Rocket Mortgage: Difference between revisions
m Reverted 1 edit by 69.40.228.249 identified as vandalism to last revision by Someguy1221. using TW |
|||
| Line 31: | Line 31: | ||
==Employment Levels== |
==Employment Levels== |
||
In order to avoid unemployment claims during the brutal housing market, Quicken is forcing employees to quit or set them up to be fired. This will save the company millions of dollars. It will also severly destroy the financial lives of many employees, but it is business. |
|||
While Quicken Loans has not had the massive layoffs of other companies in the industry, the company has seen a drop in employment levels due to attrition. Quicken Loans states that they have lost about 160 people over the past few months. Quicken Loans currently has a hiring freeze (no information on when the freeze took place) and an attrition level of about 36 percent per year. They did not hire new staff in September and October of 2007. <ref>{{cite news | title = Gilbert: Housing slump hits Quicken| publisher = The Detroit News | date = 2007-10-15 | url = http://www.detnews.com/apps/pbcs.dll/article?AID=/20071015/BIZ/710150366/1001 | accessdate = 2007-10-15}}</ref> |
While Quicken Loans has not had the massive layoffs of other companies in the industry, the company has seen a drop in employment levels due to attrition. Quicken Loans states that they have lost about 160 people over the past few months. Quicken Loans currently has a hiring freeze (no information on when the freeze took place) and an attrition level of about 36 percent per year. They did not hire new staff in September and October of 2007. <ref>{{cite news | title = Gilbert: Housing slump hits Quicken| publisher = The Detroit News | date = 2007-10-15 | url = http://www.detnews.com/apps/pbcs.dll/article?AID=/20071015/BIZ/710150366/1001 | accessdate = 2007-10-15}}</ref> |
||
Revision as of 13:36, 29 October 2007
| File:Ql logo w home.gif | |
| Company type | Private |
|---|---|
| Industry | Finance and Mortgage |
| Founded | 1985 |
| Headquarters | Livonia, MI, the United States |
Key people | Dan Gilbert, Founder and Chairman William Emerson, CEO Patrick McInnis, President |
| Products | Mortgage |
Number of employees | 4,000 |
| Website | www.quickenloans.com, |
Quicken Loans Corporation is a retail home mortgage lending firm in the US. Quicken Loans Inc. is comprised of the Quicken Loans and Rock Financial, and Title Source, a settlement service provider. Quicken Loans closed $18 billion in residential mortgage loans in 2006. The company employs about 4,000 workers and is headquartered in Livonia, Michigan.
History
Quicken Loans, originally Rock Financial Corporation, was founded in 1985 by Dan Gilbert and Ron Berman and soon became one of the largest independent mortgage companies in the country. In May 1998, Gilbert took Rock Financial public, launching a successful IPO underwritten by Bear Stearns and Prudential Securities.
In December 1999, Intuit Inc. (makers of QuickBooks, TurboTax, and Quicken) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.[1]
In the Winter of 2006-2007, speculation was that Dan Gilbert would announce plans to relocate his headquarters to Detroit.[2]
As of October 2007, no further information on this had been announced.
Employment Levels
In order to avoid unemployment claims during the brutal housing market, Quicken is forcing employees to quit or set them up to be fired. This will save the company millions of dollars. It will also severly destroy the financial lives of many employees, but it is business. While Quicken Loans has not had the massive layoffs of other companies in the industry, the company has seen a drop in employment levels due to attrition. Quicken Loans states that they have lost about 160 people over the past few months. Quicken Loans currently has a hiring freeze (no information on when the freeze took place) and an attrition level of about 36 percent per year. They did not hire new staff in September and October of 2007. [3]
2007 Credit Crunch
In August of 2007 the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response to that Quicken Loans stopped doing all:[4]
- Second Mortgages
- Home Equity Lines of Credit (HELOC)
- Alt-A Products
- Deferred Interest Loans
Gilbert is quoted as saying that Quicken is active in closing "plain vanilla loans".
Class Action Lawsuit
Quicken Loans Inc. is currently the defendant in a major class action lawsuit. This was filed against the company on behalf of employees who worked as loan consultants for any Quicken office within the past three years. The suit alleges that Quicken is in violation of the Fair Labor Act for failing to pay the plaintiffs overtime for working beyond a 40-hour work week.[5]
References
- ^ "The 400 richest Americans". Forbes Magazine. 2007-8-24. Retrieved 2007-8-24.
{{cite news}}: Check date values in:|accessdate=and|date=(help) - ^ "A DOWNTOWN DILEMMA: Quicken considers a move to Detroit; two key sites spark pros, cons debate". The Detroit Free Press. 2006-8-22. Retrieved 2006-8-22.
{{cite news}}: Check date values in:|accessdate=and|date=(help) - ^ "Gilbert: Housing slump hits Quicken". The Detroit News. 2007-10-15. Retrieved 2007-10-15.
- ^ "Gilbert: Mortgage squeeze could be blessing for Quicken". The Detroit Free Press. 2007-8-16. Retrieved 2007-8-16.
{{cite news}}: Check date values in:|accessdate=and|date=(help) - ^ Dybis, Karen (February 10), "Former Quicken Loans workers file suit", The Detroit News
{{citation}}: Check date values in:|date=and|year=/|date=mismatch (help)