Rocket Mortgage is partnering with Compass to share listings on Redfin, in a major deal which also includes pricing promotions.
The companies Thursday announced a 3-year partnership for Compass to share its "Coming Soon" and "Private Exclusive" listings to Redfin, which they said could bring over 500,000 more listings on Redfin. Rocket offerings will also be embedded on Compass' platform.
Rocket's promotions for Compass clients include either a 1 percentage point interest rate deduction for the first year of a loan, or a lender credit of $6,000. Separately, Rocket broker partners can access a Pro Purchase Power promotion to get an 80 basis point credit when working with a Compass buyer's agent.
Compass will also access more than 1 million buyer inquiries through Redfin. Rocket executives lauded their new real estate partner, which counts hundreds of thousands of real estate agents under its massive umbrella following
"They're the most innovative, they're the largest, they're growing," Austin Niemiec, chief revenue officer and head of Rocket Pro, told National Mortgage News. "And we like to think not only are we large, we're also very, very innovative. So it was a perfect match."
Rocket Mortgage President and CEO Jay Bray said the 3-year deal will allow the companies time to integrate, and he anticipates the partnership to be extended. The company, which disclosed its fourth quarter earnings Thursday afternoon, will discuss the additional volume from the deal in future earnings, he added.
Bray also downplayed any regulatory concerns regarding the Compass deal, clarifying that the partnership was not a joint venture. Rocket is one of several major players facing pending class action complaints that it
"From a RESPA standpoint, we feel very confident that we don't have any issues there," Bray told NMN. "We always use advisors and attorneys. But we don't see any issues from a RESPA standpoint."
Compass Chairman and CEO Robert Reffkin in a statement Thursday touted the deal and reiterated how sellers should have freedom in how they list their homes, referring to Compass' listing options. The listing giant is
The Rocket-owned Redfin is also fighting an
Broker promotions
Rocket Pro rolled out
The lender debuted its Jupiter loan origination system, a free platform which offers a streamlined workflow for brokers. Users can download the Uniform Residential Loan Application they complete and send it to Rocket Pro or to another lender, although keeping the loan with Rocket allows for continued status updates.
Jupiter also features cybersecurity compliance standards and doesn't force brokers to share their clients with Rocket Pro, according to Carter Zimmerman, president of Rocket-owned Lendesk, in a presentation Thursday.
Bray and Niemiec pointed to Thursday's announcements as evidence of Rocket's commitment to
"It shows the power of Rocket," said Bray. "We have the strongest brand, we have the strongest financial position. That allows us to invest."
