Rocket Companies, Inc.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
RKT$15.06+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001628280-26-054577
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001628280-26-068434
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 168 previous paragraphs and 174 current paragraphs.
103 unchanged; 54 reworded; 17 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Home affordability remained challenged in the third quarter of 2026 as the 30-year fixed mortgage rate rose over 80 basis points, from 6.43% in early July to 7.28% at the end of September, the highest rate since late 2023. Several developments drove the increase. Inflation was above the Federal Reserve’s 2% target, due in part to higher energy prices associated with the ongoing conflict in the Middle East, while spending on AI infrastructure added to inflationary pressures. On September 16, the Federal Reserve raised the federal funds target range by 25 basis points to a range of 3.75% to 4.00%, its first increase since July 2023. The rate increase, along with greater government and corporate borrowing that increased debt supply relative to demand, contributed to a sharp 80 basis point increase in the 10-year Treasury yield to 5.3%, the highest level since 2002.
Current report
Higher interest rates impacted both purchase and refinance activity. Existing home sales fell below a 4-million-unit annualized pace, and mortgage applications softened over the course of the quarter. These factors contributed to a smaller mortgage market in the third quarter compared to the second quarter.
Current report
(1) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, cost to service per loan, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Current report
(3) The three and nine months ended September 30, 2025 exclude share-based compensation expense related to the Redfin Acquisition, which is included in Acquisition-related expenses.
Current report
(4) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, cost to service per loan, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Current report
(3) The three and nine months ended September 30, 2025 exclude share-based compensation expense related to the Redfin Acquisition, which is included in Acquisition-related expenses.
Current report
(4) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, cost to service per loan, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Current report
(5) Actual prepayment speed represents the percentage of the unpaid principal balance of loans in the mortgage servicing portfolio that were voluntarily or involuntarily paid ahead of their scheduled amortization during the nine months ended September 30, 2026 and 2025.
Current report
(6) Units presented as of period end.
Current report
Gain on sale of loans, net was $1.0 billion, relatively flat compared to 2025.
Current report
Loan servicing income (loss), net
Current report
MSRs and Subservicing Portfolio
Current report
(1) Includes real estate brokerage services revenue, real estate referral services revenue, and Zillow partnership revenue.
Current report
(2) Includes all title and settlement services.
Current report
Total expenses during the period were $2.3 billion, an increase of $446 million, or 24%, compared to 2025. General and administrative expenses were $559 million, an increase of $204 million, compared to $355 million in 2025, primarily driven by an increase in Acquisition-related expenses, as well as increased expenses associated with our larger servicing business driven by the Mr. Cooper Acquisition. Interest expense was $359 million, an increase of $124 million, compared to $235 million in 2025, primarily due to the interest associated with the secured facilities assumed in the Mr. Cooper Acquisition in the fourth quarter of 2025. Depreciation and amortization expenses were $147 million, an increase of $68 million, compared to $79 million in 2025, due to an increase in amortization of intangible assets associated with the Mr. Cooper Acquisition.
Current report
Interest expense increased due to the secured facilities assumed in the Mr. Cooper Acquisition in the fourth quarter of 2025. Higher General and administrative expenses were driven by Acquisition-related expenses, as well as expenses associated with the larger average servicing portfolio during 2026.
Current report
• servicing and subservicing fee income;
Removed paragraphs (11)
Previous report
In the second quarter of 2026, the ongoing conflict in the Middle East contributed to higher energy prices and renewed inflation concerns. At its April and June meetings, the Federal Reserve maintained the federal funds target range at 3.50% to 3.75%. However, market expectations shifted away from anticipating rate cuts and moved towards anticipating potential rate increases. Alongside this shift, in its June Summary of Economic Projections, the Federal Reserve raised its projections for inflation and the 2026 year-end federal funds rate.
Previous report
The 10-year Treasury yield increased during the quarter, while the 30-year fixed mortgage rate remained elevated and volatile, declining in April before increasing in May and remaining near 6.5% through the end of the quarter. Improving labor market conditions and wage growth provided some support to the housing market, but this was counteracted by elevated mortgage rates and continued affordability challenges. These conditions weighed on purchase and refinance activity and resulted in a muted spring homebuying season.
