ROCKET COMPANIES, INC. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations (type 10-Q)

The next administration's dialogue and evaluation of our monetary situation
and outcomes of operations must be learn along with, and is certified
in its entirety by reference to, our unaudited condensed consolidated monetary
statements and the associated notes and different data included elsewhere in
this Quarterly Report on Type 10-Q (the "Type 10-Q") and our audited
consolidated monetary statements included in our Annual Report on Type 10-Okay
(the "Type 10-Okay") filed with the Securities and Change Fee (the "SEC").
This dialogue and evaluation accommodates forward-looking statements that contain
dangers and uncertainties which may trigger our precise outcomes to vary
materially from these anticipated in these forward-looking statements,
together with, however not restricted to, dangers and uncertainties mentioned underneath the
heading "Particular Word Relating to Ahead-Wanting Statements," and in Half I. Merchandise
1A. "Threat Components" in our Type 10-Okay and in our Type 10-Q for the fiscal quarter
ended March 31, 2022 (Q1 2022 Type 10-Q) and elsewhere on this Type 10-Q and in
our Type 10-Okay.

Particular Word Relating to Ahead-Wanting Statements

This Type 10-Q accommodates forward-looking statements, which contain dangers and
uncertainties. These forward-looking statements are usually recognized by the
use of forward-looking terminology, together with the phrases "anticipate," "imagine,"
"may," "estimate," "anticipate," "intend," "could," "plan," "potential," "predict,"
"undertaking," "ought to," "goal," "will," "would" and, in every case, their adverse
or different numerous or comparable terminology. All statements apart from statements
of historic details contained on this Type 10-Q, together with statements concerning
our technique, future operations, future monetary place, future income,
projected prices, prospects, plans, goals of administration and anticipated market
progress are forward-looking statements. As you learn this Type 10-Q, it is best to
perceive that these statements are usually not ensures of efficiency or outcomes.
They contain recognized and unknown dangers, uncertainties and assumptions, together with
these described underneath the heading "Threat Components" on this Type 10-Q. Though we
imagine that these forward-looking statements are based mostly upon affordable
assumptions, you ought to be conscious that many components, together with these described
underneath the heading "Threat Components" on this Type 10-Q, may have an effect on our precise
monetary outcomes or outcomes of operations and will trigger precise outcomes to
differ materially from these within the forward-looking statements.

Our forward-looking statements made herein are made solely as of the date of this
Type 10-Q. We expressly disclaim any intent, obligation or enterprise to replace
or revise any forward-looking statements made herein to replicate any change in
our expectations with regard thereto or any change in occasions, circumstances or
circumstances on which any such statements are based mostly. All subsequent written and
oral forward-looking statements attributable to us or individuals appearing on our
behalf are expressly certified of their entirety by the cautionary statements
contained on this Type 10-Q.

Goal

The next dialogue gives an evaluation of the Firm's monetary
situation, money flows and outcomes of operations from administration's perspective
and must be learn along with the consolidated monetary statements and
notes thereto included in Half I, Merchandise 1 of this Quarterly Report on Type 10-Q.
Our goal is to supply a dialogue of occasions and uncertainties recognized to
administration which are fairly prone to trigger the reported monetary
data to not be indicative of future working outcomes or of future
monetary situation and to additionally provide data that gives an understanding
of our monetary situation, money flows and outcomes of operations.

Govt Abstract

We're a Detroit-based FinTech holding firm consisting of tech-driven actual
property, mortgage and monetary providers companies - together with Rocket Mortgage,
Rocket Dwelling, Rocket Auto and Rocket Cash (previously referred to as Truebill). We're
dedicated to offering an industry-leading consumer expertise powered by our
easy, quick and trusted digital options. Along with Rocket Mortgage, one
of the nation's largest mortgage lenders, we've expanded into complementary
industries, comparable to actual property providers, private lending, auto gross sales, photo voltaic,
and private finance the place we search to ship modern consumer options
leveraging our Rocket platform and being the most effective at creating certainty in
life's most complicated moments in order that our purchasers can dwell their desires.




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Current Developments

Enterprise Developments

The U.S. Federal Reserve has raised the Federal Funds charge a number of instances in
2022 and is anticipated to proceed to lift rates of interest all year long to
mitigate inflationary pressures. The ensuing mortgage rate of interest will increase
has pushed a major decline within the measurement of the mortgage origination market
from 2021 to 2022. The rise in mortgage rates of interest, coupled with
uncertainty within the economic system, have put strain on new mortgage exercise.

