  Chicagobureau Member Username: Chicagobureau Post Number: 31 Registered: 07-2005 Posted From: 207.148.213.218 |
Saturday Detroit News article says Dan Gilbert is considering moving the entire company to Cleveland: http://www.freep.com/apps/pbcs .dll/article?AID=/20060325/BUS INESS06/603250347 Today Crain's Cleveland reports Quicken is opening a small office there to grow to 350 employees: http://www.crainsdetroit.com/c gi-bin/news.pl?newsId=8243 | ||
Sharmaal Member Username: Sharmaal Post Number: 761 Registered: 09-2004 Posted From: 136.1.1.101 |
I call this a clever smokescreen. I would put my money on a Downtown Detroit move. He might as well build some goodwill in Cleveland by hiring people there. Now there are three parties bidding for his HQ. Detroit Suburbs, Detroit, Cleveland. Sounds like he'll get a good deal. | ||
Merchantgander Member Username: Merchantgander Post Number: 1685 Registered: 01-2005 Posted From: 150.198.150.244 |
Chicagobureau, what was wrong with one of the other 5 Rock Financial threads. | ||
Chicagobureau Member Username: Chicagobureau Post Number: 32 Registered: 07-2005 Posted From: 207.148.213.218 |
I just thought I'd start a new one. The April fools one was getting a little long and I didn't want people to think It was a joke. | ||
Jdkeepsmiling Member Username: Jdkeepsmiling Post Number: 77 Registered: 01-2006 Posted From: 208.50.91.234 |
I belive that this was a token to Cleveland. He wants to expand his mortgage business, and going to Cleveland is a logical decision. He can no longer expand by jsut getting more business in Detroit, so Cleveland is where they are going next. I would think that this decision would increase the odds for Downtown. Why would you build an office for 350 if you were going to move your HQ there? He is staying in MI, the question is where??? My money is still on Downtown!!! | ||
Atl_runner Member Username: Atl_runner Post Number: 1877 Registered: 10-2003 Posted From: 24.98.116.13 |
Are Rock Financial and Quicken loans one in the same? | ||
Jdkeepsmiling Member Username: Jdkeepsmiling Post Number: 78 Registered: 01-2006 Posted From: 208.50.91.234 |
Yup ATL | ||
Jdkeepsmiling Member Username: Jdkeepsmiling Post Number: 79 Registered: 01-2006 Posted From: 208.50.91.234 |
Yup ATL | ||
Ndavies Member Username: Ndavies Post Number: 1692 Registered: 10-2003 Posted From: 129.9.163.233 |
Yes, Quicken Loans and Rock Financial are the same company. One is a subsidiary of the other. | ||
Merchantgander Member Username: Merchantgander Post Number: 1687 Registered: 01-2005 Posted From: 150.198.150.244 |
What's a subsidiary? | ||
Llyn Member Username: Llyn Post Number: 1489 Registered: 06-2004 Posted From: 68.61.197.206 |
What's a company? | ||
Bob Member Username: Bob Post Number: 871 Registered: 11-2003 Posted From: 152.163.100.8 |
I think it is a good sign that two of the three locations are here in Metro Detroit, but the region needs to not rest on its laurels and aggressively pursue Quicken Loans. I think Dan Gilbert buying the Cleveland Cavaliers is more like Karmanos in that a Detroit teams was not available to buy, so he had to look elsewhere. I wonder if anyone from Quicken Loans is on the forum and has any insight into this. | ||
Publicmsu Member Username: Publicmsu Post Number: 617 Registered: 11-2003 Posted From: 136.182.2.222 |
Why aren't I wearing any pants? | ||
Dabirch Member Username: Dabirch Post Number: 1435 Registered: 06-2004 Posted From: 208.44.117.10 |
Whose food is in my mouth? | ||
Crew Member Username: Crew Post Number: 892 Registered: 02-2004 Posted From: 146.9.52.113 |
Do I carry my lunch or walk to school? | ||
Supersport Member Username: Supersport Post Number: 9961 Registered: 10-2003 Posted From: 64.118.137.226 |
Come on, moving 3,500 people to another state? I think the majority of the employees, whom he says he wants to keep happy, would not approve of such a change in lifestyle. They'll stay in Michigan, but I personally think the suburbs have a greater shot at getting the HQ than downtown. The freebies seem to have been all handed out in Detroit. | ||