Previous report
(1) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Previous report
(3) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Previous report
(3) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Previous report
Gain on sale of loans, net was $1.2 billion, an increase of $389 million, or 48%, compared to $816 million in 2025, primarily driven by an increase in mortgage production.
Previous report
Loan servicing income, net
Previous report
MSR and Subservicing Portfolio
Previous report
Total expenses during the period were $2.5 billion, an increase of $1.1 billion, or 75%, compared to 2025. Salaries, commissions and team member benefits were $1.1 billion, an increase of $427 million, or 69%, compared to $623 million, primarily due to increased variable compensation driven by higher origination volume, as well as expenses associated with additional team members from the Acquisitions. General and administrative expenses were $568 million, an increase of $281 million, compared to $287 million in 2025, primarily driven by Acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume. Interest expense was $374 million, an increase of $219 million, compared to $155 million in 2025, driven by the senior notes issued and assumed in 2025, as well as increased utilization of mortgage loan funding facilities associated with higher origination volume. Depreciation and amortization expenses were $145 million, an increase of $118 million, compared to $27 million in 2025, due to an increase in amortization of intangible assets associated with the Acquisitions.
Previous report
Interest expense increased due to the senior notes issued and assumed in 2025, as well as increased utilization of mortgage loan funding facilities associated with higher origination volume. The increase in Salaries, commissions and team member benefits was due to variable compensation associated with higher origination volume, as well as expenses associated with additional team members from the fourth quarter 2025 acquisition of Mr. Cooper. Higher General and administrative expenses were driven by acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume.
Previous report
• servicing fee income;
Reworded paragraphs (54)
Previous wording
We generated $49.1 billion in total closed mortgage loan origination volume, an increase of $20.1 billion, or 69%, compared to $29.1 billion in 2025. Our Net income for the period was $229 million, an increase of $195 million, compared to Net income of $34 million in 2025. We generated Adjusted EBITDA of $766 million, an increase of $594 million, compared to $172 million in 2025. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Current wording
We generated $43.6 billion in total closed mortgage loan origination volume, an increase of $11.2 billion, or 35%, compared to $32.4 billion in 2025. Our Net income for the period was $709 million, an increase of $833 million, compared to Net loss of $124 million in 2025. We generated Adjusted EBITDA of $748 million, an increase of $399 million, compared to $349 million in 2025. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Previous wording
We generated $93.8 billion in total closed mortgage loan origination volume, an increase of $43.1 billion, or 85%, compared to $50.6 billion in 2025. Our Net income for the period was $526 million, an increase of $704 million, compared to a Net loss of $178 million in 2025. We generated Adjusted EBITDA of $1.5 billion, an increase of $1.2 billion, compared to $342 million in 2025. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Current wording
We generated $137.4 billion in total closed mortgage loan origination volume, an increase of $54.3 billion, or 65%, compared to $83.1 billion in 2025. Our Net income for the period was $1.2 billion, an increase of $1.5 billion, compared to a Net loss of $302 million in 2025. We generated Adjusted EBITDA of $2.3 billion, an increase of $1.6 billion, compared to $690 million in 2025. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Previous wording
We define “Adjusted revenue” as Total revenue, net of the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges). We define “Adjusted net income” as Tax-effected Net income (loss) before Share-based compensation expense, the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual, Other adjustments and Tax impact of adjustments as applicable. We define “Adjusted diluted earnings per share” as Adjusted net income divided by the Adjusted diluted weighted average shares outstanding which includes Diluted weighted average Participating Common Stock outstanding and the Assumed pro forma conversion of Class D shares for the applicable period presented. We define “Adjusted EBITDA” as Net income (loss) before Bond interest expense, Provision for (benefit from) income taxes, Depreciation and amortization, Share-based compensation expense, Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual and Other adjustments.