Share Repurchase Program

As of November 2, 2022, Rocket Corporations has repurchased 32.1 million shares at
a weighted common value of $12.75. Cumulatively, we've returned $408.8
million to shareholders underneath the $1 billion Share Repurchase Program approved
in November 2020.

Profession Transition Program

As a result of quickly altering mortgage market, throughout the second quarter of 2022
the board of administrators authorized a profession transition program that the Firm
provided to sure eligible crew members. The profession transition program consists of
a compensation package deal, healthcare protection, profession transition providers, and
accelerated vesting of sure fairness awards, if relevant. In consequence, the
Firm incurred costs of $20.1 million and $81.1 million throughout the three and
9 months ended September 30, 2022, respectively.

Three months ended September 30, 2022 abstract

For the three months ended September 30, 2022, we originated $25.6 billion in
residential mortgage loans, which was a $62.5 billion, or 71% lower in contrast
to the three months ended September 30, 2021. Our Internet revenue for the interval was
$96.2 million in comparison with Internet revenue of $1.4 billion. We generated Adjusted
EBITDA lack of $159.7 million which was a lower of $1.7 billion, or 110%,
in comparison with $1.6 billion. For extra data on Adjusted EBITDA, please see
"Non-GAAP Monetary Measures" under.

9 months ended September 30, 2022 abstract

For the 9 months ended September 30, 2022, we originated $114.1 billion in
residential mortgage loans, which was a $161.2 billion, or 59% lower in contrast
to the 9 months ended September 30, 2021. Our Internet revenue for the interval was
$1.2 billion in comparison with Internet revenue of $5.2 billion. We generated $262.9 million
of Adjusted EBITDA, which was a lower of $5.0 billion, or 95%, in comparison with
$5.3 billion. For extra data on Adjusted EBITDA, please see "Non-GAAP
Monetary Measures" under.


Non-GAAP Monetary Measures

To supply traders with data along with our outcomes as decided
by GAAP, we disclose Adjusted Income, Adjusted Internet Revenue (Loss), Adjusted
Diluted Earnings (Loss) Per Share and Adjusted EBITDA (collectively "our
non-GAAP monetary measures") as non-GAAP measures which administration believes
present helpful data to traders. We imagine that the presentation of our
non-GAAP monetary measures gives helpful data to traders concerning
our outcomes of operations as a result of every measure assists each traders and
administration in analyzing and benchmarking the efficiency and worth of our
enterprise. Our non-GAAP monetary measures are usually not calculated in accordance with
GAAP and shouldn't be thought of as an alternative to income, internet revenue, or
another working efficiency measure calculated in accordance with GAAP.
Different corporations could outline our non-GAAP monetary measures in a different way, and as a
outcome, our measures of our non-GAAP monetary measures will not be straight
akin to these of different corporations. Our non-GAAP monetary measures present
indicators of efficiency that aren't affected by fluctuations in sure prices
or different objects. Accordingly, administration believes that these measurements are
helpful for evaluating basic working efficiency from interval to interval, and
administration depends on these measures for planning and forecasting of future
intervals. Moreover, these measures permit administration to check our outcomes
with these of different corporations which have completely different financing and capital
constructions.

We outline "Adjusted Income" as complete revenues internet of the change in truthful worth
of mortgage servicing rights ("MSRs") attributable to valuation assumptions (internet of
hedges). We outline "Adjusted Internet Revenue (Loss)" as tax-effected earnings earlier than
share-based compensation expense, the change in truthful worth of MSRs attributable to
valuation assumptions (internet of hedges), a litigation accrual, profession transition
program, change in Tax receivable settlement legal responsibility, and the tax results of
these changes as relevant. We outline "Adjusted Diluted Earnings (Loss) Per
Share" as Adjusted Internet Revenue (Loss) divided by the diluted weighted common
variety of Class A standard inventory excellent for the relevant interval, which
assumes the professional forma change and conversion of all excellent Class D widespread
inventory for Class A standard inventory. We outline "Adjusted EBITDA" as earnings earlier than
curiosity and amortization expense on non-funding debt, revenue tax, depreciation
and amortization, share-based compensation expense, change in truthful worth of MSRs
attributable to valuation assumptions (internet of hedges), a litigation accrual, profession
transition program, and alter in Tax receivable settlement legal responsibility. We exclude
from every of our non-GAAP monetary measures the change in truthful worth of MSRs
attributable to valuation assumptions (internet of hedges) as this represents a non-cash
non-realized adjustment to our complete revenues, reflecting modifications in assumptions
together with low cost charges and prepayment velocity assumptions, largely attributable to modifications
in market rates of interest, which isn't indicative of our efficiency or outcomes
of operation. We additionally exclude results of contractual prepayment safety
related to gross sales of MSRs. Adjusted EBITDA consists of Curiosity expense on
funding amenities, that are recorded as a part of Curiosity revenue, internet,
as these bills are a direct price pushed by mortgage origination quantity. By
distinction, curiosity and amortization expense on non-funding debt is a perform of
our capital construction and is subsequently excluded from Adjusted EBITDA.