Gumby Member Username: Gumby Post Number: 1009 Registered: 11-2003 Posted From: 141.216.1.4 |
Does any one else find it wierd that they own the Cleveland Cavaliers but Rock Financial is the presenting sponser (Whatever that means) of the Pistons? | ||
Superaygun Member Username: Superaygun Post Number: 305 Registered: 04-2005 Posted From: 68.42.181.134 |
Rock Financial and Quicken Loans are affiliates. (scroll upward, Gumby) (Message edited by superaygun on March 27, 2006) | ||
Detroiternthemist Member Username: Detroiternthemist Post Number: 25 Registered: 01-2006 Posted From: 64.118.149.50 |
Quicken Loan is the parent company of Rock Financial. I disagree with " The freebies seem to have been all handed out in Detroit". My opinion is that Dan Gilbert could build Quicken HQ in Troy or Livonia some 20 story building out in some office colony and disappear or Make a huge splash build Downtown and become one of the focus points for the national media at all the major events. (Compuware)(GM HQ) | ||
Skamour14 Member Username: Skamour14 Post Number: 27 Registered: 03-2005 Posted From: 35.8.142.183 |
welll whatever happens we all know that this would be better for the downtown area... I mean yeah we certianly have enough to keep the city going... but by bringing in another soild company like Q.L. is a big issue.. my friend works @ the one off of 275 and she hasnt heard of any moving just yet.... but if they do decide to move why not choose someplace lie flint.. where its becoming horrible.... Idk, ever since GM decided to up and leave Flint, I think some type of big company should take over and help out the area.... namely the schooling or something like that | ||
Focusonthed Member Username: Focusonthed Post Number: 66 Registered: 02-2006 Posted From: 209.220.229.254 |
Yeah right, convince the employees that moving to Flint would be a great idea. They'd have tremendous staffing issues. | ||
Skamour14 Member Username: Skamour14 Post Number: 29 Registered: 03-2005 Posted From: 35.8.142.183 |
if you could give me some insight as to why they would have some staffing issues I would like to know why...... maybe because the poor would be robbing them.. unsafe conditions? cmon.. this same stuff was here in detroit before GM moved in and after they did that... wyane state followed up by helping clean up cass corridor... the city helped by cleaning itself up.. so dont feed that folly this way | ||
Skamour14 Member Username: Skamour14 Post Number: 30 Registered: 03-2005 Posted From: 35.8.142.183 |
its suburbanites like your self that make all the city folks upset with that whole white flight theory..... flint just needs a boost on ther economy.. I was just suggesting on thought how Q.L. would help that boost thats all... | ||
Focusonthed Member Username: Focusonthed Post Number: 71 Registered: 02-2006 Posted From: 209.220.229.254 |
I love how you assume I'm a suburbanite, and brought race into it as well. And how you think that has anything to do with the fact that Flint has fallen worse than Detroit, and with the way people feel about Detroit (suburbanites, not unlike those that work for Q.L.), I think they'd be a little more concerned about Flint. I have nothing against Flint, but they're going to need a little more development in the meantime before any high-profile folks up and move there. (Message edited by focusonthed on March 27, 2006) | ||
Sharmaal Member Username: Sharmaal Post Number: 762 Registered: 09-2004 Posted From: 136.1.1.101 |
Let's not talk about the crime aspects. People (like c-ware employees did) will realize the truth. Detroit has theatres, many dining options, and cultural institutions. I'm sure Flint has some of each, but I dare most of you to name them off the top of your head. | ||
Skamour14 Member Username: Skamour14 Post Number: 33 Registered: 03-2005 Posted From: 35.8.142.183 |
