The nation’s biggest mortgage lender is making a play to build its business by partnering with thousands of banks and credit unions that are too small to run their own mortgage operations.

Rocket Mortgage is partnering with Salesforce to make its mortgage origination technology available as an end-to-end “mortgage-as-a-service” to any lender with licensed mortgage loan officers through Salesforce Financial Services Cloud.

“The market opportunity is significant, as there are nearly 5,000 FDIC-insured banks and more than 5,000 credit unions in the U.S.,” the company said in announcing the move. “While some have highly specialized mortgage operations, most have disparate partners and technology vendors that handle home loans for them.”

Loan officers will be able to use Rocket Mortgage’s technology as their point-of-sale (POS) and loan origination system (LOS) — in many cases without the need for underwriters, processors, compliance or closing teams, with Rocket Mortgage handling processing of the loans.

Rocket Mortgage says it will offer its technology to banks and credit unions, “regardless of how the financial institution chooses to offer mortgages, simplifying a potentially fragmented process.”

Jay Farner

“We recognize the important and personal role local banks and credit unions play with so many Americans – they have a trusted relationship with their customers,” Rocket Companies CEO Jay Farner said in a statement. “Financial institutions can now combine those relationships they’ve already established, while leveraging Rocket Mortgage’s transformational platform powered by Rocket technology.”

Another option for smaller banks and credit unions is to form joint ventures with mortgage lenders.

Farm Bureau Bank, a federally chartered savings bank that provides services to 5 million members in 45 states, this year entered into a joint venture with loanDepot, Farm Bureau Mortgage.

Farm Bureau Bank CEO William Hileman cited loanDepot’s technology as a factor in the deal, saying it “ensures a seamless and straightforward transaction” that will enable Farm Bureau members “to achieve their dreams of homeownership on their terms.”

Farm Bureau Bank had previously referred mortgage borrowers to Cornerstone Home Lending, which provided loans in 16 states.

In reporting record second quarter purchase loan volume, Rocket Mortgage cited growth in its partner channel, which includes mortgage brokers, community banks and credit unions. Loans originated through Rocket Mortgage’s partner network totaled $38.5 billion during the three months ending June 30, up 45 percent from a year ago. Rocket’s direct-to-consumer originations were essentially flat at $45.2 billion.

Email Matt Carter

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×