Our definitions of every of our non-GAAP monetary measures permits us so as to add again
sure money and non-cash costs, and deduct sure positive aspects which are included in
calculating Complete revenues, internet, Internet revenue attributable to Rocket Corporations or
Internet revenue. Nevertheless, these bills and positive aspects fluctuate significantly, and are tough to
predict. Every now and then sooner or later, we could embody or exclude different objects
if we imagine that doing so is in step with the objective of offering helpful
data to traders. Within the first and second quarter of 2022, we revised
our definition of Adjusted Internet Revenue (Loss) and Adjusted EBITDA to additionally exclude
the money portion of share-based compensation bills and the profession transition
program, respectively, as these bills don't straight have an effect on what we contemplate
to be our core working efficiency. Comparative intervals introduced to the
extent impacted have been up to date.

Though we use our non-GAAP monetary measures to evaluate the efficiency of our
enterprise, such use is restricted as a result of they don't embody sure materials prices
essential to function our enterprise. Our non-GAAP monetary measures can symbolize
the impact of long-term methods versus short-term outcomes. Our
presentation of our non-GAAP monetary measures shouldn't be construed as an
indication that our future outcomes will probably be unaffected by uncommon or nonrecurring
objects. Our non-GAAP monetary measures have limitations as analytical instruments, and
you shouldn't contemplate them in isolation or as an alternative to evaluation of our
outcomes as reported underneath U.S. GAAP. Due to these limitations, our non-GAAP
monetary measures shouldn't be thought of as measures of discretionary money
out there to us to spend money on the expansion of our enterprise or as measures of money
that will probably be out there to us to fulfill our obligations.




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Limitations to our non-GAAP monetary measures included, however are usually not restricted to:

(a) they don’t replicate each money expenditure, future necessities for capital
expenditures or contractual commitments;

(b) Adjusted EBITDA doesn’t replicate the numerous curiosity expense or the
money necessities essential to service curiosity or principal fee on our
debt;

(c)  though depreciation and amortization are non-cash costs, the belongings
being depreciated and amortized will typically have to get replaced or require
enhancements sooner or later, and Adjusted Income, Adjusted Internet Revenue (Loss) and
Adjusted EBITDA don't replicate any money requirement for such replacements or
enhancements; and

(d) they don’t seem to be adjusted for all non-cash revenue or expense objects which are
mirrored in our Condensed Consolidated Statements of Money Flows.

We compensate for these limitations through the use of our non-GAAP monetary measures
together with different comparative instruments, along with U.S. GAAP measurements, to
help within the analysis of working efficiency. See under for reconciliation
of our non-GAAP monetary measures to their most comparable U.S. GAAP measures.
Moreover, our U.S. GAAP-based measures may be discovered within the condensed
consolidated monetary statements and associated notes included elsewhere on this
Type 10-Q.

Reconciliation of Adjusted Income to Complete Income, internet

                                             Three Months Ended September 30,                 9 Months Ended September 30,
($ in 1000's)                                 2022                    2021                   2022                    2021
Complete income, internet                       $       1,294,686          $ 3,114,730          $      5,357,701          $ 10,321,699
Change in truthful worth of MSRs attributable to
valuation assumptions (internet of hedges)
(1)                                               (406,484)              47,514                (1,412,670)             (329,608)
Adjusted Income                         $         888,202          $ 3,162,244          $      3,945,031          $  9,992,091


(1) Displays modifications in assumptions together with low cost charges and prepayment
velocity assumptions, largely attributable to modifications in market rates of interest, and the
results of contractual prepayment safety related to gross sales of MSRs.

