

Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable.

Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. We regularly review whether we may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. We recognize the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We record interest and penalties related to uncertain income tax positions in income tax expense. For additional information regarding our provision for income taxes refer to Note 11, Income Taxes.

Tax Receivable Agreement

In connection with the reorganization, we entered into a Tax Receivable Agreement with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. We will retain the benefit of the remaining 10% of these tax savings. For additional information regarding our TRA refer to Note 7, Transactions with Related Parties, Note 11, Income Taxes, and Note 13, Commitments, Contingencies, and Guarantees.

The Company recognized a liability for the Tax Receivable Agreement based upon the estimate of future TRA payments. The amounts payable under the Tax Receivable Agreement will vary depending upon a number of factors, including the amount, character, and timing of the taxable income of Rocket Companies in the future. Any such changes in these factors or changes in the Company’s determination of the need for a valuation allowance related to the tax benefits acquired under the Tax Receivable Agreement could adjust the Tax receivable agreement liability recognized and recorded within earnings in future periods.

Basic and Diluted Earnings Per Share

The Company applies the two-class method for calculating and presenting earnings per share by separately presenting earnings per share for Class A common stock and Class B common stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A and Class B common stock. According to the Company’s certificate of incorporation, the holders of the Class A and Class B common stock are entitled to participate in earnings equally on a per-share basis, as if all shares of common stock were of a single class, and in such dividends as may be declared by the board of directors. Holders of the Class A and Class B common stock also have equal priority in liquidation. Shares of Class C and Class D common stock do not participate in earnings of Rocket Companies, Inc. As a result, the shares of Class C and Class D common stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings per share. Restricted stock units awarded as part of the Company’s compensation program, described in Note 18, Stock Based Compensation are included in the weighted-average Class A shares outstanding in the calculation of basic EPS once the units are fully vested. Refer to Note 19, Earnings Per Share for more information.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which introduced an expected credit loss model for the impairment of financial assets, measured at amortized cost. The model replaces the probable, incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”) with an immaterial impact to our consolidated financial position, results of operations or cash flows.

Based upon management’s scoping analysis, the Company determined that notes and other receivables are within the scope of ASU 2016-13. The Company determined that these are short-term in nature (less than one year) and of high credit quality, and the estimated credit-related losses over the life of these receivables are also immaterial. For each of the aforementioned financial instruments carried at amortized cost, the Company enhanced its processes to consider and include the requirements of ASU 2016-13, as applicable, into the determination of credit-related losses.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments to Topic 740 include the removal of certain exceptions to the general principles of ASC 740 in such areas as intraperiod tax allocation, year to date losses in interim periods and deferred tax liabilities related to outside basis differences. Amendments also include simplification in other areas such as interim recognition of enactment of tax laws or rate changes and accounting for a franchise tax (or similar tax) that is partially based on income. The transition method varies by amendment and can be on a prospective, retrospective, or modified retrospective basis depending on the amendment. The Company early adopted this standard effective as of January 1, 2020. The adoption of this ASU had an immaterial impact on the consolidated financial statements and related disclosures.

In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics to increase shareholder awareness and make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, with no material effect on our consolidated financial position, results of operations or cash flows.

Accounting Standards Issued but Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”) by the end of 2022. This guidance is effective upon issuance and allows application to contract changes as early as January 1, 2020. The Company is in the process of transitioning its funding facilities and financing facilities that utilize LIBOR as the reference rate. For contracts to which ASC Topic 470, Debt applies, we have applied the optional expedients available from ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. Of the contracts that have been adjusted for the new reference

rate, there has been an immaterial impact on the consolidated financial statements. The Company is continuing to evaluate the impact that the adoption of this ASU will have on the consolidated financial statements and related disclosures.

Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value is the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2, and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions.

Fair value measurements are classified in the following manner:

Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2—Valuation is based on either observable prices for identical assets or liabilities in inactive markets, observable prices for similar assets or liabilities, or other inputs that are derived directly from, or through correlation to, observable market data at the measurement date.

Level 3—Valuation is based on the Company’s internal models using assumptions at the measurement date that a market participant would use.

In determining fair value measurement, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value.

The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of December 31, 2020 or December 31, 2019.

Mortgage loans held for sale: Loans held for sale that trade in active secondary markets are valued using Level 2 measurements derived from observable market data, including market prices of securities backed by similar mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes.

IRLCs: The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor”. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3.

MSRs: The fair value of MSRs (including MSRs collateral for financing liability and MSRs financing liability) is determined using a valuation model that calculates the present value of estimated net future cash flows. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income among others. These fair value measurements are classified as Level 3.

Forward commitments: The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified within Level 2 of the valuation hierarchy.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the year ended December 31, 2020 or the year ended December 31, 2019.


	Level 1		Level 2		Level 3		Total
Balance at December 31, 2020
Assets:
Mortgage loans held for sale	$	—	$	22,285,440	$	579,666	$	22,865,106
IRLCs	—		—		1,897,194		1,897,194
MSRs	—		—		2,862,685		2,862,685
MSRs collateral for financing liability(1)	—		—		205,033		205,033
Forward commitments	—		20,584		—		20,584
Total assets	$	—	$	22,306,024	$	5,544,578	$	27,850,602
Liabilities:
Forward commitments	$	—	$	506,071	$	—	$	506,071
MSRs financing liability(1)	—		—		187,794		187,794
Total liabilities	$	—	$	506,071	$	187,794	$	693,865

Balance at December 31, 2019
Assets:
Mortgage loans held for sale	$	—	$	12,966,942	$	308,793	$	13,275,735
IRLCs	—		—		508,135		508,135
MSRs	—		—		2,874,972		2,874,972
MSRs collateral for financing liability(1)	—		—		205,108		205,108
Forward commitments	—		3,838		—		3,838
Total assets	$	—	$	12,970,780	$	3,897,008	$	16,867,788
Liabilities:
Forward commitments	$	—	$	43,794	$	—	$	43,794
MSRs financing liability(1)	—		—		189,987		189,987
Total liabilities	$	—	$	43,794	$	189,987	$	233,781

(1) Refer to Note 3, Mortgage Servicing Rights for further information regarding both the MSRs collateral for financing liability and MSRs financing liability.

The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of:


	December 31, 2020			December 31, 2019
Unobservable Input	Range	Weighted Average		Range	Weighted Average
Mortgage loans held for sale
Dealer pricing	89% - 105%	99	%	75% - 103%	98	%
IRLCs
Loan funding probability	0% - 100%	74	%	0% - 100%	72	%
MSRs, MSRs collateral for financing liability, and MSRs financing liability
Discount rate	9.5% - 12.0%	9.9	%	9.5% - 12.0%	10.0	%
Conditional prepayment rate	6.6% - 52.1%	15.8	%	7.4% - 44.5%	14.5	%

The table below presents a reconciliation of Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019. Mortgage servicing rights (including MSRs collateral for financing liability and MSRs financing liability) are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 3, Mortgage Servicing Rights.


	Loans Held for Sale		IRLCs
Balance at December 31, 2019	$	308,793	$	508,135
Transfers in(1)	1,215,121		—
Transfers out/principal reductions(1)	(944,446)		—
Net transfers and revaluation gains	—		1,389,059
Total gains included in net income	198		—
Balance at December 31, 2020	$	579,666	$	1,897,194

Balance at December 31, 2018	$	194,752	$	245,663
Transfers in(1)	1,058,143		—
Transfers out/principal reductions(1)	(945,444)		—
Net transfers and revaluation gains	—		262,472
Total gains included in net income	1,342		—
Balance at December 31, 2019	$	308,793	$	508,135

(1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold to third parties and loans paid in full.

Fair Value Option

The following is the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans held for sale that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for mortgage loans held for sale as the Company believes fair value best reflects their expected future economic performance:


	Fair Value		Principal Amount Due Upon Maturity		Difference(1)
Balance at December 31, 2020	$	22,865,106	$	21,834,817	$	1,030,289
Balance at December 31, 2019	$	13,275,735	$	12,929,143	$	346,592

(1) Represents the amount of gains included in Gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option.

Disclosures of the fair value of certain financial instruments are required when it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.

The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes cash and cash equivalents, restricted cash, warehouse borrowings, and line of credit borrowing facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value:


	December 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Senior Notes, due 5/1/2025	$	—	$	—	$	1,241,012	$	1,297,250
Senior Notes, due 1/15/2028	$	994,986	$	1,079,629	$	992,779	$	1,046,683
Senior Notes, due 3/1/2029	$	741,946	$	766,365	$	—	$	—
Senior Notes, due 3/1/2031	$	1,236,114	$	1,298,175	$	—	$	—

The fair value of Senior Notes was calculated using the observable bond price at December 31, 2020 and December 31, 2019, respectively. The Senior Notes are classified as Level 2 in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2020

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

The following table summarizes changes to the MSR assets for the year ended:


	Year Ended December 31,
	2020		2019
Fair value, beginning of period	$	2,874,972	$	3,180,530
MSRs originated	3,124,659		1,771,651
MSRs sales	(770,809)		(486,078)
Changes in fair value:
Due to changes in valuation model inputs or assumptions(1)	(1,274,937)		(784,401)
Due to collection/realization of cash flows	(1,091,200)		(806,730)
Total changes in fair value	(2,366,137)		(1,591,131)
Fair value, end of period	$	2,862,685	$	2,874,972

(1) Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates. Does not include the change in fair value of derivatives that economically hedge MSRs identified for sale.

The total UPB of mortgage loans serviced, excluding subserviced loans, at December 31, 2020 and December 31, 2019 was $371,494,905 and $311,718,188, respectively. The portfolio primarily consists of high-quality performing agency and government (FHA and VA) loans. As of December 31, 2020, delinquent loans (defined as 60-plus days past-due) were 3.91% of our total portfolio. Excluding clients in forbearance plans, our delinquent loans (defined as 60-plus days past-due) were 0.84% as of December 31, 2020.

During the third quarter of 2019, the Company sold MSRs with a book value of $340,303 relating to certain single-family mortgage loans. Based on the contract terms, the sale of those MSRs did not immediately qualify for sale accounting treatment under U.S. GAAP. As a result, the Company was required to retain the MSRs asset (i.e., MSRs collateral for financing liability) and the MSRs liability (i.e., MSRs financing liability) on the balance sheet until certain contractual provisions lapse after June 2020. These MSRs were reported on the balance sheet at fair value using a valuation methodology consistent with the Company’s method for valuing MSRs until those contractual provisions lapsed. Furthermore, the net

change in fair market value (“FMV”) of the MSRs asset and liability from this sale is captured within Loan servicing (loss) income, net in the Consolidated Statements of Income and Comprehensive Income. The unrealized gain of $189,987 and $150,316 relating to the MSRs liability and the offsetting unrealized loss of $189,987 and $150,316 relating to the MSRs asset were recorded in current operations for the years ended December 31, 2020 and December 31, 2019, respectively. Additionally, terms of the agreement require quarterly adjustments to the sales price for changes in prepayment rates at the time of sale for a period of one year. Furthermore, in the year ended December 31, 2019, the Company also sold MSRs with a book value of $145,775 relating to certain mortgage loans, which qualified for sale accounting treatment under U.S. GAAP.

During the fourth quarter of 2020, the Company sold MSRs with a book value of approximately $193,739 relating to certain single-family mortgage loans. Based on the contract terms, the sale of those MSRs did not qualify for sale accounting treatment under U.S. GAAP. As a result, the Company was required to retain the MSRs asset and MSRs liability on the balance sheet until certain contractual provisions lapse after July 2021. These MSRs continued to be reported on the balance sheet at fair value using a valuation methodology consistent with the Company's method for valuing MSRs until those contractual provisions lapse. Furthermore, the net change in FMV of the MSRs asset and liability from this sale is captured within Loan servicing loss, net in the Consolidated Statements of Income and Comprehensive Income. The unrealized gain of $5,945 relating to the MSRs liability and the offsetting unrealized loss of $5,945 relating to the MSRs asset were recorded in current operations for the year ended December 31, 2020. Additionally, terms of the agreement require quarterly adjustments to the sales price for changes in prepayment rates at the time of sale for a period of six months. Furthermore, in the year ended December 31, 2020, the Company also sold MSRs with a book value of $577,070 relating to certain mortgage loans, which qualified for sale accounting treatment under U.S. GAAP.

The following is a summary of the weighted average discount rate and prepayment speed assumptions used to determine the fair value of MSRs as well as the expected life of the loans in the servicing portfolio:


	December 31, 2020		December 31, 2019
Discount rate	9.9	%	10.0	%
Prepayment speeds	15.8	%	14.5	%
Life (in years)	5.05		5.33

The key assumptions used to estimate the fair value of MSRs are prepayment speeds and the discount rate. Increases in prepayment speeds generally have an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase and therefore, the estimated life of the MSRs and related cash flows decrease. Decreases in prepayment speeds generally have a positive effect on the value of MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease and therefore, the estimated life of the MSRs and related cash flows increase. Increases in the discount rate result in a lower MSR value and decreases in the discount rate result in a higher MSR value. MSR uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties.

The following table stresses the discount rate and prepayment speeds at two different data points:


	Discount Rate				Prepayment Speeds
	100 BPS Adverse Change		200 BPS Adverse Change		10% Adverse Change		20% Adverse Change
December 31, 2020
Mortgage servicing rights	$	(115,130)	$	(212,119)	$	(147,420)	$	(279,691)
December 31, 2019
Mortgage servicing rights	$	(101,495)	$	(195,894)	$	(133,039)	$	(259,346)

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Mortgage Loans Held for Sale

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Mortgage Loans Held for Sale

Mortgage Loans Held for SaleThe Company sells substantially all of its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. A reconciliation of the changes in mortgage loans held for sale to the amounts presented on the Consolidated Statements of Cash Flows is below:


	Year Ended December 31,
	2020		2019
Balance at the beginning of period	$	13,275,735	$	5,784,812
Disbursements of mortgage loans held for sale	316,702,083		144,002,172
Proceeds from sales of mortgage loans held for sale(1)	(318,218,159)		(139,275,683)
Gain on sale of mortgage loans excluding fair value of other financial instruments, net(2)	11,105,447		2,764,434
Balance at the end of period	$	22,865,106	$	13,275,735

(1) The proceeds from sales of loans held for sale on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans.

(2) The Gain on sale of loans excluding fair value of MSRs, net on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans, interest rate lock commitments, forward commitments, and provisions for investor reserves.

Credit Risk

The Company is subject to credit risk associated with mortgage loans that it purchases and originates during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be insignificant as it holds the loans for a short period of time, which for the year ended December 31, 2020 is, on average, approximately 17 days from the date of borrowing, and the market for these loans continues to be highly liquid. The Company is also subject to credit risk associated with mortgage loans it has repurchased as a result of breaches of representations and warranties during the period of time between repurchase and resale.

Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment are depreciated over lives primarily ranging from 3 to 7 years for office furniture, equipment, computer software and leasehold improvements. Property and equipment consist of the following:


	December 31,
	2020		2019
Office furniture, equipment, and technology	$	380,826	$	364,957
Leasehold improvements	148,320		133,002
Internally-developed software	100,393		67,132
Projects-in-process	79,434		39,895
Total cost	$	708,973	$	604,986
Accumulated depreciation and amortization	(497,812)		(428,540)
Total property and equipment, net	$	211,161	$	176,446

Borrowings

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowings

The Company maintains various funding facilities and other non-funding debt as shown in the tables below. Interest rates typically have two main components – a base rate (most commonly LIBOR or SOFR, some have a floor) plus a spread. The commitment fee charged by lenders for each of the facilities is an annual fee and is calculated based on the committed line amount multiplied by a negotiated rate. The fee rate ranges from 0% to 0.50% among the facilities except for the Senior Notes, which have no commitment fee. The Company is required to maintain certain covenants, including minimum tangible net worth, minimum liquidity, maximum total debt or liabilities to net worth ratio, pretax net income requirements, and other customary debt covenants, as defined in the agreements. The Company was in compliance with all covenants as of December 31, 2020 and December 31, 2019.

The amount owed and outstanding on the Company’s loan funding facilities fluctuates greatly based on its origination volume, the amount of time it takes the Company to sell the loans it originates, and the Company’s ability to use the cash to self-fund loans. In addition to self-funding, the Company may from time to time use surplus cash to “buy-down” the effective interest rate of certain loan funding facilities or to self-fund a portion of our loan originations. As of December 31, 2020,

$3,047,797 of the Company’s cash was used to buy-down our funding facilities and self-fund, $400,000 of which are buy-down funds that are included in cash on the Consolidated Balance Sheets and $2,647,797 of which is discretionary self-funding that reduces cash on the Consolidated Balance Sheets. The Company has the right to withdraw the $400,000 at any time, unless a margin call has been made or a default has occurred under the relevant facilities. The Company has $2,647,797 of discretionary self-funded loans, of which a portion can be transferred to a warehouse line or the early buy out line, provided that such loans meet the eligibility criteria to be placed on such lines. The remaining portion will be funded in normal course over a short period of time, generally less than one month. A large unanticipated margin call could also have a material adverse effect on the Company’s liquidity. Furthermore, refer to Note 3, Mortgage Servicing Rights for additional information regarding the MSRs financing liability with the MSRs sold during the third quarter of 2019 and fourth quarter of 2020.

The terms of the Senior Notes restrict our ability and the ability of our subsidiary guarantors among other things to: (1) incur additional debt or issue preferred stock; (2) pay dividends or make distributions in respect of capital stock; (3) purchase or redeem capital stock; (4) make investments or other restricted payments; (5) sell assets; (6) enter into transactions with affiliates; (7) effect a consolidation or merger, taken as a whole; (8) designate our subsidiaries as unrestricted subsidiaries, unless certain conditions are met, as defined in the agreements; (9) merge, consolidate or sell, transfer or lease assets, and; (10) create liens on assets. Items (1) through (9) apply to the 2025 and 2028 Senior Notes. Items (9) and (10) apply to the 2029 and 2031 Senior Notes, which have investment grade covenants.

Funding Facilities


Facility Type	Collateral	Maturity	Line Amount		Committed Line Amount		Outstanding Balance December 31, 2020		Outstanding Balance December 31, 2019
MRA funding:
1) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	10/22/2021	$	2,000,000	$	100,000	$	999,752	$	835,302
2) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	12/2/2021	1,500,000		500,000		1,320,484		1,390,839
3) Master Repurchase Agreement(1)(7)	Mortgage loans held for sale(6)	4/22/2022	3,250,000		1,000,000		2,407,156		2,622,070
4) Master Repurchase Agreement(2)(7)	Mortgage loans held for sale(6)	10/26/2021	2,000,000		1,700,000		1,953,949		875,617
5) Master Repurchase Agreement(3)(7)	Mortgage loans held for sale(6)	4/22/2021	2,500,000		500,000		2,004,707		2,063,099
6) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/5/2022	2,000,000		1,000,000		1,780,902		965,903
7) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/16/2021	1,750,000		1,137,500		1,343,130		773,822
8) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	6/12/2021	400,000		—		219,786		—
9) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/24/2021	1,500,000		750,000		983,126		—
10) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	10/9/2021	500,000		—		480,544		—
11) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	12/17/2021	1,000,000		500,000		765,432		—
			$	18,400,000	$	7,187,500	$	14,258,968	$	9,526,652
Early Funding:
12) Early Funding Facility(4)(7)	Mortgage loans held for sale(6)	(4)	4,000,000		—		2,514,193		2,022,179
13) Early Funding Facility(5)(7)	Mortgage loans held for sale(6)	(5)	3,000,000		—		969,412		493,047
			7,000,000		—		3,483,605		2,515,226
Total			$	25,400,000	$	7,187,500	$	17,742,573	$	12,041,878

(1) This facility had an overall line size of $3,250,000 with $1,000,000 committed until December 31, 2020. Subsequent to December 31, 2020, the facility decreased to $2,750,000 with $1,000,000 committed.

(2) This facility has a 12-month initial term, which can be extended for 3-months at each subsequent 3-month anniversary from the initial start date. Subsequent to December 31, 2020 this facility was extended 3-months and is now maturing on January 26, 2022.

(3) Subsequent to December 31, 2020, this facility was amended to increase the total facility size to $3,000,000 with $500,000 committed.

(4) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.

(5) This facility will have an overall line size of $3,000,000, which will be reviewed every 90 days. This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.

(6) The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value as the first priority security interest.

(7) The interest rates charged by lenders of the funding facilities ranged from 0.40% to 2.30%, plus the applicable base rate, for the twelve months ended December 31, 2020 and for the year ended December 31, 2019.

Other Financing Facilities


Facility Type	Collateral	Maturity	Line Amount		Committed Line Amount		Outstanding Balance December 31, 2020		Outstanding Balance December 31, 2019
Line of Credit Financing Facilities
1) Unsecured line of credit(1)(6)	—	7/27/2025	$	2,000,000	$	—	$	—	$	—
2) Unsecured line of credit(2)(6)	—	(2)	—		—		—		90,000
3) Unsecured line of credit(3)	—	7/31/2025	100,000		—		—		—
4) Revolving credit facility	—	8/10/2023	1,000,000		1,000,000		300,000		—
5) MSR line of credit(7)	MSRs	10/22/2021	200,000		—		—		—
6) MSR line of credit(4)(7)	MSRs	(4)	200,000		200,000		75,000		75,000
			$	3,500,000	$	1,200,000	$	375,000	$	165,000
Early Buyout Financing Facility
7) Early buy out facility(5)(8)	Loans/ Advances	6/9/2021	$	500,000	$	—	$	330,266	$	196,247

(1) This uncommitted, unsecured Revolving Loan Agreement is with RHI.

(2) Effective August 10, 2020, this facility was terminated at the borrower's request and a portion of the commitment was rolled in the new revolving credit facility.

(3) Refer to Note 7, Transactions with Related Parties for additional details regarding this unsecured line of credit

(4) This MSR facility can be drawn upon for corporate purposes and is collateralized by GSE MSRs within our servicing portfolio. This facility has a 5-year total commitment comprised of a 3-year revolving period that expires on April 30, 2022 followed by a 2-year amortization period that expires on April 30, 2024.

(5) Subsequent to December 31, 2020, this facility was increased to a total facility size of $2,600,000 and the maturity was extended through March 13, 2023.

(6) The interest rates charged by lenders for the unsecured lines of credit financing facilities ranged from one-month LIBOR+1.25% to one-month LIBOR+2.00% for the twelve months ended December 31, 2020 and for the year ended December 31, 2019.

(7) The interest rates charged by lenders for the MSR line of credit financing facility ranged from one-month LIBOR+2.25% to one-month LIBOR+4.00% for the twelve months ended December 31, 2020 and the year ended December 31, 2019.

(8) The interest rate charged by lender for the Early buyout financing facility was one-month LIBOR+1.75% for the twelve months ended December 31, 2020 and for the year ended December 31, 2019.

Unsecured Senior Notes


Facility Type	Maturity	Interest Rate		Outstanding Balance December 31, 2020			Outstanding Balance December 31, 2019
Unsecured Senior Notes(1)	5/1/2025	5.750	%	$	—		$	1,250,000
Unsecured Senior Notes(2)	1/15/2028	5.250	%	1,010,000			1,010,000
Unsecured Senior Notes(3)	3/1/2029	3.625	%	750,000			—
Unsecured Senior Notes(4)	3/1/2031	3.875	%	1,250,000			—
Total Senior Notes				$	3,010,000		$	2,260,000

Weighted Average Interest Rate				4.27		%	5.53		%

(1) The 2025 Senior Notes were unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs are presented net against the Senior Notes reducing the $1,250,000 carrying amount on the balance sheet by $8,988 on December 31, 2019. Effective October 14, 2020 the entire outstanding principal amount of this note was redeemed at a price equal to 102.875% of the principal amount plus accrued and unpaid interest for a total of $1,318,481.

(2) The 2028 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,010,000 carrying amount on the balance sheet by $8,197 and $6,817 as of December 31, 2020, respectively and $9,421 and $7,800 as of December 31, 2019, respectively. At any time and from time to time on or after January 15, 2023, the Company may redeem the notes at its option, in whole or in part, upon not less than 30 nor more than 60 days' notice, at the redemption prices equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, to but excluding the redemption date, in cash, if redeemed during the twelve-month period beginning on January 15 in the years indicated below:


Year	Percentage
2023	102.625	%
2024	101.750	%
2025	100.875	%
2026 and thereafter	100.000	%

(3) The 2029 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $750,000 carrying amount on the balance sheet by $8,053 as of December 31, 2020. Prior to March 1, 2024 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2024, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter.


Year	Percentage
2024	101.813	%
2025	100.906	%
2026 and thereafter	100.000	%

(4) The 2031 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,250,000

carrying amount on the balance sheet by $13,887 as of December 31, 2020. Prior to March 1, 2026 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2026, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter.


Year	Percentage
2026	101.938	%
2027	101.292	%
2028	100.646	%
2029 and thereafter	100.000	%

The following table outlines the contractual maturities (by unpaid principal balance) of unsecured senior notes (excluding interest and debt discount) for the years ended.


Year	Amount
2021	$	—
2022	—
2023	—
2024	—
2025	—
Thereafter	3,010,000
Total	$	3,010,000

Refer to Note 2, Fair Value Measurements for information pertaining to the fair value of the Company’s debt as of December 31, 2020 and December 31, 2019.

Transactions with Related Parties

12 Months Ended

Dec. 31, 2020

Transactions with Related Parties

The Company has entered into various transactions and agreements with RHI, its subsidiaries, certain other affiliates and related parties (collectively, “Related Parties”). These transactions include providing financing and services as well as obtaining financing and services from these Related Parties.

Financing Arrangements

On January 6, 2017, the Company entered into a $55,983 promissory note with one of the Company’s shareholders (“Shareholder’s Note”). In 2019, the Shareholder’s Note was amended and the accrued interest balance of $1,474 was added to the principal outstanding, increasing the total principal outstanding to $57,457, due on December 31, 2020. In March 2020, the full amount of this note was settled in cash and is no longer outstanding.

As of December 31, 2019, there were other promissory notes outstanding with Related Parties. These notes were settled in full as of December 31, 2020.

On June 9, 2017, Rocket Mortgage and RHI entered into a $300,000 uncommitted and unsecured line of credit (“RHI Line of Credit”). On December 24, 2019 the Company amended the RHI Line of Credit and increased the borrowing capacity to $1,000,000, due on November 1, 2024. On July 24, 2020, the Company amended the RHI Line of Credit and increased the borrowing capacity to $2,000,000, due on July 27, 2025. Borrowings under the line of credit bear interest at a rate per annum

of one month LIBOR plus 1.25%. The line of credit is uncommitted and RHI has sole discretion over advances. The RHI Line of Credit also contains negative covenants which restrict the ability of the Company to incur debt and create liens on certain assets. It also requires Rocket Mortgage to maintain a quarterly consolidated net income before taxes if adjusted tangible net worth meets certain requirements. As of December 31, 2020 and December 31, 2019, there were no outstanding amounts due to RHI pursuant to the RHI Line of Credit.

RHI and Amrock Title Insurance Company (“ATI”) are parties to a surplus debenture, effective as of December 28, 2015, and as further amended and restated on December 31, 2019 (the “RHI/ATI Debenture”), pursuant to which ATI is indebted to RHI for an aggregate principal amount of $21,500. The RHI/ATI Debenture matures on December 31, 2030. Interest under the RHI/ATI Debenture accrues at an annual rate of 8%. Principal and interest under the RHI/ATI Debenture are due and payable quarterly, in each case subject to ATI achieving a certain amount of surplus and payments of all interest before principal payments begin. Any unpaid amounts of principal and interest shall be due and payable upon the maturity of the RHI/ATI Debenture.

On January 10, 2019, RockLoans Opportunities LLC and RHI Opportunities, a subsidiary of RHI, entered into a $10,000 agreement for a perpetual uncommitted, unsecured line of credit (“RHIO Line of Credit”), which provides for financing from RHI Opportunities to the Company. Borrowings under the line of credit bear interest at a rate per annum of 5.00%. The line of credit is uncommitted and RHI has sole discretion over advances. The principal amount of all borrowings is payable in full on demand by RHI Opportunities. The RHIO Line of Credit also contains negative covenants that restrict the ability of RockLoans Opportunities to incur debt in excess of $500 and creates liens on certain assets other than liens securing permitted debt. As of December 31, 2019 there was $10,000 outstanding pursuant to the RHIO Line of Credit. The RHIO Line of Credit was terminated effective October 24, 2020 and there were no amounts outstanding as of termination.

On June 23, 2020, Rock Central LLC and RHI Opportunities, a subsidiary of RHI, entered into an additional agreement for an uncommitted, unsecured revolving line of credit ("RHIO 2nd Line of Credit"), which provides for financing from RHI Opportunities to the Company of up to $50,000. The line of credit matures on June 23, 2025. Borrowings under the line of credit bear interest at a rate per annum of one month LIBOR plus 1.25%. The negative covenants of the line of credit restrict the ability of the Company to incur debt and create liens on certain assets. The line of credit also contains customary events of default. The RHIO 2nd Line of Credit was terminated effective December 31, 2020 and there were no amounts outstanding as of the termination.

On July 31, 2020, Holdings and RHI entered into an agreement for an uncommitted, unsecured revolving line of credit ("RHI 2nd Line of Credit’’), which will provide for financing from RHI to the Company of up to $100,000. The line of credit will mature on July 31, 2025. Borrowings under the line of credit will bear interest at a rate per annum of one month LIBOR plus 1.25%. The negative covenants of the line of credit restrict the ability of the Company to incur debt and create liens on certain assets. The line of credit also contains customary events of default. As of December 31, 2020 there were no amounts outstanding pursuant to the RHI 2nd line of credit.

