8-KMaterial AgreementsFinancial Events

Rocket Companies, Inc. 8-K Report, Material Agreement (Jul 22, 2021)

Filed July 22, 2021For Securities:RKT

Summary

Rocket Companies, Inc. (RKT) filed an 8-K on July 21, 2021, disclosing an amendment to a material definitive agreement. Specifically, Quicken Loans, LLC, an indirect subsidiary, entered into the Eighteenth Amendment to its Master Repurchase Agreement with JPMorgan Chase Bank, N.A., as Administrative Agent. This amendment's primary impact is extending the maturity date of the Master Repurchase Agreement to April 21, 2023, with other technical changes also being implemented. Importantly, this amendment did not alter the total funding capacity available to the company. As of July 16, 2021, the aggregate funding capacity across all facilities, including master repurchase agreements, early funding, unsecured lines of credit, MSR lines, and early buy-out facilities, remains consistent at $31.30 billion. This is an increase from $29.40 billion at the end of 2020 and $19.13 billion at the end of 2019, indicating a strengthening of the company's financing structure.

Key Highlights

  • 1Quicken Loans, LLC (subsidiary of RKT) entered into an Eighteenth Amendment to its Master Repurchase Agreement with JPMorgan Chase Bank, N.A.
  • 2The maturity date of the Master Repurchase Agreement has been extended to April 21, 2023.
  • 3The amendment includes other technical modifications to the Master Repurchase Agreement.
  • 4The total funding capacity of Quicken Loans, LLC remains unchanged at $31.30 billion as of July 16, 2021.
  • 5This total funding capacity is an increase from $29.40 billion as of December 31, 2020, and $19.13 billion as of December 31, 2019.
  • 6The increased funding capacity demonstrates a potential strengthening of the company's liquidity and financing flexibility.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the Eighteenth Amendment to the Master Repurchase Agreement between Quicken Loans, LLC (a subsidiary of Rocket Companies, Inc.) and JPMorgan Chase Bank, N.A., as well as to incorporate this information into the creation of a direct financial obligation.

The amendment extends the maturity date of the Master Repurchase Agreement to April 21, 2023. Crucially, it did not change the overall funding capacity, which remains at $31.30 billion as of July 16, 2021, an increase from previous periods.

Yes, the company's total funding capacity across all its facilities has increased. As of July 16, 2021, it stands at $31.30 billion, up from $29.40 billion at the end of 2020 and $19.13 billion at the end of 2019. This suggests improved access to capital.

The filing indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement. This stems from the amendment to the Master Repurchase Agreement, which is a form of financing.