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Reconciliation of Adjusted Internet Revenue (Loss) to Internet Revenue Attributable to
Rocket Corporations
                                                      Three Months Ended September 30,               9 Months Ended September 30,
($ in 1000's)                                         2022                    2021                   2022                    2021
Internet revenue attributable to Rocket Corporations       $          6,910          $    75,337          $         64,037          $   260,159
Internet revenue affect from professional forma conversion of
Class D widespread shares to Class A standard shares
(1)                                                         89,873            1,318,062                 1,130,341            4,948,428
Adjustment to the supply for revenue tax (2)             (16,074)            (321,873)                 (258,860)          (1,203,184)
Tax-effected internet revenue (2)                       $         80,709          

$ 1,071,526 $ 935,518 $ 4,005,403
Share-based compensation expense (3)

                        57,762               40,879                   186,139              123,987
Change in truthful worth of MSRs attributable to
valuation assumptions (internet of hedges) (4)                 (406,484)              47,514                (1,412,670)            (329,608)
Litigation accrual (5)                                           -                    -                         -               15,000
Profession transition program (6)                               20,126                    -                    81,132                    -
Change in Tax receivable settlement legal responsibility (7)                 -                    -                   (24,354)                   -
Tax affect of changes (8)                               80,540              (21,983)                  291,412               47,407
Different tax changes (9)                                      967                1,009                     2,902                2,767
Adjusted Internet (Loss) Revenue                        $       (166,380)         

$ 1,138,945 $ 60,079 $ 3,864,956

(1) Displays internet revenue to Class A standard inventory from professional forma change and
conversion of corresponding shares of our Class D widespread shares held by
non-controlling curiosity holders as of September 30, 2022 and 2021.

(2)  Rocket Corporations is topic to U.S. Federal revenue taxes, along with
state, native and Canadian taxes with respect to its allocable share of any internet
taxable revenue of Holdings. The Adjustment to the supply for revenue tax
displays the distinction between (a) the revenue tax computed utilizing the efficient
tax charges under utilized to the Revenue earlier than revenue taxes assuming Rocket
Corporations, Inc. owns 100% of the non-voting widespread curiosity items of Holdings
and (b) the Provision for revenue taxes.
                                                Three Months Ended September 30,           9 Months Ended September 30,
                                                   2022                 2021                   2022                  2021

Internet revenue attributable to Rocket Corporations $ 6,910 $ 75,337 $ 64,037 $ 260,159
Internet revenue affect from professional forma conversion of
Class D widespread shares to Class A standard shares 89,873

            1,318,062                1,130,341           4,948,428
Provision for revenue taxes                         10,131               32,830                   54,741             122,709
Adjusted revenue earlier than revenue taxes               106,914            1,426,229                1,249,119           5,331,296


Efficient Revenue Tax Price for Adjusted Internet
Revenue (Loss)                                     24.51  %            24.87  %            25.11  %            24.87  %


Adjusted provision for revenue taxes              26,205             354,703             313,601             1,325,893
Provision for revenue taxes                       10,131              32,830              54,741               122,709
Adjustment to the supply for revenue tax    $ (16,074)         $ (321,873)         $ (258,860)         $ (1,203,184)



                                                 Three Months Ended September 30,               9 Months Ended September 30,
                                                   2022                    2021                   2022                    2021
Statutory U.S. Federal Revenue Tax Price                21.00  %               21.00  %                21.00  %               21.00  %
Canadian taxes                                         0.01                   0.01                    0.01                   0.01
State and Native Revenue Taxes (internet of federal
profit)                                               3.50                   3.86                    4.10                   3.86
Efficient Revenue Tax Price for Adjusted Internet
Revenue (Loss)                                         24.51  %               24.87  %                25.11  %               24.87  %


(3) The 9 months ended September 30, 2022 quantities exclude the affect of the
profession transition program.

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(4) Displays modifications in assumptions together with low cost charges and prepayment
velocity assumptions, largely attributable to modifications in market rates of interest, and the
results of contractual prepayment safety related to gross sales of MSRs.

(5) Displays authorized accrual associated to a selected authorized matter.

(6)  Displays internet bills related to compensation packages, healthcare
protection, profession transition providers, and accelerated vesting of sure fairness
awards.

(7) Displays modifications in estimates of tax charges and different variables of the Tax
receivable settlement legal responsibility.