Current wording
We define “Adjusted revenue” as Total revenue, net of the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges). We define “Adjusted net income” as Tax-effected Net income (loss) before Share-based compensation expense, the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual, Tax impact of adjustments, and Other adjustments as applicable. We define “Adjusted diluted earnings per share” as Adjusted net income divided by the Adjusted diluted weighted average shares outstanding which includes Diluted weighted average Participating Common Stock outstanding and the Assumed pro forma conversion of Class D shares for the applicable period presented. We define “Adjusted EBITDA” as Net income (loss) before Bond interest expense, Provision for (benefit from) income taxes, Depreciation and amortization, Share-based compensation expense, Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual and Other adjustments.
Previous wording
(1) Reflects net income (loss) to Class A common shares from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders during the periods ended June 30, 2025. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
Current wording
(1) Reflects net loss to Class A common shares from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders during the nine months ended September 30, 2025. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
Previous wording
(4) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as professional service fees (including integration costs), and severance expense.
Current wording
(5) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as integration costs (including professional service fees), debt financing fees related to the Bridge Facility and severance expense (including accelerated share-based compensation).
Previous wording
(8) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the historical purchases of Holdings Units, net of payment obligations under the TRA and change in equity investments.
Current wording
(9) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the historical purchases of Holdings Units, net of payment obligations under the TRA, change in equity investments and change in Tax receivable agreement liability.
Previous wording
(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common shares to Class A common shares. For the three and six months ended June 30, 2025, Class D common shares were anti-dilutive and are excluded from the Diluted weighted average Participating Common Stock outstanding in the table above. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
Current wording
(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common shares to Class A common shares. For the nine months ended September 30, 2025, Class D common shares were anti-dilutive and are excluded from the Diluted weighted average Participating Common Stock outstanding in the table above. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
Previous wording
(2) The three and six months ended June 30, 2026 exclude the impact of amortization of acquired intangible assets, which is included as a separate adjustment line.
Current wording
(2) Excludes the impact of amortization of intangible assets related to the Acquisitions, which is included as a separate adjustment line.
Previous wording
(4) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as professional service fees (including integration costs), and severance expense.
Current wording
(5) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as integration costs (including professional service fees), debt financing fees related to the Bridge Facility and severance expense (including accelerated share-based compensation).
Previous wording
(7) Reflects change in equity investments, as well as changes in estimates of tax rates and other variables of the Tax receivable agreement liability.
Current wording
(8) Reflects change in equity investments and change in Tax receivable agreement liability.
Previous wording
We operate other businesses that include Rocket Close (title and closing), Rocket Money (personal financial management), Redfin (real estate brokerage), and Rocket Loans (personal loans). Each of these businesses operate distinct business models and have unique operating metrics.
Current wording
We operate other businesses that include Rocket Close (title and closing), Rocket Money (personal financial management), Redfin (real estate brokerage), and Rocket Loans (personal loans). Each of these businesses operates a distinct business model and has unique operating metrics.
Previous wording
(3)MSR fair market value multiple is a metric used to determine the relative value of the MSR asset in relation to the annualized retained servicing fee, which is the cash that the holder of the MSR asset would receive from the portfolio as of such date. It is calculated as the quotient of (a) the MSR fair market value as of a specified date divided by (b) the weighted average annualized retained servicing fee for our MSR portfolio as of such date. The weighted average annualized retained servicing fee for our MSR portfolio was 0.29% and 0.28% as of June 30, 2026 and 2025, respectively. The vast majority of our portfolio consists of originated MSRs and consequently, the impact of purchased MSRs does not have a material impact on our weighted average service fee.
Current wording
(3)MSR fair value multiple represents the relative value of the MSR asset in relation to the annualized retained servicing fee, which is the cash that the holder of the MSR asset would receive from the portfolio as of such date. It is calculated as the quotient of (a) the MSR fair market value as of a specified date divided by (b) the weighted average annualized retained servicing fee for our MSR portfolio as of such date. The weighted average annualized servicing fee for our MSR portfolio was 0.29% and 0.28% as of September 30, 2026 and 2025, respectively.
Previous wording
Our sources of revenue include Gain on sale of loans, net, Loan servicing income, net, Interest incomeand Other income.
Current wording
Our sources of revenue include Gain on sale of loans, net, Loan servicing income (loss), net, Interest incomeand Other income.