The amounts receivable from and payable to Related Parties consisted of the following as of:


	December 31, 2020				December 31, 2019
	Principal		Interest Rate		Principal		Interest Rate
Included in Notes receivable and due from affiliates on the Consolidated Balance Sheets
Promissory Note—Shareholders Note(1)	$	—	—		$	57,457	2.38	%
Affiliated receivables and other notes	22,172		—		32,480		—
Notes receivable and due from affiliates	$	22,172			$	89,937
Included in Notes payable and due to affiliates on the Consolidated Balance Sheets
RHIO Line of Credit	$	—	—		$	10,000	5.00	%
RHI/ATI Debenture	21,500		8.00	%	21,500		8.00	%
Affiliated payables	52,396		—		30,725		—
Notes payable and due to affiliates	$	73,896			$	62,225

(1) Interest incurred and accrued is based on a margin over 30-day LIBOR as of the date of advance.

Services, Products and Other Transactions

We have entered into transactions and agreements to provide certain services to RHI, its subsidiaries and certain other affiliates of our majority shareholder. We recognized revenue of $14,081, $12,405 and $6,039 for the years ended December 31, 2020, 2019 and 2018, respectively, for the performance of these services, which was included in other income. Related Party receivables were $22,172 and $32,480 as of December 31, 2020 and December 31, 2019, respectively. We have also entered into transactions and agreements to purchase certain services, products and other transactions from certain subsidiaries of RHI and affiliates of our majority shareholder. We incurred expenses of $58,306, $48,681 and $48,583 for the years ended December 31, 2020, 2019 and 2018, respectively, for these products, services and other transactions, which are included in general and administrative expenses. We also incurred expenses of $21,456, $19,071 and $21,900 for the years ended December 31, 2020, 2019 and 2018, respectively, for parking spaces we rent from related parties, or an agent of the related party, which are included in general and administrative expenses. Related party payables, which is recorded in notes payable and due to affiliates, were $52,396 and $30,725 as of December 31, 2020 and December 31, 2019, respectively.

The Company has also entered into a Tax receivable agreement liability of $550,282 as of December 31, 2020, with RHI and our Chairman as described further in Note 1, Business, Basis of Presentation and Accounting Policies, Note 11, Income Taxes, and Note 13, Commitments, Contingencies, and Guarantees.

Cleveland Cavaliers Naming Rights Contract

Refer to Note 1., Business, Basis of Presentation and Accounting Policies, within the Marketing and advertising expenses section on the Consolidated Statements of Income and Comprehensive Income for further information regarding the Rocket Mortgage Field House.

Lease Transactions with Related Parties

The Company is a party to lease agreements for certain offices, including our headquarters in Detroit, with various affiliates of Bedrock Management Services LLC (“Bedrock”), a related party, and other related parties of the Company. For the years ended December 31, 2020, 2019 and 2018, we incurred expenses totaling $70,157, $69,582 and $66,218, respectively, for these properties.

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

The Company enters into lease arrangements with independent third parties as well as with other related parties. Upon adoption of ASU No. 2016-02, Leases (Topic 842) in 2019, the Company elected not to reassess its previous evaluation of the lease term, the exercise of any purchase options and impairment of ROU assets for transitioned leases.

The Company’s operating leases, in which the Company is the lessee, include real estate, such as office facilities, and various types of equipment, such as printers, copiers, mail equipment, and vending machines. The Company determines whether an arrangement is or contains a lease at inception. Leases are classified as either finance or operating at the commencement date of the lease, with classification affecting the pattern of expense recognition in the Consolidated Statements of Income and Comprehensive Income. The Company currently does not have any finance leases, and the vast majority of the Company’s operating lease expense is paid to a related party. See below for more information on related party lease transactions.

For in-lease arrangements where the Company is the lessee, the Company does not separate non-lease components of a contract from the lease component to which they relate. Per the Company’s election, leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. The Company’s leases generally have remaining lease terms of one year to ten years. Some leases include options to extend or terminate the lease at the Company’s sole discretion on a lease-by-lease basis, and the Company evaluates whether those options are “reasonably certain” of being exercised considering contractual and economic-based factors. The Company used its periodic incremental borrowing rate, based on the information available at commencement date, to determine the present value of future lease payments.

The components of lease expense for the year ended:


	December 31, 2020		December 31, 2019
Operating Lease Cost:
Fixed lease expense(1)	$	69,200	$	64,837
Variable lease expense (2)	13,863		13,449
Total operating lease cost	$	83,063	$	78,286

(1) Short term lease expense and month to month lease expense are included within this amount, and are immaterial.

(2) Variable lease payments are expensed in the period in which the obligation for those payments is incurred. These variable lease costs are payments that vary in amount beyond commencement date, for reasons other than passage of time. The Company’s variable payments mainly include common area maintenance and building utilities fees.

Supplemental cash flow information related to leases for the year ended:


	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	70,717	$	67,769
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	16,743	$	22,341

Supplemental balance sheet information related to leases for the year ended:


	December 31, 2020			December 31, 2019
Operating Leases:
Total lease right-of-use assets	$	238,546		$	278,921
Total lease liabilities	$	272,274		$	314,353
Weighted average lease term	6.4 years			6.7 years
Weighted average discount rate	4.24		%	4.30		%

Maturities of lease liabilities for the year ended:


	December 31, 2020
Operating Leases:
2021	$	65,563
2022	58,136
2023	36,360
2024	31,080
2025	29,865
Thereafter	86,439
Total lease payments	$	307,443
Less imputed interest	35,169
Total	$	272,274

When applying the requirements of Topic 842, the Company made assumptions about the determination of whether a contract contains a lease and the determination of the discount rate for the lease.

Refer to Note 7, Transactions with Related Parties for information regarding lease transaction expenses with related parties.

Lessor

While the Company is the sublessor in certain leasing arrangements, the majority of such lease arrangements are intercompany and eliminated in consolidation. Additionally, the accounting guidance for lessors is largely unchanged, therefore, the adoption of ASC 842 did not have a material impact on the Company’s consolidated financial statements.

Other Assets

12 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other assets consist of the following:


	December 31,		December 31,
	2020		2019
Mortgage production related receivables	$	307,282	$	157,288
Margin call receivable from counterparty	247,604		3,697
Prepaid expenses	98,529		62,229
Disbursement funds advanced	80,877		56,721
Non-production-related receivables	76,595		37,416
Goodwill and other intangible assets	47,230		40,261
Ginnie Mae buyouts	40,681		78,174
Other real estate owned	1,131		1,619
Other	41,548		64,182
Total Other assets	$	941,477	$	501,587

Team Member Benefit Plan	12 Months Ended
Team Member Benefit Plan	Dec. 31, 2020
Retirement Benefits [Abstract]
Team Member Benefit Plan	Team Member Benefit PlanThe Company maintains a defined contribution 401(k) plan which is sponsored by RHI, covering substantially all full-time and part-time team members of the Company. Team members can make elective contributions to the plan. The Company makes discretionary matching contributions of 50% of team members’ contributions to the plan up to an annual maximum of approximately $2.5 per team member. The Company’s contributions to the plan, net of team member forfeitures, for the years ended December 31, 2020, 2019, and 2018 amounted to $47,072, $35,556, and $27,955, respectively, and are included in Salaries, commissions and team member benefits in the Consolidated Statement of Income.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income (loss) before income taxes and non-controlling interest consists of the following:


	Year Ended December 31,
	2020		2019		2018
U.S.	$	9,544,721	$	912,738	$	619,486
Canada	(13,064)		(8,298)		(1,382)
Total income before income taxes and non-controlling interest	$	9,531,657	$	904,440	$	618,104

The provision for (benefit from) income taxes consists of the following:


	Year Ended December 31,
	2020		2019		2018
Current
U.S. Federal	$	38,000	$	1,747	$	1,005
State and local	27,971		4,822		(263)
Canada	(120)		57		71
Total Current	$	65,851	$	6,626	$	813

Deferred
U.S. Federal	$	45,713	$	(468)	$	(402)
State and local	20,817		1,152		2,833
Total Deferred	$	66,530	$	684	$	2,431
Total provision for income taxes	$	132,381	$	7,310	$	3,244

The reconciliation of the U.S. Federal statutory corporate income tax rate to the provision for income taxes consists of the following:


	Year Ended December 31,
	2020		2019		2018
U.S. Federal statutory tax rate	21.00	%	21.00	%	21.00	%
Income attributable to non-controlling interest	(20.27)	%	(21.05)	%	(20.95)	%
Other	0.66	%	0.86	%	0.47	%
Effective tax rate	1.39	%	0.81	%	0.52	%

The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. Prior to the IPO, the Company was owned by RHI which has elected S corporation status. When owned by RHI, Quicken Loans, Amrock and several other wholly-owned corporations had elected to be treated as qualified subchapter S subsidiaries. The shareholders of RHI, as shareholders of an S corporation, are responsible for the federal income tax liabilities. A provision for state income taxes is required for certain jurisdictions that tax S corporations and their qualified Subchapter S subsidiaries and for states where the Company is taxed as a C Corporation.

In a series of transactions occurring along with the IPO, subsidiaries of the Company were contributed to Holdings by RHI. Several of these subsidiaries, such as Quicken Loans, Amrock and other subsidiaries, are no longer qualified Subchapter S corporations and are single member LLC entities owned by Holdings. As single member LLCs of Holdings, all taxable income or loss generated by these subsidiaries will pass through and be included in the income or loss of Holdings. Other contributed subsidiaries of Holdings, such as Amrock Title Insurance Co., LMB Mortgage Services and others, are treated as C Corporations and will separately file and pay taxes apart from Holdings in various jurisdictions including U.S. federal, state, local and Canada.

As part of the IPO, Rocket Companies acquired a portion of the units of Holdings, which is treated as a partnership for U.S. federal tax purposes and in most applicable jurisdictions for state and local income tax purposes. The remaining portion of Holdings is owned by RHI and our Chairman ("LLC Members"). As a partnership, Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Holdings after Rocket Companies acquisition of its portion of Holdings is passed through and included in the taxable income or loss of its members, including Rocket Companies, in accordance with the terms of the Holdings Operating Agreement. Rocket Companies is a C Corporation and is subject to U.S. federal, state, and local income taxes with respect to its allocable share of any taxable income of Holdings.

Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. The Company’s deferred tax assets (liabilities) arise from the following components of temporary differences and carryforwards:


	December 31,
	2020		2019
Investment in partnership	$	531,020	$	—
Mortgage Servicing Rights	(4,346)		(11,637)
Interest Rate Lock Commitments (IRLCs)	(2,590)		(2,145)
Accruals, net operating loss carryforwards, and other, net	9,952		1,745
Valuation allowance	(24,452)		—
Net deferred tax assets (liabilities)	$	509,584	$	(12,037)

The deferred tax balance in the Consolidated Balance Sheets consists of the following:


	December 31,
	2020		2019
Deferred tax asset, net of valuation allowance	$	519,933	$	—
Deferred tax liability (included in Other liabilities)	(10,349)		(12,037)
Net deferred tax asset (liability)	$	509,584	$	(12,037)

As of December 31, 2020, the Company has a deferred tax asset before any valuation allowance of $544,385 and a deferred tax liability of $10,349. This deferred tax asset relates primarily to the difference in the tax and book basis of Rocket Companies’ investment in Holdings. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. After considering all those factors, management has recorded $24,452 of a valuation allowance for certain deferred tax assets the Company has determined are not more likely than not to be realized. The initial deferred tax asset for the investment in partnership was recorded against Additional Paid-in Capital and included within Effect of reorganization transactions in the Consolidated Statements of Changes in Equity.

Of the $10,805 deferred tax assets related to the net operating loss carryforwards at December 31, 2020, $8,269 will expire between 2037 and 2040 and $2,536 has no expiration.

The Company recognizes uncertain income tax positions when it is not more likely than not a tax position will be sustained upon examination. As of December 31, 2020 and 2019, the Company has not recognized any uncertain tax positions. The Company accrues interest and penalties related to uncertain tax positions as a component of the income tax provision. No interest or penalties were recognized in income tax expense and no accrued interest or penalty was recorded on the Consolidated Balance Sheets as of December 31, 2020 and 2019. Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2015 or prior.

Tax Receivable Agreement

The Company expects to obtain an increase in its share of the tax basis in the net assets of Holdings when Holdings Units are redeemed from or exchanged by the LLC Members. The Company intends to treat any redemptions and exchanges of Holdings Units as direct purchases of Holdings Units for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

In connection with the IPO, the Company entered into the Tax Receivable Agreement with the LLC Members. The Tax Receivable Agreement provides for the payment by Rocket Companies of 90% of the amount of any cash tax benefits that Rocket Companies actually realizes, or in some cases is deemed to realize, as a result of (i) certain increases in Rocket Companies allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with

the corresponding shares of our Class D common stock or Class C common stock) from the LLC Members (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by the LLC Members (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. The Company expects to benefit from the remaining 10% of any cash savings, if any, that it realizes. Refer to Note 1, Business, Basis of Presentation and Accounting Policies, Note 7, Transactions with Related Parties, and Note 13, Commitments, Contingencies, and Guarantees for additional information.

During the year ended December 31, 2020, the Company acquired an aggregate of 115,000,000 Holdings Units valued at $2,070,000 in connection with the exchange of those Holdings Units by the LLC Members, which resulted in an increase in the tax basis of the assets of Holdings and would be subject to the provisions of the Tax Receivable Agreement. As of December 31, 2020, the Company recognized a liability of $550,282 under the Tax Receivable Agreement after concluding that is the estimate of such TRA payments that would be paid based on its estimates of future taxable income. No payments were made to the LLC Members pursuant to the Tax Receivable Agreement during the year ended December 31, 2020. The initial Tax receivable agreement liability was recorded against Additional Paid-in Capital and included within Effect of reorganization transactions in the Consolidated Statements of Changes in Equity.

The amounts payable under the Tax Receivable Agreement will vary depending upon a number of factors, including the amount, character, and timing of the taxable income of Rocket Companies in the future. Any such changes in these factors or changes in the Company’s determination of the need for a valuation allowance related to the tax benefits acquired under the Tax Receivable Agreement could adjust the Tax receivable agreement liability recognized and recorded within earnings in future periods.

Tax Distributions

The holders of Holdings’ Units, including Rocket Companies Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Holdings. The Holdings Operating Agreement provides for pro rata cash distributions (“tax distributions”) to the holders of the Holdings Units in an amount generally calculated to provide each holder of Holdings Units with sufficient cash to cover its tax liability in respect of the Holdings Units. In general, these tax distributions are computed based on Holdings’ estimated taxable income, multiplied by an assumed tax rate as set forth in the Holdings Operating Agreement.