well when GM moved here.. didnt the high profile folks up and move with them... I wasnt bringing race into it.. did I say black or white in the comment... I was just saying that folks have a misunderstanding of this whole situation... and what could be no better than a high profile company moving into flint than Q.L.... or some other company thats all.... | ||
Dougw Member Username: Dougw Post Number: 1046 Registered: 11-2003 Posted From: 136.1.1.33 |
They'd also have tremendous staffing issues simply because Flint is quite a bit farther away from their current location than downtown Detroit is. It doesn't necessarily have anything to do with perceptions of safety, which in all honesty would probably be about the same in Flint vs. Detroit. | ||
Focusonthed Member Username: Focusonthed Post Number: 72 Registered: 02-2006 Posted From: 209.220.229.254 |
Yeah, I wasn't really meaning anything about crime or safety. Just that you'd be moving all your employees from Detroit/Livonia, where there are big city options and conveniences...to Flint, where there hasn't been much of anything since the 80s. Oh, and "high-profile folks" meant companies, not individuals. Poor word choice on my part. | ||
Miss_cleo Member Username: Miss_cleo Post Number: 135 Registered: 05-2005 Posted From: 69.47.85.139 |
I'm sure Flint has some of each, but I dare most of you to name them off the top of your head. The G Ford Museum, lol | ||
Millingtond Member Username: Millingtond Post Number: 2 Registered: 03-2006 Posted From: 69.128.232.110 |
I'm all for this, I think we as forumers should all get together and hold a Rally at Rock's HQ with signs and banners in support of moving downtown. It's monday but I'm sure we could get something together by Saturday and hand out flyers and "picket type signs" with some slogan on it. Anyone have any ideas on what we could put on a sign and get the attention of the media and rock? | ||
Detroit313 Member Username: Detroit313 Post Number: 16 Registered: 02-2006 Posted From: 72.229.136.103 |
What we should do is ask Dennis Archer to do his magic like he did with Compuware again. Although he doesnt have much power like KK, and the dumbass council. 313 | ||
Gwhobbies Member Username: Gwhobbies Post Number: 60 Registered: 10-2005 Posted From: 66.208.225.165 |
"I'm all for this, I think we as forumers should all get together and hold a Rally at Rock's HQ with signs and banners in support of moving downtown. It's monday but I'm sure we could get something together by Saturday and hand out flyers and "picket type signs" with some slogan on it. Anyone have any ideas on what we could put on a sign and get the attention of the media and rock?" Person, I admire your spirit. But that is about the dumbest thing I've ever heard. | ||
Millingtond Member Username: Millingtond Post Number: 3 Registered: 03-2006 Posted From: 69.128.232.110 |
Why is it a dumb idea it's no dumber then sending mail or e-mail to some funkie that throws it away. How will Quicken/Rock know they have community support? And what better way then by holding a rally for all to see. A few discarded letters and e-mails will do nothing to get Quicken/Rock to move Downtown. I think you need to start thinking out of the box a little bit. Any sort of rally/Demenstration/Protest draws publicity and most CEO's care about public opinones, | ||
Gistok Member Username: Gistok Post Number: 1929 Registered: 08-2004 Posted From: 4.229.72.133 |
MissCleo.... the Gerald Ford Museum is in Grand Rapids, not Flint. | ||
Detroit313 Member Username: Detroit313 Post Number: 18 Registered: 02-2006 Posted From: 72.229.136.103 |
We should be asking KK to offer the Statler site for a dollar and tax credits, now that should help. BTW. what is the commerical tax rate for the city of DETROIT anyway. We should lobby for QL but to the city and state. Because what's good for the city is good for the region which is good for the state. 313 | ||
L_b_patterson Member Username: L_b_patterson Post Number: 292 Registered: 10-2003 Posted From: 65.43.183.35 |