Previous wording
Our operating expenses as presented in the Condensed Statement of Operations Data include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses, Interest expense, Depreciation and amortization, and Other expenses.
Current wording
Our operating expenses as presented in the Summary of Operations include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses, Interest expense, Depreciation and amortization, and Other expenses.
Previous wording
At the time an IRLC is issued, an estimate of the Gain on sale of loans, net is recognized in the Unrealized change in fair value of the Pipeline component in the table above. Subsequent changes in the fair value of IRLCs and MLHFS are recognized in this same component as the loan progresses through closing, which is when the IRLC moves to a MLHFS (where it remains until sold into the secondary market). The goal of our Pipeline hedge strategy is to mitigate the impact of interest rate changes from the point of the IRLC through the sale of the loan. The Unrealized change in fair value of IRLCs and MLHFS each period is dependent on several factors, including mortgage origination volume, duration of the Pipeline, and movement of interest rates during that period as compared to the immediately preceding period. Loans originated during an increasing rate environment generally decrease in value and loans originated during a decreasing rate environment generally increase in value. 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 as a realized gain on sale and moves from the Unrealized change in fair value of the Pipeline component, to the Net gain on sale of loans component in the table above. The component Realized and unrealized change in fair value related to the Pipeline hedges is intended to economically hedge (or offset) the various fair value adjustments that impact the Unrealized change in fair value of the Pipeline and the Net gain on sale of loans components. As a result, these three components should be evaluated in combination when evaluating Gain on sale of loans, net, as the sum of these components are primarily driven by net rate lock volume. Furthermore, at the point of sale of the loan, the Fair value of originated MSRs and the Benefit from (provision for) investor reserves are recognized each in their respective components shown above.
Current wording
At the time an IRLC is issued, an estimate of the Gain on sale of loans, net is recognized in the Unrealized change in fair value of the Pipeline component in the table above. Subsequent changes in the fair value of IRLCs and MLHFS are recognized in this same component as the loan progresses through closing, which is when the IRLC moves to a MLHFS (where it remains until sold into the secondary market). The goal of our Pipeline hedge strategy is to mitigate the impact of interest rate changes from the point of the IRLC through the sale of the loan. The Unrealized change in fair value of IRLCs and MLHFS each period is dependent on several factors, including mortgage origination volume, duration of the Pipeline, and movement of interest rates during that period as compared to the immediately preceding period. Loans originated during an increasing rate environment generally decrease in value and loans originated during a decreasing rate environment generally increase in value. 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 as a realized gain on sale and moves from the Unrealized change in fair value of the Pipeline component, to the Net (loss) gain on sale of loans component in the table above. The component Realized and unrealized change in fair value related to the Pipeline hedges is intended to economically hedge (or offset) the various fair value adjustments that impact the Unrealized change in fair value of the Pipeline and the Net (loss) gain on sale of loans components. As a result, these three components should be evaluated in combination when evaluating Gain on sale of loans, net, as the sum of these components are primarily driven by net rate lock volume. Furthermore, at the point of sale of the loan, the Fair value of originated MSRs and the Provision for investor reserves are recognized each in their respective components shown above.
Previous wording
Net gain on sale of loans, Unrealized change in fair value of the Pipeline, and Realized and unrealized change in fair value of Pipeline hedges was $1.1 billion, an increase of $155 million, or 16%, compared to $983 million in 2025. The change was primarily driven by an increase in net rate lock volume, offset by a mix shift to Correspondent in the current period.
Current wording
Net gain on sale of loans, Unrealized change in fair value of the Pipeline, and Realized and unrealized change in fair value of Pipeline hedges was $303 million, a decrease of $341 million, or 53%, compared to $644 million in 2025. This decrease was primarily driven by a mix shift to Correspondent.
Previous wording
The Fair value of originated MSRs was $759 million, an increase of $416 million, compared to $343 million in 2025. The change was driven by the increase in sold loan volume and MSR fair value multiple, as well as a mix shift to Correspondent in the current period.
Current wording
The Fair value of originated MSRs was $726 million, an increase of $340 million, compared to $386 million in 2025. The change was primarily driven by the increase in sold loan volume and MSR fair value multiple in the current period.