For the year ended December 31, 2020, Holdings paid tax distributions totaling $1,375,181 to holders of Holdings Units other than Rocket Companies, and distributions of $195,591 were made subsequent to year end.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company uses forward commitments in hedging the interest rate risk exposure on its fixed and adjustable rate commitments. Utilization of forward commitments involves some degree of basis risk. Basis risk is defined as the risk that the hedged instrument’s price does not move in parallel with the increase or decrease in the market price of the hedged financial instrument. The Company calculates an expected hedge ratio to mitigate a portion of this risk. The Company’s derivative instruments are not designated as accounting hedging instruments, and therefore, changes in fair value are recorded in current period earnings. Hedging gains and losses are included in Gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income.

Net hedging losses and gains were as follows:


	Year ended December 31,
	2020 (1)		2019		2018
Hedging (losses) gains	$	(2,832,741)	$	(554,995)	$	208,773

(1) Includes the change in fair value related to derivatives economically hedging MSRs identified for sale.

Refer to Note 2, Fair Value Measurements, for additional information on the fair value of derivative financial instruments.

Notional and Fair Value

The notional and fair values of derivative financial instruments not designated as hedging instruments were as follows:


	Notional Value		Derivative Asset		Derivative Liability
Balance at December 31, 2020:
IRLCs, net of loan funding probability(1)	$	40,560,544	$	1,897,194	$	—
Forward commitments(2)	$	59,041,900	$	20,584	$	506,071
Balance at December 31, 2019:
IRLCs, net of loan funding probability(1)	$	15,439,960	$	508,135	$	—
Forward commitments(2)	$	26,637,275	$	3,838	$	43,794

(1) IRLCs are also discussed in Note 13, Commitments, Contingencies, and Guarantees.

(2) Includes the fair value and net notional value related to derivatives economically hedging MSRs identified for sale.

Counterparty agreements for forward commitments contain master netting agreements. The table below presents the gross amounts of recognized assets and liabilities subject to master netting agreements. The Company had $247,604 and $3,697 of cash pledged to counterparties related to these forward commitments at December 31, 2020 and December 31, 2019, respectively, classified in Other assets in the Consolidated Balance Sheets. As of December 31, 2020 and December 31, 2019, there was no cash on our Consolidated Balance Sheets from the respective counterparties. Margins received by the Company are classified in Other liabilities in the Consolidated Balance Sheets.


	Gross Amount of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets
Offsetting of Derivative Assets
Balance at December 31, 2020:
Forward commitments	$	35,746	$	(15,162)	$	20,584
Balance at December 31, 2019:
Forward commitments	$	6,690	$	(2,852)	$	3,838
Offsetting of Derivative Liabilities
Balance at December 31, 2020:
Forward commitments	$	(715,671)	$	209,600	$	(506,071)
Balance at December 31, 2019:
Forward commitments	$	(89,389)	$	45,595	$	(43,794)

Counterparty Credit Risk

Credit risk is defined as the possibility that a loss may occur from the failure of another party to perform in accordance with the terms of the contract, which exceeds the value of existing collateral, if any. The Company attempts to limit its credit risk by dealing with creditworthy counterparties and obtaining collateral where appropriate.

The Company is exposed to credit loss in the event of contractual nonperformance by its trading counterparties and counterparties to its various over-the-counter derivative financial instruments noted in the above Notional and Fair Value discussion. The Company manages this credit risk by selecting only counterparties that it believes to be financially strong, spreading the credit risk among many such counterparties, placing contractual limits on the amount of unsecured credit extended to any single counterparty, and entering into netting agreements with the counterparties as appropriate.

Certain counterparties have master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. Derivative assets in the Consolidated Balance Sheets represent derivative contracts in a gain position, net of loss positions with the same counterparty and, therefore, also represent the Company’s maximum counterparty credit risk. The Company incurred no credit losses due to nonperformance of any of its counterparties during the year ended December 31, 2020 and 2019.

Commitments, Contingencies, and Guarantees

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, and Guarantees

Interest Rate Lock Commitments

IRLCs are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each client’s creditworthiness on a case-by-case basis.

The number of days from the date of the IRLC to expiration of fixed and variable rate lock commitments outstanding at December 31, 2020 and December 31, 2019 was approximately 43 and 44 days on average, respectively.

The UPB of IRLCs was as follows:


	December 31, 2020				December 31, 2019
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
IRLCs	$	53,736,717	$	1,065,936	$	20,577,282	$	974,693

Commitments to Sell Mortgage Loans

In the ordinary course of business, the Company enters into contracts to sell existing mortgage loans held for sale into the secondary market at specified future dates. The amount of commitments to sell existing loans at December 31, 2020 and December 31, 2019 was $3,139,816 and $2,859,710, respectively.

Commitments to Sell Loans with Servicing Released

In the ordinary course of business, the Company enters into contracts to sell the MSRs of certain newly originated loans on a servicing released basis. In the event that a forward commitment is not filled and there has been an unfavorable market shift from the date of commitment to the date of settlement, the Company is contractually obligated to pay a pair-off fee on the undelivered balance. There were $280,502 and $78,446 of loans committed to be sold servicing released at December 31, 2020 and December 31, 2019, respectively.

Investor Reserves

The following presents the activity in the investor reserves:


	Year Ended December 31,
	2020		2019		2018
Balance at beginning of period	$	54,387	$	56,943	$	50,130
Provision for (benefit from) investor reserves	36,814		(1,872)		7,458
Premium recapture and indemnification losses paid	(4,010)		(684)		(645)
Balance at end of period	$	87,191	$	54,387	$	56,943

The maximum exposure under the Company’s representations and warranties would be the outstanding principal balance and any premium received on all loans ever sold by the Company, less (i) loans that have already been paid in full by the mortgagee, (ii) loans that have defaulted without a breach of representations and warranties, (iii) loans that have been indemnified via settlement or make-whole, or (iv) loans that have been repurchased. Additionally, the Company may receive relief of certain representation and warranty obligations on loans sold to Fannie Mae or Freddie Mac on or after January 1, 2013 if Fannie Mae or Freddie Mac satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to Fannie Mae or Freddie Mac.

Property Taxes, Insurance, and Principal and Interest Payable

As a service to its clients, the Company administers escrow deposits representing undisbursed amounts received for payment of property taxes, insurance and principal, and interest on mortgage loans held for sale. Cash held by the Company for property taxes and insurance was $3,551,400 and $2,617,016, and for principal and interest was $13,065,549 and $6,726,793 at December 31, 2020 and December 31, 2019, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. The Company remains contingently liable for the disposition of these deposits.

Guarantees

As of December 31, 2020 and December 31, 2019, the Company guaranteed the debt of a related party totaling $15,000, consisting of three separate guarantees of $5,000 each. As of December 31, 2020 and December 31, 2019, the Company did not record a liability on the Consolidated Balance Sheets for these guarantees because it was not probable that the Company would be required to make payments under these guarantees.

Trademark License

The Company has a perpetual trademark license agreement with a third-party entity. This agreement requires annual payments by the Company based upon the income from the sale of loans generated under the Quicken Loans brand. Total licensing fees incurred and paid were $7,500 for the years ended December 31, 2020 and 2019, respectively, which is the maximum amount allowable under the contract for the periods indicated and is classified in other expenses in the Consolidated Statements of Income and Comprehensive Income.

Tax Receivable Agreement

As indicated in Note 1, Business, Basis of Presentation and Accounting Policies, Note 7, Transactions with Related Parties, and Note 11, Income Taxes, in connection with the reorganization, we entered into a Tax Receivable Agreement with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. We will retain the benefit of the remaining 10% of these tax savings.

We anticipate funding payments under the Tax Receivable Agreement from cash flows from operations, available cash and available borrowings. As of December 31, 2020, we had accrued $550,282 as a Tax receivable agreement liability. As the Tax Receivable Agreement went into effect in August 2020, no amounts were due to RHI or our Chairman under the Tax Receivable Agreement as of December 31, 2019, and no amounts were paid during the year ended December 31, 2020. No payments are expected in the next twelve months.

In addition, the Tax Receivable Agreement provides that upon certain changes of control of the Company or a material breach of our obligations under the Tax Receivable Agreement, we are required to make a payment to RHI and our Chairman in an amount equal to the present value of future payments (calculated using a discount rate equal to the lesser of 6.50% or LIBOR plus 100 basis points, which may differ from our, or a potential acquirer’s, then-current cost of capital) under the Tax Receivable Agreement, which payment would be based on certain assumptions (described in assumptions (i) through (v) in the following paragraph), including those relating to our future taxable income. In these situations, our obligations under the Tax Receivable Agreement could have a substantial negative impact on our, or a potential acquirer’s, liquidity and could have the effect of delaying, deferring, modifying or preventing certain mergers, asset sales, other forms of business combinations or other changes of control. These provisions of the Tax Receivable Agreement may result in situations where RHI and our Chairman have interests that differ from or are in addition to those of our other stockholders. In addition, we could be required to make payments under the Tax Receivable Agreement that are substantial, significantly in advance of any potential actual realization of such further tax benefits, and in excess of our, or a potential acquirer’s, actual cash savings in income tax.

Furthermore, Rocket Companies may elect to terminate the Tax Receivable Agreement early by making an immediate payment equal to the present value of the anticipated future cash tax savings (calculated using a discount rate equal to the lesser of 6.50% or LIBOR plus 100 basis points). In determining such anticipated future cash tax savings, the Tax Receivable Agreement includes several assumptions, including that (i) any Holdings Units that have not been exchanged are deemed exchanged for the market value of the shares of Class A common stock at the time of termination, (ii) Rocket Companies will have sufficient taxable income in each future taxable year to fully realize all potential tax savings, (iii) Rocket Companies

will have sufficient taxable income to fully utilize any remaining net operating losses subject to the Tax Receivable Agreement in the taxable year of the election or future taxable years, (iv) the tax rates for future years will be those specified in the law as in effect at the time of termination and (v) certain non-amortizable assets are deemed disposed of within specified time periods.

As a result of the change in control provisions and the early termination right, Rocket Companies could be required to make payments under the Tax Receivable Agreement that are greater than or less than the specified percentage of the actual cash tax savings that Rocket Companies realizes in respect of the tax attributes subject to the Tax Receivable Agreement (although any such overpayment would be taken into account in calculating future payments, if any, under the Tax Receivable Agreement) or that are prior to the actual realization, if any, of such future tax benefits. Also, the obligations of Rocket Companies would be automatically accelerated and be immediately due and payable in the event that Rocket Companies breaches any of its material obligations under the agreement and in certain events of bankruptcy or liquidation. In these situations, our obligations under the Tax Receivable Agreement could have a substantial negative impact on our liquidity.

Legal

Rocket Companies, among other things, engages in mortgage lending, title and settlement services, and other financial technology services. Rocket Companies operates in a highly regulated industry and is routinely subject to various legal and administrative proceedings concerning matters that arise in the normal and ordinary course of business, including inquiries, complaints, subpoenas, audits, examinations, investigations and potential enforcement actions from regulatory agencies and state attorney generals; state and federal lawsuits and putative class actions; and other litigation. Periodically, we assess our potential liabilities and contingencies in connection with outstanding legal and administrative proceedings utilizing the latest information available. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period. Rocket Companies accrues for losses when they are probable to occur and such losses are reasonably estimable. Legal costs are expensed as they are incurred.

In 2018 an initial judgment was entered against Quicken Loans and Amrock, formerly known as Title Source, Inc., for a certified class action lawsuit filed in the U.S. District Court of the Northern District of West Virginia. The lawsuit alleged that the defendants violated West Virginia state law by unconscionably inducing the plaintiffs (and a class of other West Virginians who received loans through Quicken Loans and appraisals through Amrock) into loans by including the borrower’s own estimated home values on appraisal order forms. The court of appeals reversed the district court’s summary judgment ruling on a separate breach-of-contract claim and remanded that claim for further proceedings. Quicken Loans and Amrock vehemently disagree with the court of appeals’ majority opinion and the companies intend to exercise their additional appellate rights. Quicken Loans and Amrock believe the resolution of this matter is not material to the consolidated financial statements.

Quicken Loans is also defending itself against four putative Telephone Consumer Protection Act (“TCPA”) class action lawsuits. Quicken Loans denies the allegations in these cases and intends to vigorously defend itself. Quicken Loans has filed, or intends to file, motions or other submissions in each of these matters advancing arguments which, if accepted by the courts, would result in a finding of no liability or would limit the matters to the plaintiffs' individual claims. Quicken Loans does not believe a loss is probable; therefore, no reserve has been recorded related to these matters. A range of possible loss cannot be estimated with any degree of reasonable certainty.

Amrock is currently involved in civil litigation related to a business dispute between Amrock and HouseCanary, Inc. (“HouseCanary”). The lawsuit was filed on April 12, 2016, by Amrock—Title Source, Inc. v. HouseCanary, Inc., No. 2016-CI-06300 (37th Civil District Court, San Antonio, Texas)—and included claims against HouseCanary for breach of contract and fraudulent inducement stemming from a contract between Amrock and HouseCanary whereby HouseCanary was obligated to provide Amrock with appraisal and valuation software and services. HouseCanary filed counterclaims against Amrock for, among other things, breach of contract, fraud, and misappropriation of trade secrets. On March 14, 2018, following trial of the claims in the lawsuit, a Bexar County, Texas, jury awarded $706,200 in favor of HouseCanary and rejected Amrock's claims against HouseCanary. The district court entered judgment in favor of HouseCanary and against Amrock for an aggregate of $739,600 (consisting of $235,400 in actual damages; $470,800 in punitive damages; $28,900 in prejudgment interest; and $4,500 in attorney fees). On appeal (No. 04-19-00044-CV, Fourth Court of Appeals, San Antonio, Texas), the court of appeals affirmed judgment of no-cause on Amrock’s claim for breach of contract, but reversed judgment

on HouseCanary’s misappropriation of trade secrets and fraud claims and remanded the case for a new trial on HouseCanary’s claims. In November 2020, HouseCanary filed a petition requesting the Supreme Court of Texas review the court of appeals’ decision. The outcome of this matter remains uncertain, and the ultimate resolution of the litigation may be several years in the future. If the case is tried again, Amrock intends to present new evidence, including evidence revealed by whistleblowers who came forward with evidence that undermined HouseCanary’s claims after the conclusion of the original trial, and to vigorously defend against this case and any subsequent actions.

Quicken Loans and Rocket Homes are defending themselves against a tagalong lawsuit filed by HouseCanary that also includes claims for misappropriation of trade secrets. That case is in its early stages and is stayed pending a resolution of Quicken Loans’ and Rocket Homes’ dispositive motion.