wont quicken's biggest problem the city income tax given the higher salary of its employees? (around 80k avg) | ||
Ndavies Member Username: Ndavies Post Number: 1694 Registered: 10-2003 Posted From: 129.9.163.233 |
You're greatly exaggerating the income tax issue. The cities non resident income taxes impact would be less than $1000 for a person earning $80K. That's less than $20 a week. Most of them piss away far more than that on Starbucks coffee. (Message edited by ndavies on March 27, 2006) | ||
Itsjeff Member Username: Itsjeff Post Number: 5701 Registered: 10-2003 Posted From: 208.27.111.125 |
Not forgetting that the "city tax" is itself deductable for State taxes. | ||
Ndavies Member Username: Ndavies Post Number: 1696 Registered: 10-2003 Posted From: 129.9.163.106 |
And more importantly Federal taxes. | ||
Eastsidedog Member Username: Eastsidedog Post Number: 82 Registered: 03-2006 Posted From: 69.220.142.7 |
Ndavies, I bet those workers would rather piss away $1000/yr. on Starbucks than pay the city income tax. | ||
Detroitkev Member Username: Detroitkev Post Number: 60 Registered: 04-2005 Posted From: 70.236.180.191 |
Plus, don't the income taxes (city & state) get waived if in a renaissance zone? If I'm not mistaken, both the statler & hudson blocks are renaissance zone. | ||
Alexei289 Member Username: Alexei289 Post Number: 1083 Registered: 11-2004 Posted From: 68.61.183.223 |
... I personally know people that work for GM, and count on their calender how much money per hour they give to the city of Detroit for being in it... Its not something many people take lightly.. even tho it is rediculous... | ||
Skamour14 Member Username: Skamour14 Post Number: 34 Registered: 03-2005 Posted From: 67.185.180.156 |
I say just move to Flint... thats all then play some dominoes and watch some futurama..... and stop by the BJ's in downtown for ice cream...... it's all good | ||
Jerome81 Member Username: Jerome81 Post Number: 952 Registered: 11-2003 Posted From: 64.142.86.133 |
I hope they make the move. 3%. Big freakin whoop. I'm far more pissed with the hoards the feds, California, and social security take from my paycheck. 3% wouldn't stop me from living someplace or from taking a good job. Anyway, hope they make the move. | ||
Collective Member Username: Collective Post Number: 328 Registered: 11-2003 Posted From: 68.30.193.125 |
The Quicken HQ is down to three options. 1. Stay in Analville (Livonia phonetically backwards) and expand 2. Downtown Detroit 3. Cleveland Unlike Pete K. Dan Gilbert won't force his staff to move downtown. He wants to make sure they are down with the move. My sources say that Dan G. is VERY interested in a Downtown D move. What we all need to do is figure out a way to get the Rock employees downtown as much as possible to enjoy the City so they will put the pressure upwards to move. Big blowout party for Rock employees downtown anyone? | ||
Mind_field Member Username: Mind_field Post Number: 535 Registered: 10-2003 Posted From: 209.240.205.61 |
"he wants to make sure they are down with the move" Well that settles it! They are staying in Analville. DAMN! I wish Dan G. would just bitch slap some sense into those overly paid mortgage brokers who will UNDOUBTEDLY oppose a move to downtown. Too bad. | ||
Bob Member Username: Bob Post Number: 875 Registered: 11-2003 Posted From: 64.12.116.204 |
Livonia is still better than Cleveland, although I still think Downtown is best. | ||
Mind_field Member Username: Mind_field Post Number: 536 Registered: 10-2003 Posted From: 209.240.205.61 |
At least they won't be moving to some god forsaken place that DOESN'T need investment like Novi, Troy, or Auburn Hills. I would rather see Rock move to downtown Cleveland than remain in Livonia. Cleveland is an awesome city and well deserving of a great company like this. At least they would contribute to a better urban environment somewhere, if it had to be somewhere other than downtown Detroit. Before I am so quick to jump to conclusions, I wonder what the prevailing sentiment is among Rock employees? Where do they want to go? But I think I already know the answer. | ||
