Rocket Mortgage's Strategic Shift

Rocket Mortgage is adapting its strategy by focusing on acquiring servicing rather than selling it, which marks a significant change from previous years. The company is leveraging advanced technology, including AI, to enhance productivity and scale operations without increasing fixed costs, which positions them favorably within the mortgage industry. CEO Varun Krishna highlighted that despite reducing staff by 7%, their productivity has improved, allowing them to handle substantial origination volumes. This strategic approach enables Rocket to maintain a strong cash position and capitalize on opportunities that other competitors may not be able to pursue, especially smaller independent mortgage banks (IMBs) facing liquidity challenges.