8-KMaterial AgreementsFinancial Events

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

Filed October 22, 2021For Securities:RKT

Summary

Rocket Companies, Inc. (RKT) filed an 8-K on October 22, 2021, to disclose an amendment to its Master Repurchase Agreement with Credit Suisse First Boston Mortgage Capital LLC and other buyers. This amendment, specifically Amendment No. 18 to the Pricing Side Letter, extends the termination date of the existing agreement from October 22, 2021, to October 20, 2023. This extension provides stability and continued access to financing for Rocket Mortgage, LLC, a key subsidiary. Importantly, the total funding capacity under this and all other master repurchase agreements, lines of credit, and facilities remains unchanged at $33.9 billion as of October 22, 2021. This represents a significant increase from $29.30 billion at the end of 2020 and $19.13 billion at the end of 2019, indicating Rocket Companies' growing access to liquidity to support its operations and growth.

Key Highlights

  • 1Rocket Mortgage, LLC extended its Master Repurchase Agreement with Credit Suisse First Boston Mortgage Capital LLC and other buyers.
  • 2The termination date of the Master Repurchase Agreement was extended from October 22, 2021, to October 20, 2023.
  • 3The amendment provides a two-year extension, enhancing financial planning and operational stability.
  • 4Total funding capacity across all repurchase agreements, lines of credit, and facilities remains at $33.9 billion as of October 22, 2021.
  • 5The total funding capacity has increased significantly from $29.30 billion (December 31, 2020) and $19.13 billion (December 31, 2019).
  • 6This filing incorporates the information into the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement' section.

Frequently Asked Questions

The main purpose of this 8-K filing is to report an amendment to Rocket Mortgage, LLC's Master Repurchase Agreement, which extends its termination date and maintains its total funding capacity.

The extension of the Master Repurchase Agreement provides Rocket Companies with continued access to a significant funding source, offering financial stability and predictability for its operations and strategic initiatives over the next two years.

No, the total funding capacity of Rocket Mortgage, LLC, across all its financing arrangements, remains unchanged at $33.9 billion as of October 22, 2021. However, this capacity has grown substantially compared to previous years.

The significant increase in total funding capacity since 2019 suggests that Rocket Companies has successfully expanded its access to capital, likely enabling it to support higher origination volumes and potentially pursue new growth opportunities.