Hockey_player Member Username: Hockey_player Post Number: 199 Registered: 10-2003 Posted From: 207.148.213.218 |
Great example of regional cooperation there. | ||
Ndavies Member Username: Ndavies Post Number: 1697 Registered: 10-2003 Posted From: 129.9.163.106 |
The tax isn't 3% it's 2.5% for city residents. It's 1.25% for nonresidents. | ||
Bobj Member Username: Bobj Post Number: 616 Registered: 11-2003 Posted From: 65.221.183.120 |
If Dan wants his employees to be down with the decision, I would bet it would be Livonia first, Downtown D, and lastly Cleveland. People usually don't want to relocate, so if the assumption about Dan's outlook is true, Cleveland is out. | ||
Jt1 Member Username: Jt1 Post Number: 7072 Registered: 10-2003 Posted From: 198.208.159.20 |
Will Rock allow organizations like Synergy and Shop Detroit to put literature at the current Rock offices. Maybe a little propoganda from pro-Detroit organizations? | ||
Bobj Member Username: Bobj Post Number: 619 Registered: 11-2003 Posted From: 65.221.183.120 |
Compuware let people do that at their Farmington Hills office before the move. | ||
Bobj Member Username: Bobj Post Number: 620 Registered: 11-2003 Posted From: 65.221.183.120 |
Question: Does anyone know if Compuware lost a significant number of employees due to the move Downtown?? | ||
Crew Member Username: Crew Post Number: 897 Registered: 02-2004 Posted From: 146.9.52.33 |
Why does everyone assume that just because someone works in Livonia they automatically hate Detroit? I know a few people who work at Rock and most of them are very pro-Detroit. Many of them are young professionals and at least one I know owns a business in the City. | ||
Mind_field Member Username: Mind_field Post Number: 538 Registered: 10-2003 Posted From: 209.240.205.61 |
I guess I shouldn't assume that. I'm sure there are a few Detroit boosters there, but the percentage of the workforce who would oppose the move is probably pretty significant. Enough to sway Mr. Gilbert against such a move. They are probably concerned about working in an unfamiliar environment, many will probably have longer commutes, and there will be concerns about the city income tax. I don't equate being opposed to a downtown move with hating Detroit. | ||
Jt1 Member Username: Jt1 Post Number: 7073 Registered: 10-2003 Posted From: 198.208.159.20 |
Consider age and its impact. I am guessing that Rock's workforce is younger than the average workforce and the younger populations are probably more open-minded to a move to Detroit. | ||
Crew Member Username: Crew Post Number: 898 Registered: 02-2004 Posted From: 146.9.52.33 |
Guess what? I bet you're all wrong and many Rock employees would welcome the move downtown. Sure, some of them would be opposed to paying CoD income tax but many will see the benefits of working here. | ||
Bob Member Username: Bob Post Number: 878 Registered: 11-2003 Posted From: 64.12.116.204 |
I paid non-resident income tax when I lived in the Lansing area and you honestly hardly notice it. | ||
Mind_field Member Username: Mind_field Post Number: 539 Registered: 10-2003 Posted From: 209.240.205.61 |
Crew, I really hope you are right! | ||
L_b_patterson Member Username: L_b_patterson Post Number: 293 Registered: 10-2003 Posted From: 70.229.196.246 |
fyi, i don't know if anyone knew this, but gilbert paid for all of his employees and the family of the top ones to go to cleveland for a visit earlier this year. Hell, they even got a private black eyed peas concert at the Q. | ||
Bob Member Username: Bob Post Number: 879 Registered: 11-2003 Posted From: 64.12.116.204 |
His paying for his employees to go to Cleveland is not a good sign. These are the kinds of jobs this state needs to keep to survive. | ||