(8)  Tax affect of changes provides impact to the revenue tax associated to
share-based compensation expense, change in truthful worth of MSRs attributable to valuation
assumptions, litigation accrual, profession transition program and the change in Tax
receivable settlement legal responsibility on the efficient tax charges for every quarter.

(9) Represents tax advantages as a result of amortization of intangible belongings and
different tax attributes ensuing from the acquisition of Holdings items, internet of
fee obligations underneath Tax Receivable Settlement.

Reconciliation of Adjusted Diluted Weighted Common Shares Excellent to
Diluted Weighted Common Shares Excellent

                                               Three Months Ended September 30,                                   9 Months Ended September 30,
($ in 1000's, besides shares
and per share)                           2022                              2021                             2022                              2021
Diluted weighted common Class A
Frequent shares excellent                1,970,665,767                          1,990,828,351               1,972,263,268                            

135,392,670

Assumed professional forma conversion of
Class D shares (1)                                   -                                      -                           -                          1,855,464,831
Adjusted diluted weighted
common shares excellent               1,970,665,767                          1,990,828,351               1,972,263,268                          1,990,857,501

Adjusted Internet (Loss) Revenue       $           (166,380)       $                      1,138,945       $              60,079       $                      3,864,956
Adjusted Diluted (Loss) Earnings
Per Share                        $              (0.08)       $                           0.57       $                0.03       $                           1.94



(1)  Displays the proforma change and conversion of non-dilutive Class D
widespread inventory to Class A standard inventory. For the 9 months ended September 30,
2021, Class D widespread shares have been anti-dilutive and subsequently included within the
proforma conversion of Class D shares within the desk above. For the three and 9
months ended September 30, 2022 and the three months ended September 30, 2021,
Class D widespread shares have been dilutive and are included within the dilutive weighted
common Class A standard shares excellent within the desk above.
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Reconciliation of Adjusted EBITDA to Internet Revenue

                                              Three Months Ended September 30,                9 Months Ended September 30,
($ in 1000's)                                 2022                    2021                    2022                    2021
Internet revenue                                $         96,224          $ 

1,392,859 $ 1,192,588 $ 5,206,847
Curiosity and amortization expense on
non-funding debt

                                    38,317               34,163                    115,263              104,772
Revenue tax provision                                10,131               32,830                     54,741              122,709
Depreciation and amortization                       24,211               19,577                     70,033               55,470
Share-based compensation expense (1)                57,762               40,879                    186,139              123,987
Change in truthful worth of MSRs attributable to
valuation assumptions (internet of hedges) (2)         (406,484)              47,514                 (1,412,670)            (329,608)
Litigation accrual (3)                                   -                    -                          -               15,000
Profession transition program (4)                       20,126                    -                     81,132                    -
Change in Tax receivable settlement
legal responsibility (5)                                            -                    -                    (24,354)                   -
Adjusted EBITDA                           $       (159,713)         $ 1,567,822          $         262,872          $ 5,299,177


(1) The 9 months ended September 30, 2022 quantities exclude the affect of the
profession transition program.

(2) Displays modifications in assumptions together with low cost charges and prepayment
velocity assumptions, largely attributable to modifications in market rates of interest, and the
results of contractual prepayment safety related to gross sales of MSRs.

(3) Displays authorized accrual associated to a selected authorized matter.

(4)   Displays internet bills related to compensation packages, healthcare
protection, profession transition providers, and accelerated vesting of sure fairness
awards.

(5) Displays modifications in estimates of tax charges and different variables of the Tax
receivable settlement legal responsibility.

Key Efficiency Indicators

We monitor plenty of key efficiency indicators to guage the efficiency of
our enterprise operations. Our mortgage manufacturing key efficiency indicators allow
us to watch our means to generate achieve on sale income in addition to perceive
how our efficiency compares to the overall mortgage origination market. Our
servicing portfolio key efficiency indicators allow us to watch the general
measurement of our servicing portfolio of enterprise, the associated worth of our mortgage
servicing rights, and the well being of the enterprise as measured by the common MSR
delinquency charge. Different key efficiency indicators for different Rocket Corporations,
apart from Rocket Mortgage ("Different Rocket Corporations"), permit us to watch each
revenues and unit gross sales generated by these companies. We additionally embody
Rockethomes.com common distinctive month-to-month visits, as we imagine site visitors on the positioning
is an indicator of shopper curiosity.