Previous wording
The Investor reserves liability balance was relatively flat in the current and prior period. The Provision for investor reserves was $4 million, comparable to $3 million, in 2025.
Current wording
The Investor reserves liability balance was relatively flat in the current and prior period. The Provision for investor reserves was $1 million, comparable to $3 million in 2025.
Previous wording
Gain on sale of loans, net was $2.6 billion, an increase of $1.0 billion, or 63%, compared to $1.6 billion in 2025, primarily driven by an increase in mortgage production.
Current wording
Gain on sale of loans, net was $3.6 billion, an increase of $1.0 billion, or 38%, compared to $2.6 billion in 2025, primarily driven by an increase in mortgage production.
Previous wording
Net gain on sale of loans, Unrealized change in fair value of the Pipeline, and Realized and unrealized change in fair value of Pipeline hedges was $444 million, a decrease of $28 million, or 6%, compared to $472 million in 2025. This decrease was primarily driven by a mix shift to Correspondent, offset by an increase in net rate lock volume in the current period.
Current wording
Net gain on sale of loans, Unrealized change in fair value of the Pipeline, and Realized and unrealized change in fair value of Pipeline hedges was $1.4 billion, a decrease of $186 million, or 11%, compared to $1.6 billion in 2025. This decrease was primarily driven by a mix shift to Correspondent, partially offset by an increase in net rate lock volume in the current period.
Previous wording
The Fair value of originated MSRs was $1.4 billion, an increase of $839 million, compared to $608 million in 2025. The change was driven by the increase in sold loan volume and MSR fair value multiple, as well as a mix shift to Correspondent in the current period.
Current wording
The Fair value of originated MSRs was $2.2 billion, an increase of $1.2 billion, compared to $994 million in 2025. The change was driven by the increase in sold loan volume and MSR fair value multiple in the current period.
Previous wording
The Investor reserves liability balance was relatively flat in the current and prior period. The Benefit from investor reserves was $2 million, comparable to $1 million in 2025.
Current wording
The Investor reserves liability balance was relatively flat in the current and prior period. The Provision for investor reserves was $5 million, comparable to $6 million, in 2025.
Previous wording
For the periods presented, Loan servicing income, net consisted of the following:
Current wording
For the periods presented, Loan servicing income (loss), net consisted of the following:
Previous wording
Loan servicing income, net was $450 million, an increase of $248 million, compared to $202 million in 2025, due to the $665 million increase in Servicing fee income resulting from the larger average portfolio size during 2026, partially offset by the decrease in Change in fair value of MSRs, net.
Current wording
Loan servicing income, net was $1.2 billion, an increase of $1.3 billion, compared to Loan servicing loss, net of $67 million in 2025, due to the $619 million increase in Servicing fee income resulting from the larger average portfolio size during 2026, as well as the $636 million increase in Change in fair value of MSRs, net.
Previous wording
The $417 million decrease in Change in fair value of MSRs, net was primarily driven by the Collection / realization of cash flows due to the larger average portfolio size during 2026. The Change in valuation model inputs or assumptions for MSRs and related liabilities was mostly offset by the Change in fair value of MSR hedge. In 2026, the Change in valuation model inputs or assumptions for MSRs and related liabilities was a $70 million increase, compared to a decrease of $25 million in 2025. This change was driven by an increase in interest rates during the second quarter of 2026, compared to a decrease in the same period in 2025.
Current wording
The $636 million increase in Change in fair value of MSRs, net was primarily driven by the increase in Change in valuation model inputs or assumptions for MSRs and related liabilities, partially offset by the Change in fair value of MSR hedge and the Collection/realization of cash flows. The increase in the Change in valuation model inputs or assumptions for MSRs and related liabilities and the decrease in Change in fair value of MSR hedge were primarily due to the increase in interest rates during the third quarter of 2026, compared to a decrease in the same period in 2025. The change in Collection/realization of cash flows was driven by the larger average portfolio size during 2026.
Previous wording
Loan servicing income, net was $1.0 billion, an increase of $894 million, compared to $154 million in 2025, primarily due to the $1.3 billion increase in Servicing fee income resulting from the larger average portfolio size during 2026, partially offset by the $453 million decrease in Change in fair value of MSRs, net.