In addition to the matters described above, Rocket Companies are subject to other legal proceedings arising from the ordinary course of business. The ultimate outcome of these or other actions or proceedings, including any monetary awards against the companies, is uncertain and there can be no assurance as to the amount of any such potential awards.

As of December 31, 2020, there were no recorded reserves related to potential damages in connection with any of the above legal proceedings. The ultimate outcome of these or other actions or proceedings, including any monetary awards against one or more of the Rocket Companies, is uncertain and there can be no assurance as to the amount of any such potential awards. The Rocket Companies will incur defense costs and other expenses in connection with the lawsuits. Plus, if a judgment for money that exceeds specified thresholds is rendered against a Rocket Company or Rocket Companies and it or they fail to timely pay, discharge, bond or obtain a stay of execution of such judgment, it is possible that one or more of the Rocket Companies could be deemed in default of loan funding facilities and other agreements governing indebtedness. If the final resolution of any such litigation is unfavorable in one or more of these actions, it could have a material adverse effect on a Rocket Company’s or the Rocket Companies’ business, liquidity, financial condition, cash flows and results of operations.

Minimum Net Worth Requirements	12 Months Ended
Minimum Net Worth Requirements	Dec. 31, 2020
Mortgage Banking [Abstract]
Minimum Net Worth Requirements	Minimum Net Worth Requirements Certain secondary market investors and state regulators require the Company to maintain minimum net worth and capital requirements. To the extent that these requirements are not met, secondary market investors and/or the state regulators may utilize a range of remedies including sanctions, and/or suspension or termination of selling and servicing agreements, which may prohibit the Company from originating, securitizing or servicing these specific types of mortgage loans. Rocket Mortgage is subject to the following minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency (“FHFA”) for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. Furthermore, refer to Note 6, Borrowings for additional information regarding compliance with all covenant requirements. Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: • Base of $2,500 plus 25 basis points of outstanding UPB for total loans serviced. • Adjusted/Tangible Net Worth is defined as total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: • Base of $2,500 plus 35 basis points of the Ginnie Mae total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth is defined as total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. Effective for fiscal year 2020, under the Ginnie Mae MBS Guide, the issuers will no longer be permitted to include deferred tax assets when computing the minimum net worth requirements. Minimum Capital Ratio • For Fannie Mae, Freddie Mac and Ginnie Mae, the Company is also required to hold a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6%. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: • 3.5 basis points of total Agency servicing. • Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB. • Allowable assets for liquidity may include cash and cash equivalents (unrestricted) and available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations). The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1,000 or 10 basis points of our outstanding single-family MBS. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $2,175,968 and $1,179,928 as of December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020 and December 31, 2019, the Company was in compliance with this requirement.

- Definition

The entire disclosure for a mortgage banking entity related to capital requirements imposed by secondary market investors or state imposed regulatory mandates. The disclosure may include: (1) a description of the minimum net worth requirements related to (a) secondary market investors and (b) state-imposed regulatory mandates; (2) actual or possible material effects of noncompliance; (3) whether the entity is in compliance with the regulatory capital requirements, including (a) the entity's required and actual net worth amounts, (b) factors that may significantly affect adequacy of net worth such as potentially volatile components of capital, qualitative factors, or regulatory mandates; and (4) possible affects of noncompliance on amounts and disclosures in the notes to the financial statements. Servicers with net worth requirements from multiple sources may disclose (1) significant servicing covenants with secondary market investors with commonly defined servicing requirements (2) any other secondary market investor where violation of the requirement would have a significant adverse effect and (3) the most restrictive third party agreement, if not included above. The disclosure may also include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References + Details

Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segments

The Company’s Chief Executive Officer, who has been identified as its Chief Operating Decision Maker (“CODM”), has evaluated how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments—Direct to Consumer and Partner Network. The key factors used to identify these reportable segments are the organization and alignment of the Company’s internal operations and the nature of its marketing channels, which drive client acquisition into the mortgage platform. This determination reflects how its CODM monitors performance, allocates capital and makes strategic and operational decisions. The Company’s segments are described as follows:

Direct to Consumer

In the Direct to Consumer segment, clients have the ability to interact with the Rocket Mortgage app and/or with our Rocket Cloud Force, consisting of sales team members across our platform. The Company markets to potential clients in this segment through various performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. This also includes providing title insurance services, appraisals and settlement services to these clients, as part of the Company’s end-to-end mortgage origination experience it provides to its clients. Servicing activities are fully allocated to the Direct to Consumer segment as they are viewed as an extension of the client experience with the primary objective being to establish and maintain positive, regular touchpoints with our clients that position the Company to have high retention and recapture the clients’ next refinance or purchase mortgage transaction. These activities position the Company to be the natural choice for clients’ next refinance, purchase, personal loan, and auto transaction.

Revenues in the Direct to Consumer segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Loan servicing income consists of the contractual fees earned for servicing loans and other ancillary servicing fees, as well as changes in the fair value of MSRs due to changes in valuation assumptions and realization of cash flows.

Partner Network

The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO. Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker. Rocket Pro TPO works exclusively with mortgage brokers, community banks and credit unions. Rocket Pro TPO’s partners provide the face-to-face service their clients desire, while tapping into the expertise, technology and award-winning process of Rocket Mortgage.

Revenues in the Partner Network segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Additionally, there are no performance marketing costs associated with this segment.

Other Information About Our Segments

The Company measures the performance of the segments primarily on a contribution margin basis. The accounting policies applied by our segments are the same as those described in Note 1, Business, Basis of Presentation, and Accounting Policies and the decrease in MSRs due to valuation assumptions is consistent with the changes described in Note 3, Mortgage Servicing Rights. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses and other expenses, such as servicing costs and origination costs.

The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting.

The Company also reports an “all other” category that includes operations from Rocket Homes, Rock Connections, Core Digital Media, Rocket Loans, and includes professional service fee revenues from related parties. These operations are neither significant individually nor in aggregate and therefore do not constitute a reportable segment.

Key operating data for our business segments for the years ended:


Year Ended December 31, 2020	Direct to Consumer		Partner Network		Segments Total		All Other		Total
Revenues
Gain on sale	$	12,076,569	$	2,986,418	$	15,062,987	$	7,716	$	15,070,703
Interest income	215,171		111,876		327,047		2,546		329,593
Interest expense on funding facilities	(161,478)		(83,628)		(245,106)		(417)		(245,523)
Servicing fee income	1,070,463		—		1,070,463		3,792		1,074,255
Changes in fair value of MSRs	(2,294,240)		—		(2,294,240)		—		(2,294,240)
Other income	900,520		165,699		1,066,219		734,175		1,800,394
Total U.S. GAAP Revenue, net	$	11,807,005	$	3,180,365	$	14,987,370	$	747,812	$	15,735,182
Plus: Decrease in MSRs due to valuation assumptions	1,203,041		—		1,203,041		—		1,203,041
Adjusted revenue	$	13,010,046	$	3,180,365	$	16,190,411	$	747,812	$	16,938,223
Directly attributable expenses	3,722,640		537,543		4,260,183		412,351		4,672,534
Contribution margin	$	9,287,406	$	2,642,822	$	11,930,228	$	335,461	$	12,265,689


Year Ended December 31, 2019	Direct to Consumer		Partner Network		Segments Total		All Other		Total
Revenues
Gain on sale	$	4,318,930	$	538,421	$	4,857,351	$	53,956	$	4,911,307
Interest income	170,249		76,829		247,078		3,672		250,750
Interest expense on funding facilities	(91,650)		(41,359)		(133,009)		(1,907)		(134,916)
Servicing fee income	946,557		—		946,557		3,664		950,221
Changes in fair value of MSRs	(1,596,631)		—		(1,596,631)		—		(1,596,631)
Other income	443,290		22,423		465,713		270,876		736,589
Total U.S. GAAP Revenue, net	$	4,190,745	$	596,314	$	4,787,059	$	330,261	$	5,117,320
Plus: Decrease in MSRs due to valuation assumptions	789,901		—		789,901		—		789,901
Adjusted revenue	$	4,980,646	$	596,314	$	5,576,960	$	330,261	$	5,907,221
Directly attributable expenses	2,571,121		245,282		2,816,403		203,385		3,019,788
Contribution margin	$	2,409,525	$	351,032	$	2,760,557	$	126,876	$	2,887,433


Year Ended December 31, 2018	Direct to Consumer		Partner Network		Segments Total		All Other		Total
Revenues
Gain on sale	$	2,660,452	$	224,151	$	2,884,603	$	43,285	$	2,927,888
Interest income	155,305		44,024		199,329		1,597		200,926
Interest expense on funding facilities	(76,830)		(21,779)		(98,609)		(716)		(99,325)
Servicing fee income	818,085		—		818,085		2,285		820,370
Changes in fair value of MSRs	(228,723)		—		(228,723)		—		(228,723)
Other income	344,230		4,662		348,892		239,536		588,428
Total U.S. GAAP Revenue, net	$	3,672,519	$	251,058	$	3,923,577	$	285,987	$	4,209,564
Less: Increase in MSRs due to valuation assumptions	(326,637)		—		(326,637)		—		(326,637)
Adjusted revenue	$	3,345,882	$	251,058	$	3,596,940	$	285,987	$	3,882,927
Directly attributable expenses	2,209,487		125,232		2,334,719		203,088		2,537,807
Contribution margin	$	1,136,395	$	125,826	$	1,262,221	$	82,899	$	1,345,120

The following table represents a reconciliation of segment contribution margin to consolidated U.S. GAAP income before taxes for the year ended:


	Year Ended December 31,
	2020		2019		2018
Contribution margin, excluding change in MSRs due to valuation assumptions	$	12,265,689	$	2,887,433	$	1,345,120
(Decrease) increase in MSRs due to valuation assumptions	(1,203,041)		(789,901)		326,637
Contribution margin, including change in MSRs due to valuation assumptions	$	11,062,648	$	2,097,532	$	1,671,757
Less expenses not allocated to segments:
Salaries, commissions and team member benefits	815,940		601,174		528,328
General and administrative expenses	443,085		361,822		311,646
Depreciation and amortization	74,316		74,952		76,917
Interest and amortization expense on non-funding debt	186,301		136,853		130,022
Other expenses	11,349		18,291		6,740
Income before income taxes	$	9,531,657	$	904,440	$	618,104

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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+ Details

Variable Interest Entities	12 Months Ended
Variable Interest Entities	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities Upon completion of the reorganization and IPO, Rocket Companies, Inc. became the managing member of Holdings with 100% of the management and voting power in Holdings. In its capacity as managing member, Rocket Companies, Inc. has the sole authority to make decisions on behalf of Holdings and bind Holdings to signed agreements. Further, Holdings maintains separate capital accounts for its investors as a mechanism for tracking earnings and subsequent distribution rights. Accordingly, management concluded that Holdings is a limited partnership or similar legal entity as contemplated in ASC 810, Consolidation. Furthermore, management concluded that Rocket Companies, Inc. is Holdings’ primary beneficiary. As the primary beneficiary, Rocket Companies, Inc. consolidates the results and operations of Holdings for financial reporting purposes under the variable interest consolidation model guidance in ASC 810. Rocket Companies, Inc.'s relationship with Holdings results in no recourse to the general credit of Rocket Companies, Inc. Holdings and its consolidated subsidiaries represents Rocket Companies, Inc.'s sole investment. Rocket Companies, Inc. shares in the income and losses of Holdings in direct proportion to Rocket Companies, Inc.'s ownership percentage. Further, Rocket Companies, Inc. has no contractual requirement to provide financial support to Holdings. Rocket Companies, Inc.’s financial position, performance and cash flows effectively represent those of Holdings and its subsidiaries as of and for the period ended December 31, 2020. Prior to the reorganization and IPO, Rocket Companies, Inc. was not impacted by Holdings.

Noncontrolling Interests

12 Months Ended

Dec. 31, 2020

Noncontrolling Interest [Abstract]

Noncontrolling Interests

The non-controlling interest balance represents the economic interest in Holdings held by our Chairman and RHI. The following table summarizes the ownership of Holdings Units in Holdings as of December 31, 2020:


	Holdings Units	Ownership Percentage
Rocket Companies, Inc.'s ownership of Holdings Units	115,372,565	5.81	%
Holdings Units held by our Chairman	1,101,822	0.06	%
Holdings Units held by RHI	1,867,977,661	94.13	%
Balance at end of period	1,984,452,048	100.00	%

The non-controlling interest holders have the right to exchange Holdings Units, together with a corresponding number of shares of our Class D common stock or Class C common stock (together referred to as “Paired Interests”), for, at our option, (i) shares of our Class B common stock or Class A common stock or (ii) cash from a substantially concurrent public offering or private sale (based on the price of our Class A common stock). As such, future exchanges of Paired Interests by non-controlling interest holders will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in-capital when Holdings has positive or negative net assets, respectively. As of December 31, 2020, neither our Chairman or RHI has exchanged any Paired Interests.

Stock Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

Included in stock-based compensation for the Company are RKT and RHI denominated awards.

RKT Awards

In connection with the IPO, the Company adopted the 2020 Omnibus Incentive Plan (the “2020 Plan”) in August 2020. The compensation committee of the Company's board of directors, acting as plan administrator, administers the 2020 Plan and the awards granted under it. The Company reserved a total of 94,736,842 shares of Class A common stock for issuance pursuant to the 2020 Plan. The Company currently has two types of share-based compensation awards issued and outstanding under the 2020 Plan: stock options and restricted stock units (“RSUs”).

Stock Options

The Company granted Stock Options to certain team members that vest and become exercisable over a three year period, with 33.33% vesting on the first anniversary of the grant date, and the remaining 66.67% vesting ratably on a monthly basis over the 24 month period following the first anniversary of the grant date, subject to the grantee's employment or service with the Company through each applicable vesting date. The Stock Options will be exercisable, subject to vesting, for a period of 10 years after the grant date. The Stock Options activity for the period from July 1, 2020 to December 31, 2020 was as follows:


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding on July 1, 2020	—	—		—	—
Granted	26,393,381	$	18.01	9.6 Years	$	59,246
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	411,952	$	18.00	9.6 Years	$	1,661
Outstanding as of December 31, 2020	25,981,429	$	18.01	9.6 Years	$	57,585
Exercisable as of December 31, 2020	—	—		—	—

The Company estimates the fair value of the Stock Options at the date of grant using the Black-Scholes option pricing model. Weighted average inputs to the Black-Scholes option pricing model include an expected dividend yield of 1.5%, expected volatility factor of 34.0% (range of 34.0%-34.7%), risk-free interest rate of 0.29% (range of 0.29%-0.50%) and an expected term of 5.85 years, pursuant to vesting terms, resulting in a weighted average fair value of $18.01 per Stock Option. As of December 31, 2020, unrecognized compensation expense related to the Stock Options was $109,381. This expense is expected to be recognized over a weighted average period of 2.6 years.

Expected dividend yield - An increase in the expected dividend yield would decrease compensation expense.