The next summarizes key efficiency indicators of the enterprise:

                                                  Three Months Ended September 30,                  9 Months Ended September 30,
(Models and $ in 1000's)                           2022                    2021                     2022                      2021
Mortgage Manufacturing Knowledge
Closed mortgage origination quantity               $         25,578,262       $   

88,046,623 $ 114,098,993 $ 275,336,000
Direct to Client origination quantity $ 14,553,921 $

48,077,894 $ 67,978,968 $ 154,733,543
Associate Community origination quantity

           $         11,024,341       $    39,968,729       $          46,120,025       $    120,602,457
Achieve on sale margin (1)                                   2.69  %            3.05     %                     2.91  %             3.21     %


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                                                                           September 30,
                                                                   2022                     2021
Servicing Portfolio Knowledge
Complete serviced UPB (consists of subserviced)                   $      531,029,666       $       521,300,240
MSRs UPB of loans serviced                                  $      495,614,634       $       454,666,840
UPB of loans subserviced and quickly serviced           $       35,415,032       $        66,633,400
Complete loans serviced (consists of subserviced)                            2,517.3                   2,433.6
Variety of MSRs loans serviced                                          2,427.1                   2,239.0
Variety of loans subserviced and quickly serviced                      90.2                     194.6
MSR truthful worth a number of (2)                                               5.13                      3.61

Complete serviced delinquency charge, excluding loans in
forbearance (60+)

                                                      0.76  %                0.83     %
Complete serviced MSR delinquency charge (60+)                              1.11  %                2.15     %
Internet consumer retention charge (trailing twelve months)                       93  %                  91     %


                                                    Three Months Ended September 30,                  9 Months Ended September 30,
                                                    2022                     2021                    2022                     2021
Different Rocket Corporations
Amrock closings (items)                                   54.4                      261.5                 305.3                       870.6
Rocket Properties actual property transactions                      8.1                        9.1                  26.7                        24.0
Rockethomes.com common distinctive month-to-month
guests (3)                                           1,652.1                    2,398.4               2,376.1                     1,769.9
Rocket Loans closed (items)                                7.8                        4.9                  20.3                        12.1

Complete Different Rocket Corporations gross income $ 139,544 $

       402,751       $       613,234       $           1,235,055

Complete Different Rocket Corporations internet income (4) $ 108,657 $

       385,110       $       529,423       $           1,181,941


(1)  Achieve on sale margin is calculated by dividing Achieve on sale of loans, internet by
the online charge lock quantity for the interval. Achieve on sale of loans, internet consists of the
internet achieve on sale of loans, truthful worth of originated MSRs, truthful worth changes
on originated loans held on the market and IRLC's, and revaluation of ahead
commitments economically hedging loans held on the market and IRLCs. This metric is a
measure of achieve on sale income and excludes revenues from Rocket Loans, modifications
within the mortgage repurchase reserve and truthful worth changes on repurchased loans
held on our stability sheet, comparable to early buyouts.

(2)  MSRs truthful market worth a number of is a metric used to find out the relative
worth of the MSRs asset in relation to the annualized retained servicing charge,
which is the money that the holder of the MSRs asset would obtain from the
portfolio over such interval. It's calculated because the quotient of (a) the MSRs
truthful market worth as of a specified date divided by (b) the weighted common
annualized retained servicing charge for our MSRs portfolio as of such date. The
weighted common annualized retained servicing charge for our MSRs portfolio was
0.29% and 0.29% as of September 30, 2022 and 2021, respectively. The huge
majority of our portfolio consists of originated MSRs and consequently, the
affect of bought MSRs doesn't have a fabric affect on our weighted common
service charge.

(3)  Rockethomes.com common distinctive month-to-month guests is calculated by a 3rd
occasion service that displays web site exercise. This metric does not essentially
have a direct correlation to revenues and is used primarily to watch shopper
curiosity within the Rockethomes.com web site.

(4)  Internet income introduced above is calculated as gross revenues much less
intercompany income eliminations. A portion of the Different Rocket Corporations
revenues is generated by way of intercompany transactions. These intercompany
transactions happen with entities which are a part of our platform.
Consequently, we view gross income of particular person Different Rocket Corporations as a
key efficiency indicator, and we contemplate internet income of Different Rocket Corporations
on a mixed foundation.

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Description of Sure Parts of Monetary Knowledge

Parts of Income

Our sources of income embody Achieve on sale of loans, internet, Mortgage servicing revenue
(loss), Curiosity revenue, internet, and Different revenue.