Current wording
Loan servicing income, net was $2.2 billion, an increase of $2.1 billion, compared to $87 million in 2025, primarily due to the $2.0 billion increase in Servicing fee income resulting from the larger average portfolio size during 2026, as well as the $183 million increase in Change in fair value of MSRs, net.
Previous wording
The $453 million decrease in Change in fair value of MSRs, net was primarily driven by Collection / realization of cash flows due to the larger average portfolio size during 2026, partially offset by the Change in valuation model inputs or assumptions for MSRs and related liabilities and Change in fair value of MSR hedge. In 2026, the Change in valuation model inputs or assumptions for MSRs and related liabilities was a $349 million increase, compared to a decrease of $286 million in 2025. This change was driven by an increase in interest rates during the current period, compared to a decrease in the same period in 2025.
Current wording
The $183 million increase in Change in fair value of MSRs, net was primarily driven by the increase in Change in valuation model inputs or assumptions for MSRs and related liabilities, partially offset by the Change in fair value of MSR hedge and Collection/realization of cash flows. The increase in Change in valuation model inputs or assumptions for MSRs and related liabilities, and decrease in Change in fair value of MSR hedge were primarily due to the increase in interest rates during the 2026 period, compared to a decrease in the same period in 2025. The change in Collection/realization of cash flows was driven by the larger average portfolio size during 2026.
Previous wording
The following table summarizes changes to MSR and subservicing and other portfolio UPB:
Current wording
The following table summarizes changes to MSRs and subservicing and other portfolio UPB:
Previous wording
(1) Amount for Subservicing and Other UPB includes transfers from MSR for MSRs sold with subservicing rights retained.
Current wording
(1) Amount for Subservicing and Other UPB includes transfers from MSRs for MSRs sold with subservicing rights retained.
Previous wording
(2) Amount for MSR UPB includes transfers to Subservicing and Other for MSRs sold with subservicing rights retained.
Current wording
(2) Amount for MSRs UPB includes transfers to Subservicing and Other for MSRs sold with subservicing rights retained.
Previous wording
The following table provides a rollforward of MSR and subservicing and other portfolio UPB:
Current wording
The following table provides a rollforward of MSRs and subservicing and other portfolio UPB:
Previous wording
(1) Amount for Subservicing and Other UPB includes transfers from MSR for MSRs sold with subservicing rights retained.
Current wording
(1) Amount for Subservicing and Other UPB includes transfers from MSRs for MSRs sold with subservicing rights retained.
Previous wording
(2) Amount for MSR UPB includes transfers to Subservicing and Other for MSRs sold with subservicing rights retained.
Current wording
(2) Amount for MSRs UPB includes transfers to Subservicing and Other for MSRs sold with subservicing rights retained.
Previous wording
Interest income was $583 million, an increase of $346 million, compared to $237 million in 2025. The increase was primarily driven by custodial deposit income associated with our larger average servicing portfolio in 2026, as well as higher mortgage loan origination volume.
Current wording
Interest income was $550 million, an increase of $260 million, compared to $290 million in 2025. The increase was primarily driven by custodial deposit income associated with our larger average servicing portfolio in 2026, as well as higher mortgage loan origination volume.
Previous wording
Interest income was $1.1 billion, an increase of $652 million, compared to $438 million in 2025. The increase was primarily driven by custodial deposit income associated with our larger average servicing portfolio in 2026, as well as higher mortgage loan origination volume.
Current wording
Interest income was $1.6 billion, an increase of $912 million, compared to $728 million in 2025. The increase was primarily driven by custodial deposit income associated with our larger average servicing portfolio in 2026, as well as higher mortgage loan origination volume.
Previous wording
Other income was $546 million, an increase of $350 million, compared to $196 million in 2025, primarily driven by a $246 million increase in Real estate services revenue from incremental real estate transactions associated with Redfin. Additionally, there was a $44 million increase in Rocket Close revenue, driven by higher mortgage loan origination volume, and a $20 million increase in Rocket Money revenue associated with growth in paying subscribers.