Expected volatility - This is a measure of the amount by which the price of the equity instrument has fluctuated or is expected to fluctuate. The expected volatility was based on the historical volatility of a group of guideline companies. An increase in expected volatility would increase compensation expense.

Risk-free interest rate - This is the U.S. Treasury rate as of the measurement date having a term approximating the expected life of the award. An increase in the risk-free interest rate would increase compensation expense.

Expected term - The period of time over which the awards are expected to remain outstanding. The Company estimates the expected term as the mid-point between actual or expected vesting date and the contractual term. An increase in the expected term would increase compensation expense.

Restricted Stock Units

The Company granted RSUs to certain team members that generally vest on the two year anniversary of the grant date or over a three year period with 33% vesting on each of the first three anniversaries of the grant date, subject, in each case, to the grantee's employment or service with the Company through each applicable vesting date. Certain non-employee directors of the Company received RSUs that vest on the first anniversary of the grant date, subject to the grantee's continued service through the vesting date. The RSU activity for the period from July 1, 2020 to December 31, 2020 was as follows:


	Number of Units	Weighted Average Grant Date Fair Value		Weighted Average Remaining Service Period
Outstanding on July 1, 2020	—	—		—
Granted	16,828,361	$	18.03	2.2 Years
Vested	76,007	$	18.00	1.6 Years
Forfeited	429,974	$	18.00	2.2 Years
Outstanding as of December 31, 2020	16,322,380	$	18.03	2.2 Years

Unrecognized compensation expense related to these RSUs was $246,481 and is expected to be recognized over a weighted average period of 2.2 years.

Summary of RKT Equity-Based Compensation Expense

The Company recognized compensation expenses related to RKT equity-based awards of $66,410 from July 1, 2020 to December 31, 2020. Amounts are included in Salaries, commissions and team member benefits on the Consolidated Statements of Income and Comprehensive Income.

RHI Denominated Restricted Stock Units (“RHI RSUs”)

During 2017 and 2019, RHI granted 1,076,433 and 125,000 RHI RSUs, respectively, to Company team members. Each RHI RSU, upon or after vesting, represents the right of the holder to receive one common share of RHI common stock. The RHI RSUs were accounted for under ASC 718 as equity-classified share-based compensation awards at grant date fair value. The RHI RSUs granted are only subject to service-based vesting with 20%–25% vesting immediately upon issuance and the remaining shares vesting annually over a four-year period. The related compensation expense is recognized on a straight-line basis with forfeitures recognized as they occur. Approximately 80,000, 472,040 and 555,060 unvested RHI RSUs remained outstanding as of December 31, 2020, 2019 and 2018 respectively. Share-based compensation expense of $69,548, $39,029 and $33,203 related to the RHI RSUs was attributable to the Company for the years ended December 31, 2020, 2019 and 2018 respectively, which is included in Salaries, commissions and team member benefits.

RHI Denominated Cash-Settled Award

RHI provided for a tax-offset cash bonus for RHI RSUs granted to certain executives of the Company in 2017. This cash-settled award is accounted for under ASC 718 as a liability classified award. The expense associated with the awards is $26,421, $12,546 and $13,665 for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in Salaries, commissions and team member benefits on the Consolidated Statements of Income and Comprehensive Income.

RHI Denominated Stock Options ("RHI Options")

During 2016, RHI granted RHI Options to Company team members and zero unvested RHI Options remained outstanding as of December 31, 2020. Share-based compensation expense of $32, $425 and $433 for the options was attributable to the Company for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in Salaries, commissions and team member benefits on the Consolidated Statements of Income and Comprehensive Income.

Summary of RHI-Denominated Equity-Based Compensation Expense

Total RHI share-based compensation, including the cash-settled awards attributable to the Company was $96,001, $52,000 and $47,301 for the years ended December 31, 2020, 2019 and 2018, respectively. Remaining compensation expense attributable to the Company for these awards is $14,634 as of December 31, 2020, to be recognized through 2023.

On February 14, 2020, RHI modified the vesting condition for certain RHI RSUs granted in 2017 to accelerate the remaining eight months of the fourth tranche previously due to vest on October 31, 2020. This modification resulted in accelerated expense of $29,433 for 180,020 RHI RSUs in the first quarter of 2020. On May 15, 2020, RHI modified the vesting condition for certain RHI RSUs granted in 2017 and 2019. For the 2017 grants RHI accelerated the tranche previously due to vest on

October 31, 2021 and for the 2019 grants RHI accelerated the tranche previously due to vest on October 31, 2020. This modification resulted in accelerated expense of $38,371 for 198,020 RHI RSUs in the second quarter of 2020.

Summary of Equity-Based and Cash-Settled Compensation Expense

The Company recognized compensation expenses related to all equity-based and cash-settled awards of $162,608, $52,249, and $47,301 for the years ended December 31, 2020, 2019, and 2018. Included in these amounts are the total equity-based compensation expenses related to RKT-denominated Awards of $66,410 for the year ended December 31, 2020, total equity-based and cash-settled compensation expenses related to RHI-denominated Awards of $96,001, $52,000, and $47,301 for the years ended December 31, 2020, 2019, and 2018, and total equity-based compensation expenses related to a plan of a subsidiary of RKT Holdings, LLC of $197 and $249 for the years ended December 31, 2020 and 2019 all of which are included in Salaries, commissions, and team member benefits on the Consolidated Statements of Income and Comprehensive Income.

Team Member Stock Purchase Plan

In connection with the IPO, the Team Member Stock Purchase Plan ("TMSPP") will commence with the first offering period beginning in January 2021. Under the TMSPP, the Company is authorized to issue up to 10,526,316 shares of its common stock to qualifying team members. Eligible team members may direct the Company, during each three-month option period, to withhold up to 15% of their gross pay, the proceeds from which are used to purchase shares of common stock at a price equal to 85% of the closing market price on the exercise date. For accounting purposes, the TMSPP is considered a compensatory plan such that the Company recognizes equity-based compensation expense based on the fair value of the options held by the team members to purchase the Company's shares.

Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Rocket Companies, Inc. by the weighted-average number of shares of Class A common stock, outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Rocket Companies, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. There was no Class B common stock outstanding as of December 31, 2020. See Note 17, Noncontrolling Interests for a description of Paired Interests. Refer to Note 1, Business, Basis of Presentation and Accounting Policies for additional information related to basic and diluted earnings per share.

Prior to the IPO, Holdings membership structure included equity interests held by RHI. The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per share information has not been presented for the years ended December 31, 2019 and 2018. The basic and diluted earnings per share period for the year ended December 31, 2020, represents only the period from August 6, 2020 to December 31, 2020, which represents the period wherein the Company had outstanding Class A common stock.

The following table sets for the calculation of the basic and diluted earnings per share for the periods following the reorganization and IPO for Class A common stock:


	Year Ended December 31,
	2020
Net income	$	9,399,276
Net income attributable to non-controlling interests	$	9,201,325
Net income attributable to Rocket Companies	$	197,951
Numerator:
Net income attributable to Class A common shareholders	$	197,951
Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards	7,092
Net income attributable to Class A common shareholders - diluted	$	205,043
Denominator:
Weighted average shares of Class A common stock outstanding - basic	111,926,619

Add: Class A common stock issued upon vesting of RSUs	4,063,444
Add: Class A common stock issued upon exercise of stock options	248,430
Weighted average shares of Class A common stock outstanding - diluted	116,238,493
Earnings per share of Class A common stock outstanding - basic	$	1.77
Earnings per share of Class A common stock outstanding - diluted	$	1.76

For the period from August 6, 2020 to December 31, 2020, 1,872,476,780 Holdings Units, each weighted for the portion of the period for which they were outstanding, together with a corresponding number of shares of our Class D common stock, were exchangeable, at our option, for shares of our Class A common stock. After evaluating the potential dilutive effect under the if-converted method, the outstanding Holdings Units for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share.

Unaudited Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Unaudited Selected Quarterly Financial Data

The following table is a condensed summary of the unaudited quarterly financial information for the three month periods ended 2020 and 2019.


	Quarter Ended 2020
	March 31		June 30		September 30		December 31
Total revenue, net	$	1,366,309	$	5,035,813	$	4,634,118	$	4,698,942
Income before income taxes	$	100,279	$	3,485,530	$	3,057,066	$	2,888,782
Net income	$	99,047	$	3,464,082	$	2,995,383	$	2,840,764
Net income attributable to Rocket Companies	$	—	$	—	$	57,903	$	140,048

Earnings per share of Class A common stock:
Basic	N/A		N/A		$0.54		$1.21
Diluted	N/A		N/A		$0.54		$1.09

	Quarter Ended 2019
	March 31		June 30		September 30		December 31
Total revenue, net	$	632,012	$	936,762	$	1,620,425	$	1,928,121
Income (loss) before income taxes	$	(299,613)	$	(52,879)	$	499,747	$	757,185
Net income (loss)	$	(298,769)	$	(52,897)	$	494,630	$	754,166
Net income attributable to Rocket Companies	$	—	$	—	$	—	$	—

Earnings per share of Class A common stock:
Basic	N/A		N/A		N/A		N/A
Diluted	N/A		N/A		N/A		N/A

