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Segments
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segments Segments
The Company’s Chief Executive Officer, who has been identified as its Chief Operating Decision Maker (“CODM”), has evaluated how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments — Direct to Consumer and Partner Network. The key factors used to identify these reportable segments are the organization and alignment of the Company’s internal operations and the nature of its marketing channels, which drive client acquisition into the mortgage platform. This determination reflects how its CODM monitors performance, allocates capital and makes strategic and operational decisions. The Company’s segments are described as follows:

Direct to Consumer

In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage online and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title insurance, appraisals and settlement services complementing the Company’s end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals.

Revenues in the Direct to Consumer segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Loan servicing income consists of the contractual fees earned for servicing loans and other ancillary servicing fees, as well as changes in the fair value of MSRs due to changes in valuation assumptions and realization of cash flows.

Partner Network

The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO. Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker.

Revenues in the Partner Network segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses.

Other Information About Our Segments

The Company measures the performance of the segments primarily on a contribution margin basis. The accounting policies applied by our segments are the same as those described in Note 1, Business, Basis of Presentation and Accounting Policies and the decrease in MSRs due to valuation assumptions is consistent with the changes described in Note 3, Mortgage Servicing Rights. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses and Other expenses, such as servicing costs and origination costs.

The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting.
The Company also reports an “All Other” category that includes operations from Rocket Homes, Rock Connections, Rocket Auto, Core Digital Media, Rocket Loans, Truebill and includes professional service fee revenues from related parties. These operations are neither significant individually nor in aggregate and therefore do not constitute a reportable segment.

Key operating data for our business segments for the periods ended:

Three Months Ended March 31, 2022Direct to
 Consumer		Partner
 Network		Segments
 Total		All OtherTotal
Revenues
Gain on sale$1,217,103 $258,056$1,475,159 $8,627 $1,483,786 
Interest income57,601 32,16889,769 771 90,540 
Interest expense on funding facilities(26,727)(14,969)(41,696)— (41,696)
Servicing fee income365,499 — 365,499 715 366,214 
Changes in fair value of MSRs454,380 — 454,380 — 454,380 
Other income167,027 16,477183,504 133,868 317,372 
Total U.S. GAAP Revenue, net2,234,883 291,732 2,526,615 143,981 2,670,596 
Less: Increase in MSRs due to valuation assumptions (net of hedges)(739,217)—(739,217)— (739,217)
Adjusted revenue1,495,666 291,732 1,787,398 143,981 1,931,379 
Directly attributable expenses869,210 120,034 989,244 118,872 1,108,116 
Contribution margin$626,456 $171,698 $798,154 $25,109 $823,263 
Three Months Ended March 31, 2021Direct to ConsumerPartner NetworkSegments TotalAll OtherTotal
Revenues
Gain on sale$2,863,600 $684,428$3,548,028 $4,414 $3,552,442 
Interest income58,668 36,06194,729 516 95,245 
Interest expense on funding facilities(42,006)(25,818)(67,824)(20)(67,844)
Servicing fee income291,652 — 291,652 709 292,361 
Changes in fair value of MSRs200,555 — 200,555 — 200,555 
Other income304,912 27,778332,690 133,422 466,112 
Total U.S. GAAP Revenue, net3,677,381 722,449 4,399,830 139,041 4,538,871 
Less: Increase in MSRs due to valuation assumptions (net of hedges)(499,084)—(499,084)— (499,084)
Adjusted revenue3,178,297 722,449 3,900,746 139,041 4,039,787 
Directly attributable expenses973,129 179,777 1,152,906 65,067 1,217,973 
Contribution margin$2,205,168 $542,672 $2,747,840 $73,974 $2,821,814 
The following table represents a reconciliation of segment contribution margin to consolidated U.S. GAAP income before taxes for the three months ended:
Three Months Ended March 31,
20222021
Contribution margin, excluding change in MSRs due to valuation assumptions$823,263 $2,821,814 
Increase in MSRs due to valuation assumptions (net of hedges)739,217 499,084 
Contribution margin, including change in MSRs due to valuation assumptions1,562,480 3,320,898 
Less expenses not allocated to segments:
Salaries, commissions and team member benefits244,044 230,094 
General and administrative expenses192,457 194,494 
Depreciation and amortization21,042 15,304 
Interest and amortization expense on non-funding debt38,664 35,571 
Other expenses3,816 2,265 
Income before income taxes$1,062,457 $2,843,170