Achieve on sale of loans, internet

Achieve on sale of loans, internet consists of all parts associated to the origination
and sale of mortgage loans, together with internet achieve on sale of loans, which
represents the premium we obtain in extra of the mortgage principal quantity and
sure charges charged by traders upon sale of loans into the secondary
market, mortgage origination charges, credit, factors and sure prices, provision for
or profit from investor reserves, the change in truthful worth of rate of interest
locks ("IRLCs" or "charge lock") and loans held on the market, the achieve or loss on
ahead commitments hedging loans held on the market and IRLCs, and (6) the truthful
worth of originated MSRs. MSR belongings are created on the time Mortgage Loans Held
for Sale are securitized and bought to traders for money, whereas the Firm
retains the MSR.

Mortgage servicing revenue (loss)

The worth of newly originated MSRs is acknowledged as a part of the achieve on
sale of loans, internet when loans are bought and the related servicing rights are
retained. Mortgage servicing charge revenue consists of the contractual charges earned for
servicing the loans and consists of ancillary income comparable to late charges and
modification incentives. Mortgage servicing charge revenue is recorded to revenue as
earned, which is upon assortment of funds from debtors.

Curiosity revenue, internet

Curiosity revenue, internet is curiosity earned on mortgage loans held on the market internet of
the curiosity expense paid on our mortgage funding amenities.

Different revenue

Different revenue consists of revenues generated from Amrock (title insurance coverage providers,
property valuation, and settlement providers), Rocket Properties (actual property community
referral charges), Rocket Auto (auto market gross sales revenues), Core Digital
Media (third occasion lead technology revenues), Rock Connections (third occasion
gross sales and help revenues), Rocket Cash - previously referred to as Truebill (private
finance), Rocket Loans (private loans) {and professional} service charges. The
skilled service charges symbolize quantities acquired in change for
skilled providers offered to affiliated corporations. Providers are offered
primarily in reference to know-how, amenities, human sources,
accounting, coaching, and safety features. Different revenue additionally consists of
revenues from funding curiosity revenue.

Parts of working bills

Our working bills as introduced within the assertion of operations information embody
Salaries, commissions and crew member advantages, Normal and administrative
bills, Advertising and promoting bills, and Different bills.

Salaries, commissions and crew member advantages

Salaries, commissions and crew member advantages embody all payroll, advantages,
and share-based compensation bills for our crew members.

Normal and administrative bills

Normal and administrative bills primarily embody occupancy prices,
skilled providers, mortgage processing bills on loans that don't shut or
that aren't charged to purchasers on closed loans, dedication charges, charges on mortgage
funding amenities, license charges, workplace bills and different working bills.

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Advertising and promoting bills

Advertising and promoting bills are primarily associated to efficiency and
model advertising.

Different bills

Different bills primarily encompass depreciation and amortization on property
and tools, and mortgage servicing associated bills.

Revenue taxes

In calculating the supply for interim revenue taxes, in accordance with ASC
Subject 740 Revenue Taxes, we apply an estimated annual efficient tax charge to
year-to-date atypical revenue. On the finish of every interim interval, we estimate the
efficient tax charge anticipated to be relevant for the total 12 months. Tax-effects of
important, uncommon or sometimes occurring objects are excluded from the
estimated annual efficient tax charge calculation and acknowledged within the interim
interval wherein they happen.

Tax Receivable Settlement
Consult with Word 7, Revenue Taxes for extra data on Tax Receivable Settlement.

Share-based compensation
Share-based compensation is comprised of each fairness and legal responsibility awards and is
measured and expensed accordingly underneath Accounting Requirements Codification
("ASC") 718 Compensation - Inventory Compensation. As indicated above, share-based
compensation expense is included as a part of salaries, advantages and crew member
advantages.

Non-controlling curiosity

We're the only managing member of Holdings and consolidate the monetary
outcomes of Holdings. Subsequently, we report a non-controlling curiosity based mostly on
the Holdings Models of Holdings held by Dan Gilbert, our founder and Chairman
(our "Chairman") and RHI on our Condensed Consolidated Steadiness Sheets. Revenue or
loss is attributed to the non-controlling pursuits based mostly on the weighted
common Holdings Models excellent throughout the interval and is introduced on the
Condensed Consolidated Statements of Revenue and Complete Revenue . Consult with
Word 12, Non-controlling Pursuits for extra data on non-controlling
pursuits.
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Outcomes of Operations for the Three and 9 Months Ended September 30, 2022 and

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