Current wording
Other income was $518 million, an increase of $73 million, compared to $445 million in 2025, primarily due to a $26 million increase in Rocket Money revenue associated with growth in paying subscribers and an $11 million increase in Rocket Close revenue, driven by higher mortgage loan origination volume.
Previous wording
Other income was $1.0 billion, an increase of $633 million, compared to $373 million in 2025, driven by a $428 million increase in Real estate services revenue from incremental real estate transactions associated with Redfin. Additionally, there was a $108 million increase in Rocket Close revenue, driven by higher mortgage loan origination volume, and a $42 million increase in Rocket Money revenue associated with growth in paying subscribers.
Current wording
Other income was $1.5 billion, an increase of $706 million, compared to $818 million in 2025, driven by a $436 million increase in Real estate services revenue from incremental real estate transactions from Redfin. Additionally, there was a $119 million increase in Rocket Close revenue, driven by higher mortgage loan origination volume, and a $68 million increase in Rocket Money revenue associated with growth in paying subscribers.
Previous wording
Total expenses during the period were $5.0 billion, an increase of $2.3 billion, or 83%, compared to 2025. Salaries, commissions and team member benefits were $2.1 billion, an increase of $896 million, or 73%, compared to $1.2 billion, largely due to an increase in variable compensation driven by higher origination volume, as well as expenses associated with additional team members from the Acquisitions. General and administrative expenses were $1.1 billion, an increase of $555 million, compared to $548 million in 2025, primarily driven by Acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume. Interest expense was $723 million, an increase of $459 million, compared to $264 million in 2025, driven by the senior notes issued and assumed in 2025, as well as increased utilization of mortgage loan funding facilities associated with higher origination volume. Depreciation and amortization expenses were $291 million, an increase of $237 million, compared to $54 million in 2025, due to an increase in amortization of intangible assets associated with the Acquisitions.
Current wording
Total expenses during the period were $7.4 billion, an increase of $2.7 billion, or 59%, compared to 2025. Salaries, commissions and team member benefits were $3.1 billion, an increase of $956 million, or 45%, compared to $2.1 billion, largely due to an increase in variable compensation driven by higher origination volume, as well as expenses associated with additional team members from the Acquisitions. General and administrative expenses were $1.7 billion, an increase of $759 million, compared to $903 million in 2025, primarily driven by variable costs associated with an increase in origination volume, increased expenses associated with our larger servicing business driven by the Mr. Cooper Acquisition, and an increase in Acquisition-related expenses during 2026. Interest expense was $1.1 billion, an increase of $583 million, compared to $499 million in 2025, driven by interest and amortization associated with the senior notes issued in June 2025 and the secured facilities assumed in the Mr. Cooper Acquisition, as well as increased utilization of mortgage loan funding facilities associated with higher origination volume. Depreciation and amortization expenses were $438 million, an increase of $305 million, compared to $133 million in 2025, due to an increase in amortization of intangible assets associated with the Acquisitions.
Previous wording
Beginning in the second quarter of 2026, the Company has one reportable segment, Mortgage. The discussion of results below reflects the new segment reporting structure, with prior-period information recast for comparability. For additional discussion, see Note 13, Segments of the notes to the Condensed Consolidated Financial Statements of this Form 10-Q.
Current wording
The discussion of results below reflects Mortgage, the Company’s one reportable segment, which was introduced in the second quarter of 2026. Prior-period information has been recast for comparability. For additional discussion, refer to Note 13, Segments of the notes to the Condensed Consolidated Financial Statements of this Form 10-Q.
Previous wording
The CODM uses Contribution margin as the measure of profit or loss to assess performance and allocate resources to each segment. Contribution margin represents Total revenue, net, adjusted for the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges) less Directly attributable expenses. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses, Interest expense and Other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services). See below for our overview and discussion of segment results for the three and six months ended June 30, 2026 and 2025.
Current wording
The CODM uses Contribution margin as the measure of profit or loss to assess performance and allocate resources to each segment. Contribution margin represents Total revenue, net, adjusted for the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges) less Directly attributable expenses. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses, Interest expense and Other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services). See below for our overview and discussion of segment results for the three and nine months ended September 30, 2026 and 2025.
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