Business, Basis of Presentation and Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Rocket Companies, Inc. (the "Company", and together with its consolidated subsidiaries, "Rocket Companies", "we", "us", "our") was incorporated in Delaware on February 26, 2020 as a wholly owned subsidiary of Rock Holdings Inc. ("RHI") for the purpose of facilitating an initial public offering ("IPO") of its Class A common stock and other related transactions in order to carry on the business of RKT Holdings, LLC ("Holdings") and its wholly owned subsidiaries. We are a Detroit-based holding company consisting of tech-driven real estate, mortgage and eCommerce businesses. We are committed to providing an industry-leading client experience powered by our platform. In addition to Rocket Mortgage, the nation’s largest mortgage lender, we have expanded into complementary industries, such as real estate services, personal lending, and auto sales where we seek to deliver innovative client solutions leveraging our Rocket platform. Our business operations are organized into the following two segments: (1) Direct to Consumer, (2) Partner Network (refer to Note 15, Segments). Rocket Companies, Inc. is a holding company. Its primary material asset is the equity interest in Holdings which, through its direct and indirect subsidiaries, conducts all of the Company's operations. Holdings is a Michigan limited liability company and wholly owns Quicken Loans, LLC, Amrock Holdco, LLC (“Amrock”, "Amrock Title Insurance Company" and "Nexsys Technologies LLC"), LMB HoldCo LLC (“Core Digital Media”), RCRA Holdings LLC (“Rock Connections” and “Rocket Auto”), Rocket Homes Real Estate LLC (“Rocket Homes”), RockLoans Holdings LLC (“Rocket Loans”), Rock Central LLC, EFB Holdings Inc. (“Edison Financial”), Lendesk Canada Holdings Inc., RockTech Canada Inc., Woodward Capital Management LLC, and Amrock Title Insurance Company. Because Rocket Companies, Inc. is the managing member of Holdings, Rocket Companies, Inc. indirectly operates and controls all of the business affairs of Holdings and its subsidiaries. As used herein, “Rocket Mortgage” refers to either the Rocket Mortgage brand or platform, or the Quicken Loans business, as the context allows. Initial Public Offering On August 10, 2020 we completed the IPO of our common stock pursuant to a Registration Statement on Form S-1 (File No. 333-239726), which closed on August 10, 2020. In the IPO, we sold an aggregate of 115,000,000 shares of Class A common stock, including 15,000,000 shares of Class A common stock purchased by the underwriters on September 9, 2020 pursuant to the underwriters’ option to purchase additional shares at the initial public offering price, less underwriting discounts and commissions. Rocket Companies, Inc. received net proceeds from the IPO of approximately $2,023,000 after deducting underwriting discounts and commissions, all of which was used to purchase 115,000,000 non-voting membership units of Holdings (the “Holdings Units”) and shares of Class D common stock from RHI. Prior to the completion of the offering, RHI, Holdings and its subsidiaries consummated an internal reorganization. As a result of the IPO and the reorganization: • Rocket Companies, Inc. is the sole managing member of Holdings, which owns direct interests in (a) Rocket Mortgage and (b) various other former direct subsidiaries of RHI. • Dan Gilbert, our founder and Chairman (our "Chairman"), RHI, and Rocket Companies, Inc. are members of Holdings. • The certificate of incorporation of Rocket Companies, Inc. was amended to, among other things, authorize the Company to issue four classes of common stock: Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock. • Holdings is treated as a partnership for U.S. federal income tax purposes and, as such, is itself generally not subject to U.S. federal income tax under current U.S. tax laws. Each member of Holdings will be required to take into account for U.S. federal income tax purposes its distributive share of the items of income, gain, loss and deduction of Holdings. In connection with the reorganization, we entered into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Internal Revenue Code of 1986, as amended (the “Code”) that relate to the reorganization transactions. We will retain the remaining 10% benefit of these tax savings. As the reorganization is considered transactions between entities under common control, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. Prior to the reorganization, Rocket Companies, Inc. had no operations. Basis of Presentation and Consolidation Prior to the completion of our reorganization and IPO, as defined above and in our registration statement on form S-1, RKT Holdings, LLC and its subsidiaries operated as part of RHI and not as a stand-alone entity. Income from RKT Holdings, LLC and its subsidiaries prior to the reorganization and IPO has been accounted for as a non-controlling interest in our Consolidated Statements of Income. Our Consolidated Statements of Changes in Equity presents the accumulated net income prior to the reorganization and IPO in net parent investment as the financial statements prior to the reorganization and IPO reflect combined subsidiaries operating as part of RHI. As part of our reorganization, we reorganized the legal structure of our entities, so they are all under a single parent entity, RKT Holdings, LLC. As the sole managing member of Holdings, the Company operates and controls all of the business and affairs of Holdings, and through Holdings and its subsidiaries, conducts its business. Because we manage and operate the business and control the strategic decisions and day-to-day operations of Holdings and also have a substantial financial interest in Holdings, we consolidate the financial results of Holdings, and a portion of our net income is allocated to the non-controlling interests. RKT Holdings, LLC is considered a variable interest entity, or VIE. In addition, because RKT Holdings, LLC and its subsidiaries are under the common control of RHI, we account for the reorganization as a reorganization of entities under common control and initially measured the interests of RHI in the assets and liabilities of Holdings at their carrying amounts as of the date of the completion of the reorganization. The net parent investment as a result of the common control transaction with Rocket Companies, Inc. was allocated between non-controlling interest and additional paid-in capital based on the ownership of RKT Holdings, LLC. Prior to the reorganization and IPO, all revenues and expenses as well as assets and liabilities that are either legally attributable to us or directly associated with our business activities are included in the consolidated financial statements. Net parent investment represents RHI’s interest in the recorded net assets of the Company. All significant transactions between the Company and RHI have been included in the accompanying consolidated financial statements and are reflected in the accompanying Consolidated Statements of Changes in Equity as “Net transfers to/from parent” and in the accompanying Consolidated Balance Sheets within “Net parent investment.” In conjunction with the reorganization and IPO, we reclassified RHI's historical net parent investment in us to additional paid-in-capital. All significant intercompany transactions and accounts between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements. The Company's derivatives, IRLCs, mortgage loans held for sale, MSRs (including MSRs collateral for financing liability and MSRs financing liability), and investments are measured at fair value on a recurring basis. Additionally, other assets may be required to be measured at fair value in the consolidated financial statements on a nonrecurring basis. Examples of such measurements are mortgage loans transferred between held for investment and held for sale, certain impaired loans, and other real estate owned. For further details of the Company's transactions refer to Note 2, Fair Value Measurements. All transactions and accounts between RHI and other related parties with the Company have a history of settlement or will be settled for cash, and are reflected as related party transactions. For further details of the Company’s related party transactions refer to Note 7, Transactions with Related Parties.
Basis of Presentation	Our consolidated financial statements are audited and presented in U.S. dollars. They have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Our consolidated financial statements for periods prior to the reorganization and IPO have been derived from our consolidated financial statements, which combined the subsidiaries that historically operated as part of RHI and were included in the IPO registration statement, with further adjustments only to comply with the presentation requirements for consolidated financial statements purposes and to reflect retrospectively the Amrock Title Insurance Company ("ATI") common control acquisition as discussed further below in the Acquisition Agreement section. Amounts for the period from January 1, 2020 through August 5, 2020, as of December 31, 2019, and year ended December 31, 2019 and 2018 presented in the consolidated financial statements and notes to consolidated financial statements herein represent the historical operations of the Company including those of ATI. These amounts are prepared on a basis materially consistent, including intercompany eliminations, with the amounts as of December 31, 2020 and for the period from August 6, 2020 through December 31, 2020, reflecting the consolidated operations of the Company including ATI. We believe the assumptions underlying the consolidated financial statements, including the assumptions regarding allocation of expenses from RHI are reasonable. Prior to the reorganization and IPO, the executive management compensation expense has been allocated based on time incurred for services provided to Holdings and its subsidiaries. Total costs allocated to us for these services were $96,199, $52,250 and $47,301 for the years ended December 31, 2020, 2019 and 2018, respectively. These amounts were included in salaries, commissions and team member benefits in our Consolidated Statements of Income and Comprehensive Income. In our opinion, these consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position and cash flows for the periods presented.
Management Estimates	Management Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates.
Share Repurchase Authorization	Share Repurchase Authorization On November 10, 2020, our Board of Directors approved a share repurchase program of up to $1.0 billion of our Common Stock, including both Class A and Class D, which repurchases may be made, from time to time, in privately negotiated transactions or in the open market, in accordance with applicable securities laws (the “Share Repurchase Program”). The Share Repurchase Program will remain in effect for a two-year period. The Share Repurchase Program authorizes but does not obligate the Company to make any repurchases at any specific time. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. As of December 31, 2020 no shares have been repurchased under the Share Repurchase Program.
Revenue Recognition	Revenue Recognition Gain on sale of loans, net—Gain on sale of loans, net includes all components related to the origination and sale of mortgage loans, including (1) net gain on sale of loans, which represents the premium we receive in excess of the loan principal amount and certain fees charged by investors upon sale of loans into the secondary market, (2) loan origination fees (credits), points and certain costs, (3) provision for or benefit from investor reserves, (4) the change in fair value of interest rate locks and loans held for sale, (5) the gain or loss on forward commitments hedging loans held for sale and interest rate lock commitments (IRLCs), and (6) the fair value of originated MSRs. An estimate of the gain on sale of loans, net is recognized at the time an IRLC is issued, net of a pull-through factor. Subsequent changes in the fair value of IRLCs and mortgage loans held for sale are recognized in current period earnings. When the mortgage loan is sold into the secondary market, any difference between the proceeds received and the current fair value of the loan is recognized in current period earnings in Gain on sale of loans, net. Included in Gain on sale of loans, net is the fair value of originated MSRs, which represents the estimated fair value of MSRs related to loans which we have sold and retained the right to service. Refer to Note 3, Mortgage Servicing Rights for information related to the gain/(loss) on changes in the fair value of MSRs. Loan servicing (loss) income, net—Loan servicing (loss) income, net includes income from servicing, sub-servicing and ancillary fees, and is recorded to income as earned, which is upon collection of payments from borrowers. This amount also includes the Change in fair value of MSRs, which is the adjustment for the fair value measurement of the MSR asset as of the respective balance sheet date. Interest income, net—Interest income includes interest earned on mortgage loans held for sale and mortgage loans held for investment net of the interest expense paid on our loan funding facilities. Interest income is recorded as earned and interest expense is recorded as incurred. Other income—Other income is derived primarily from lead generation revenue, professional service fees, real estate network referral fees, contact center revenue, personal loans business, closing fees, net appraisal revenue, and net title insurance fees. The following revenue streams fall within the scope of ASC Topic 606—Revenue from Contracts with Customers and are disaggregated hereunder: Core Digital Media lead generation revenue—The Company recognizes online consumer acquisition revenue based on successful delivery of marketing leads to a client at a fixed fee per lead. This service is satisfied at the time the lead is delivered, at which time revenue for the service is recognized. Online consumer acquisition revenue, net of intercompany eliminations, were $24,231, $41,895, and $79,774 for the years ended December 31, 2020, 2019, and 2018, respectively. Professional service fees—The Company recognizes professional service fee revenue based on the delivery of services (e.g., human resources, technology, training) over the term of a contract. Consideration for the promised services is received through a combination of a fixed fee for the period and incremental fees paid for optional services that are available at an incremental rate determined at the time such services are requested. The Company recognizes the annual fee ratably over the life of the contract, as the performance obligation is satisfied equally over the term of the contract. For the optional services, revenue is only recognized at the time the services are requested and delivered and pricing is agreed upon. Professional service fee revenues were $10,884, $8,320, and $5,088 for the years ended December 31, 2020, 2019, and 2018, respectively, and were rendered entirely to related parties. Rocket Homes real estate network referral fees—The Company recognizes real estate network referral fee revenue based on arrangements with partner agencies contingent on the closing of a transaction. As this revenue stream is variable, and is contingent on the successful transaction close, the revenue is constrained until the occurrence of the transaction. At this point, the constraint on recognizing revenue is deemed to have been lifted and revenue is recognized for the consideration expected to be received. Real estate network referral fees, net of intercompany eliminations, were $42,777, $39,924, and $33,229 for the years ended December 31, 2020, 2019, and 2018, respectively. Rock Connections and Rocket Auto contact center revenue—The Company recognizes contact center revenue for communication services including client support and sales. Consideration received includes a fixed base fee and/or a variable contingent fee. The fixed base fee is recognized ratably over the period of performance, as the performance obligation is considered to be satisfied equally throughout the service period. The variable contingent fee related to car sales is constrained until the sale of the car is completed. Contact center revenues, net of intercompany eliminations, were $27,904, $27,055, and $23,043 for the years ended December 31, 2020, 2019, and 2018, respectively. Amrock closing fees—The Company recognizes closing fees for non-recurring services provided in connection with the origination of the loan. These fees are recognized at the time of loan closing for purchase transactions or at the end of a client's three-day rescission period for refinance transactions, which represents the point in time the loan closing services performance obligation is satisfied. The consideration received for closing services is a fixed fee per loan that varies by state and loan type. Closing fees were $457,703, $200,920, and $139,176 for the years ended December 31, 2020, 2019, and 2018, respectively. Amrock appraisal revenue, net—The Company recognizes appraisal revenue when the appraisal service is completed. The Company may choose to deliver appraisal services directly to its client or subcontract such services to a third-party licensed and/or certified appraiser. In instances where the Company performs the appraisal, revenue is recognized as the gross amount of consideration received at a fixed price per appraisal. The Company is an agent in instances where a third-party appraiser is involved in the delivery of appraisal services and revenue is recognized net of third-party appraisal expenses. Appraisal revenue, net was $78,673, $76,200, and $64,515 for the years ended December 31, 2020, 2019, and 2018, respectively.
Marketing and Advertising Costs	Marketing and Advertising Costs Marketing and advertising costs for direct and non-direct response advertising are expensed as incurred. The costs of brand marketing and advertising are expensed in the period the advertising space or airtime is used.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions. Restricted cash as of December 31, 2020, 2019, and 2018 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten insurance company and a $25,000 bond.
Mortgage Loans Held for Sale	Mortgage Loans Held for Sale The Company has elected the fair value option for accounting for mortgage loans held for sale. Included in mortgage loans held for sale are loans originated as held for sale that are expected to be sold into the secondary market and loans that have been previously sold and repurchased from investors that management intends to resell into the secondary market.
Derivative Financial Instruments	Derivative Financial Instruments The Company enters into interest rate lock commitments ("IRLCs"), forward commitments to sell mortgage loans and forward commitments to purchase loans, which are considered derivative financial instruments. These items are accounted for as free-standing derivatives and are included in the Consolidated Balance Sheets at fair value. The Company treats all of its derivative instruments as economic hedges; therefore, none of its derivative instruments qualify for designation as accounting hedges. Changes in the fair value of the IRLCs and forward commitments to sell mortgage loans are recorded in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. Forward commitments to purchase mortgage loans are recognized in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. The Company enters into IRLCs to fund residential mortgage loans with its potential borrowers. These commitments are binding agreements to lend funds to these potential borrowers at specified interest rates within specified periods of time. The fair value of IRLCs is derived from the fair value of similar mortgage loans or bonds, which is based on observable market data. Changes to the fair value of IRLCs are recognized based on changes in interest rates, changes in the probability that the commitment will be exercised, and the passage of time. The expected net future cash flows related to the associated servicing of the loan are included in the fair value measurement of rate locks. IRLCs and uncommitted mortgage loans held for sale expose the Company to the risk that the value of the mortgage loans held and mortgage loans underlying the commitments may decline due to increases in mortgage interest rates during the life of the commitments. To protect against this risk, the Company uses forward loan sale commitments to economically hedge the risk of potential changes in the value of the loans. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the IRLCs and uncommitted mortgage loans held for sale. The changes in the fair value of these derivatives are recorded in gain on sale of loans, net. MSR assets (including the MSR value associated with outstanding IRLCs) that the Company plans to sell expose the Company to the risk that the value of the MSR asset may decline due to decreases in mortgage interest rates prior to the sale of these assets. To protect against this risk, the Company uses forward loan purchase commitments to economically hedge the risk of potential changes in the value of MSR assets that have been identified for sale. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the MSR assets the Company intends to sell. The changes in fair value of these derivatives are recorded in the change in fair value of MSRs, net. Forward commitments include To-Be-Announced ("TBA") mortgage-backed securities that have been aggregated at the counterparty level for presentation and disclosure purposes. Counterparty agreements contain a legal right to offset amounts due to and from the same counterparty under legally enforceable master netting agreements to settle with the same counterparty, on a net basis, as well as the right to obtain cash collateral. Forward commitments also include commitments to sell loans to counterparties and to purchase loans from counterparties at determined prices. Refer to Note 12, Derivative Financial Instruments for further information.
Mortgage Servicing Rights	Mortgage Servicing Rights Mortgage servicing rights are recognized as assets on the Consolidated Balance Sheets when loans are sold, and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. These MSRs are recorded at fair value, which is determined using a valuation model that calculates the present value of estimated future net servicing fee income. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income and late fees, among others. These estimates are supported by market and economic data collected from various outside sources. Refer to Note 3, Mortgage Servicing Rights for further information.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation of property and equipment is generally computed on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the estimated useful lives or the remaining lease terms. Depreciation is not recorded on projects-in-process until the project is complete and the associated assets are placed into service or are ready for the intended use. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is credited or charged to operations. Costs of maintenance and repairs are charged to expense as incurred. Refer to Note 5, Property and Equipment for further information.
Loans subject to repurchase right from Ginnie Mae	Loans subject to repurchase right from Ginnie Mae For certain loans sold to Ginnie Mae, the Company as the servicer has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets defined criteria, including being delinquent more than 90 days. Once the Company has the unilateral right to repurchase the delinquent loan, the Company has effectively regained control over the loan and must re-recognize the loan on the Consolidated Balance Sheets and establish a corresponding finance liability regardless of the Company's intention to repurchase the loan. The asset and corresponding liability are recorded at the unpaid principal balance of the loan, which approximates its fair value.
Non-controlling Interests	Non-controlling interests As noted above, we are the sole managing member of Holdings and consolidate the financial results of Holdings. Therefore, we report a non-controlling interest based on the Holdings Units of Holdings held by our Chairman and RHI (the "non-controlling interest holders") on our Consolidated Balance Sheets. Income or loss is attributed to the non-controlling interests based on the weighted average Holdings Units outstanding during the period and is presented on the Consolidated Statements of Income and Comprehensive Income. Refer to Note 17, Noncontrolling Interests for more information.
Stock-based Compensation	Stock-based Compensation In connection with the IPO, equity-based awards were issued under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan including restricted stock units and stock options to purchase shares of our Class A common stock at an exercise price equal to the price to the public in the initial public offering. Stock-based compensation expense is recorded as a component of salaries, commissions and team member benefits. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant, refer to Note 18, Stock Based Compensation for additional information.
Income Taxes	Income taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes predominantly in the United States and Canada. These tax laws are often complex and may be subject to different interpretations. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable. Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. We regularly review whether we may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. We recognize the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We record interest and penalties related to uncertain income tax positions in income tax expense. For additional information regarding our provision for income taxes refer to Note 11, Income Taxes. Tax Receivable Agreement In connection with the reorganization, we entered into a Tax Receivable Agreement with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. We will retain the benefit of the remaining 10% of these tax savings. For additional information regarding our TRA refer to Note 7, Transactions with Related Parties, Note 11, Income Taxes, and Note 13, Commitments, Contingencies, and Guarantees. The Company recognized a liability for the Tax Receivable Agreement based upon the estimate of future TRA payments. The amounts payable under the Tax Receivable Agreement will vary depending upon a number of factors, including the amount, character, and timing of the taxable income of Rocket Companies in the future. Any such changes in these factors or changes in the Company’s determination of the need for a valuation allowance related to the tax benefits acquired under the Tax Receivable Agreement could adjust the Tax receivable agreement liability recognized and recorded within earnings in future periods.
Basic and Diluted Earnings Per Share	Basic and Diluted Earnings Per Share The Company applies the two-class method for calculating and presenting earnings per share by separately presenting earnings per share for Class A common stock and Class B common stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A and Class B common stock. According to the Company’s certificate of incorporation, the holders of the Class A and Class B common stock are entitled to participate in earnings equally on a per-share basis, as if all shares of common stock were of a single class, and in such dividends as may be declared by the board of directors. Holders of the Class A and Class B common stock also have equal priority in liquidation. Shares of Class C and Class D common stock do not participate in earnings of Rocket Companies, Inc. As a result, the shares of Class C and Class D common stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings per share. Restricted stock units awarded as part of the Company’s compensation program, described in Note 18, Stock Based Compensation are included in the weighted-average Class A shares outstanding in the calculation of basic EPS once the units are fully vested. Refer to Note 19, Earnings Per Share for more information.
Recently Adopted Accounting Pronouncements and Accounting Standards Issued but Not Yet Adopted	Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which introduced an expected credit loss model for the impairment of financial assets, measured at amortized cost. The model replaces the probable, incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”) with an immaterial impact to our consolidated financial position, results of operations or cash flows. Based upon management’s scoping analysis, the Company determined that notes and other receivables are within the scope of ASU 2016-13. The Company determined that these are short-term in nature (less than one year) and of high credit quality, and the estimated credit-related losses over the life of these receivables are also immaterial. For each of the aforementioned financial instruments carried at amortized cost, the Company enhanced its processes to consider and include the requirements of ASU 2016-13, as applicable, into the determination of credit-related losses. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments to Topic 740 include the removal of certain exceptions to the general principles of ASC 740 in such areas as intraperiod tax allocation, year to date losses in interim periods and deferred tax liabilities related to outside basis differences. Amendments also include simplification in other areas such as interim recognition of enactment of tax laws or rate changes and accounting for a franchise tax (or similar tax) that is partially based on income. The transition method varies by amendment and can be on a prospective, retrospective, or modified retrospective basis depending on the amendment. The Company early adopted this standard effective as of January 1, 2020. The adoption of this ASU had an immaterial impact on the consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics to increase shareholder awareness and make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, with no material effect on our consolidated financial position, results of operations or cash flows. Accounting Standards Issued but Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”) by the end of 2022. This guidance is effective upon issuance and allows application to contract changes as early as January 1, 2020. The Company is in the process of transitioning its funding facilities and financing facilities that utilize LIBOR as the reference rate. For contracts to which ASC Topic 470, Debt applies, we have applied the optional expedients available from ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. Of the contracts that have been adjusted for the new reference rate, there has been an immaterial impact on the consolidated financial statements. The Company is continuing to evaluate the impact that the adoption of this ASU will have on the consolidated financial statements and related disclosures.
Fair Value Measurements	Fair value is the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2, and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Valuation is based on either observable prices for identical assets or liabilities in inactive markets, observable prices for similar assets or liabilities, or other inputs that are derived directly from, or through correlation to, observable market data at the measurement date. Level 3—Valuation is based on the Company’s internal models using assumptions at the measurement date that a market participant would use. In determining fair value measurement, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value. The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of December 31, 2020 or December 31, 2019. Mortgage loans held for sale: Loans held for sale that trade in active secondary markets are valued using Level 2 measurements derived from observable market data, including market prices of securities backed by similar mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes. IRLCs: The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor”. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. MSRs: The fair value of MSRs (including MSRs collateral for financing liability and MSRs financing liability) is determined using a valuation model that calculates the present value of estimated net future cash flows. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income among others. These fair value measurements are classified as Level 3. Forward commitments: The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified within Level 2 of the valuation hierarchy.

Business, Basis of Presentation and Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions.

Restricted cash as of December 31, 2020, 2019, and 2018 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten insurance company and a $25,000 bond.


	December 31,
	2020		2019		2018
Cash and cash equivalents	$	1,971,085	$	1,394,571	$	1,089,039
Restricted cash	83,018		61,154		47,284
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$	2,054,103	$	1,455,725	$	1,136,323

Schedule of Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions.

Restricted cash as of December 31, 2020, 2019, and 2018 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten insurance company and a $25,000 bond.


	December 31,
	2020		2019		2018
Cash and cash equivalents	$	1,971,085	$	1,394,571	$	1,089,039
Restricted cash	83,018		61,154		47,284
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$	2,054,103	$	1,455,725	$	1,136,323

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Financial Statement Items Measured at Estimated Fair Value on a Recurring Basis

The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the year ended December 31, 2020 or the year ended December 31, 2019.


	Level 1		Level 2		Level 3		Total
Balance at December 31, 2020
Assets:
Mortgage loans held for sale	$	—	$	22,285,440	$	579,666	$	22,865,106
IRLCs	—		—		1,897,194		1,897,194
MSRs	—		—		2,862,685		2,862,685
MSRs collateral for financing liability(1)	—		—		205,033		205,033
Forward commitments	—		20,584		—		20,584
Total assets	$	—	$	22,306,024	$	5,544,578	$	27,850,602
Liabilities:
Forward commitments	$	—	$	506,071	$	—	$	506,071
MSRs financing liability(1)	—		—		187,794		187,794
Total liabilities	$	—	$	506,071	$	187,794	$	693,865

Balance at December 31, 2019
Assets:
Mortgage loans held for sale	$	—	$	12,966,942	$	308,793	$	13,275,735
IRLCs	—		—		508,135		508,135
MSRs	—		—		2,874,972		2,874,972
MSRs collateral for financing liability(1)	—		—		205,108		205,108
Forward commitments	—		3,838		—		3,838
Total assets	$	—	$	12,970,780	$	3,897,008	$	16,867,788
Liabilities:
Forward commitments	$	—	$	43,794	$	—	$	43,794
MSRs financing liability(1)	—		—		189,987		189,987
Total liabilities	$	—	$	43,794	$	189,987	$	233,781

(1) Refer to Note 3, Mortgage Servicing Rights for further information regarding both the MSRs collateral for financing liability and MSRs financing liability.

Schedule of Quantitative Information About Fair Value Measurements of Level 3 Financial Instruments

The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of:


	December 31, 2020			December 31, 2019
Unobservable Input	Range	Weighted Average		Range	Weighted Average
Mortgage loans held for sale
Dealer pricing	89% - 105%	99	%	75% - 103%	98	%
IRLCs
Loan funding probability	0% - 100%	74	%	0% - 100%	72	%
MSRs, MSRs collateral for financing liability, and MSRs financing liability
Discount rate	9.5% - 12.0%	9.9	%	9.5% - 12.0%	10.0	%
Conditional prepayment rate	6.6% - 52.1%	15.8	%	7.4% - 44.5%	14.5	%

Schedule of Reconciliation of Level 3 Assets

The table below presents a reconciliation of Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019. Mortgage servicing rights (including MSRs collateral for financing liability and MSRs financing liability) are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 3, Mortgage Servicing Rights.


	Loans Held for Sale		IRLCs
Balance at December 31, 2019	$	308,793	$	508,135
Transfers in(1)	1,215,121		—
Transfers out/principal reductions(1)	(944,446)		—
Net transfers and revaluation gains	—		1,389,059
Total gains included in net income	198		—
Balance at December 31, 2020	$	579,666	$	1,897,194

Balance at December 31, 2018	$	194,752	$	245,663
Transfers in(1)	1,058,143		—
Transfers out/principal reductions(1)	(945,444)		—
Net transfers and revaluation gains	—		262,472
Total gains included in net income	1,342		—
Balance at December 31, 2019	$	308,793	$	508,135

(1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold to third parties and loans paid in full.

Schedule of Fair Value Option for Mortgage Loans Held For Sale

The following is the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans held for sale that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for mortgage loans held for sale as the Company believes fair value best reflects their expected future economic performance:


	Fair Value		Principal Amount Due Upon Maturity		Difference(1)
Balance at December 31, 2020	$	22,865,106	$	21,834,817	$	1,030,289
Balance at December 31, 2019	$	13,275,735	$	12,929,143	$	346,592

(1) Represents the amount of gains included in Gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option.

Schedule of Liabilities not Recorded at Fair Value on a Recurring or Nonrecurring Basis

The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes cash and cash equivalents, restricted cash, warehouse borrowings, and line of credit borrowing facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value:


	December 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Senior Notes, due 5/1/2025	$	—	$	—	$	1,241,012	$	1,297,250
Senior Notes, due 1/15/2028	$	994,986	$	1,079,629	$	992,779	$	1,046,683
Senior Notes, due 3/1/2029	$	741,946	$	766,365	$	—	$	—
Senior Notes, due 3/1/2031	$	1,236,114	$	1,298,175	$	—	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2020

Transfers and Servicing [Abstract]

Summary of Changes to MSR Assets

The following table summarizes changes to the MSR assets for the year ended:


	Year Ended December 31,
	2020		2019
Fair value, beginning of period	$	2,874,972	$	3,180,530
MSRs originated	3,124,659		1,771,651
MSRs sales	(770,809)		(486,078)
Changes in fair value:
Due to changes in valuation model inputs or assumptions(1)	(1,274,937)		(784,401)
Due to collection/realization of cash flows	(1,091,200)		(806,730)
Total changes in fair value	(2,366,137)		(1,591,131)
Fair value, end of period	$	2,862,685	$	2,874,972

(1) Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates. Does not include the change in fair value of derivatives that economically hedge MSRs identified for sale.

Schedule of Assumptions Used to Determine Fair Value of MSRs

The following is a summary of the weighted average discount rate and prepayment speed assumptions used to determine the fair value of MSRs as well as the expected life of the loans in the servicing portfolio:


	December 31, 2020		December 31, 2019
Discount rate	9.9	%	10.0	%
Prepayment speeds	15.8	%	14.5	%
Life (in years)	5.05		5.33

Summary of Discount Rate and Prepayment Speeds at Two Different Data Points

The following table stresses the discount rate and prepayment speeds at two different data points:


	Discount Rate				Prepayment Speeds
	100 BPS Adverse Change		200 BPS Adverse Change		10% Adverse Change		20% Adverse Change
December 31, 2020
Mortgage servicing rights	$	(115,130)	$	(212,119)	$	(147,420)	$	(279,691)
December 31, 2019
Mortgage servicing rights	$	(101,495)	$	(195,894)	$	(133,039)	$	(259,346)

Mortgage Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Reconciliation of Changes in Mortgage Loans Held for Sale

A reconciliation of the changes in mortgage loans held for sale to the amounts presented on the Consolidated Statements of Cash Flows is below:


	Year Ended December 31,
	2020		2019
Balance at the beginning of period	$	13,275,735	$	5,784,812
Disbursements of mortgage loans held for sale	316,702,083		144,002,172
Proceeds from sales of mortgage loans held for sale(1)	(318,218,159)		(139,275,683)
Gain on sale of mortgage loans excluding fair value of other financial instruments, net(2)	11,105,447		2,764,434
Balance at the end of period	$	22,865,106	$	13,275,735

(1) The proceeds from sales of loans held for sale on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans.

(2) The Gain on sale of loans excluding fair value of MSRs, net on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans, interest rate lock commitments, forward commitments, and provisions for investor reserves.

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:


	December 31,
	2020		2019
Office furniture, equipment, and technology	$	380,826	$	364,957
Leasehold improvements	148,320		133,002
Internally-developed software	100,393		67,132
Projects-in-process	79,434		39,895
Total cost	$	708,973	$	604,986
Accumulated depreciation and amortization	(497,812)		(428,540)
Total property and equipment, net	$	211,161	$	176,446

Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Funding Facilities

Funding Facilities


Facility Type	Collateral	Maturity	Line Amount		Committed Line Amount		Outstanding Balance December 31, 2020		Outstanding Balance December 31, 2019
MRA funding:
1) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	10/22/2021	$	2,000,000	$	100,000	$	999,752	$	835,302
2) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	12/2/2021	1,500,000		500,000		1,320,484		1,390,839
3) Master Repurchase Agreement(1)(7)	Mortgage loans held for sale(6)	4/22/2022	3,250,000		1,000,000		2,407,156		2,622,070
4) Master Repurchase Agreement(2)(7)	Mortgage loans held for sale(6)	10/26/2021	2,000,000		1,700,000		1,953,949		875,617
5) Master Repurchase Agreement(3)(7)	Mortgage loans held for sale(6)	4/22/2021	2,500,000		500,000		2,004,707		2,063,099
6) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/5/2022	2,000,000		1,000,000		1,780,902		965,903
7) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/16/2021	1,750,000		1,137,500		1,343,130		773,822
8) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	6/12/2021	400,000		—		219,786		—
9) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	9/24/2021	1,500,000		750,000		983,126		—
10) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	10/9/2021	500,000		—		480,544		—
11) Master Repurchase Agreement(7)	Mortgage loans held for sale(6)	12/17/2021	1,000,000		500,000		765,432		—
			$	18,400,000	$	7,187,500	$	14,258,968	$	9,526,652
Early Funding:
12) Early Funding Facility(4)(7)	Mortgage loans held for sale(6)	(4)	4,000,000		—		2,514,193		2,022,179
13) Early Funding Facility(5)(7)	Mortgage loans held for sale(6)	(5)	3,000,000		—		969,412		493,047
			7,000,000		—		3,483,605		2,515,226
Total			$	25,400,000	$	7,187,500	$	17,742,573	$	12,041,878

(1) This facility had an overall line size of $3,250,000 with $1,000,000 committed until December 31, 2020. Subsequent to December 31, 2020, the facility decreased to $2,750,000 with $1,000,000 committed.

(2) This facility has a 12-month initial term, which can be extended for 3-months at each subsequent 3-month anniversary from the initial start date. Subsequent to December 31, 2020 this facility was extended 3-months and is now maturing on January 26, 2022.

(3) Subsequent to December 31, 2020, this facility was amended to increase the total facility size to $3,000,000 with $500,000 committed.

(4) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.

(5) This facility will have an overall line size of $3,000,000, which will be reviewed every 90 days. This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.

(6) The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value as the first priority security interest.

(7) The interest rates charged by lenders of the funding facilities ranged from 0.40% to 2.30%, plus the applicable base rate, for the twelve months ended December 31, 2020 and for the year ended December 31, 2019.

Schedule of Other Financing Facilities

Other Financing Facilities


Facility Type	Collateral	Maturity	Line Amount		Committed Line Amount		Outstanding Balance December 31, 2020		Outstanding Balance December 31, 2019
Line of Credit Financing Facilities
1) Unsecured line of credit(1)(6)	—	7/27/2025	$	2,000,000	$	—	$	—	$	—
2) Unsecured line of credit(2)(6)	—	(2)	—		—		—		90,000
3) Unsecured line of credit(3)	—	7/31/2025	100,000		—		—		—
4) Revolving credit facility	—	8/10/2023	1,000,000		1,000,000		300,000		—
5) MSR line of credit(7)	MSRs	10/22/2021	200,000		—		—		—
6) MSR line of credit(4)(7)	MSRs	(4)	200,000		200,000		75,000		75,000
			$	3,500,000	$	1,200,000	$	375,000	$	165,000
Early Buyout Financing Facility
7) Early buy out facility(5)(8)	Loans/ Advances	6/9/2021	$	500,000	$	—	$	330,266	$	196,247