L_b_patterson Member Username: L_b_patterson Post Number: 294 Registered: 10-2003 Posted From: 70.229.196.246 |
quick correction, the even occured in september | ||
Quinn Member Username: Quinn Post Number: 688 Registered: 01-2005 Posted From: 64.139.64.80 |
Bob...the employee thing was so that he could get extra bang for the buck. They renamed the Gund Arena to "The Quicken Loans Arena" or "the Q" and that announcement coincided with the anniversary party. I was there with my partner who works at Rock/Quicken. It was really amazing. Not to dis Detroit at all (this was my first time to Cleveland) but, they have their shit together. For all you worry-wards out there...Dan Gilbert WILL move the company downtown. This is his home...unless you're thinking something really cool like making a name for yourself in NYC with a huge building, you're going to try to make a name for yourself in your home-town. Mark my words... | ||
Skamour14 Member Username: Skamour14 Post Number: 37 Registered: 03-2005 Posted From: 67.185.180.156 |
like i said before... before I was so rudley interuppted... Just yell out bones, pick up yo scrilla... get you somes of thats tanquary, and a fat ass j... chill wit some hoes on woodward and git live.. like you was off the chain wit danny gilbert and holla later to L town!!!! | ||
Erikd Member Username: Erikd Post Number: 561 Registered: 10-2003 Posted From: 69.242.214.106 |
Out of all of the options, downtown Detroit is clearly the best one. Moving to Cleveland has no benefit. There will be no savings in employee wages, no increase in qualified local labor, and a big loss of local market. The cost of moving and/or replacing 4000 employees would be incredible, and there is no valid reason to do it. Building in Livonia offers no real benefit. A new HQ on 7 Mile or I275 would be a suitable upgrade, and it would be a fairly quiet and easy move. Downtown Detroit is the clear winner because of a few simple reasons: 1. Due to the tax credits, low-cost (or free) city owned land, existing parking garage and foundation (at the Hudson block), the cost of a new HQ in Detroit will probably be the cheapest to build. 2. The recent success of the SB, coupled with the Compuware move, will result in much less employee resistance to the move. 3. The biggest and best reason to move downtown- Building a new signature downtown HQ will result in positive press and free advertising that can not be bought. Rock Financial spends millions every year to advertise to metro Detroiters. A downtown move will give them dozens of front-page stories, major presence for downtown events and skyline signage from Comerica Park. Even more important than the free advertising (worth tens of millions), is the corporate validation that will come with a landmark HQ. If Rock builds a downtown HQ, they will become a household name, and join the ranks of GM, Compuware, and Comerica as a top-line, solid company. This move would create a ton of public trust, and separate Rock from all of the other mortgage companies that are running tons of TV and radio ads. | ||
Nellonfury Member Username: Nellonfury Post Number: 124 Registered: 03-2005 Posted From: 68.43.156.135 |
I'm with Erikd on this one. | ||
Ilovedetroit Member Username: Ilovedetroit Post Number: 2177 Registered: 02-2005 Posted From: 68.40.225.75 |
I hear they will be making a decision by March 31st. Keep your fingers crossed, pray to God, Allah, or Buddha, sacrifice a sheep, sleep with a virigin or whatever it is that you think will help! | ||
Detroitduo Member Username: Detroitduo Post Number: 557 Registered: 06-2005 Posted From: 194.138.39.53 |
I'm a virgin! Well, in German, virgin = Jungfrau. Which isn't entirely out of the scope....  | ||
Ilovedetroit Member Username: Ilovedetroit Post Number: 2179 Registered: 02-2005 Posted From: 63.149.5.130 |
Duo - Somehow I think your virginity is VERY questionable. I am sure there are LOTS of witnesses who would argue otherwise. Where I come from we call people like you "popular". | ||
Jt1 Member Username: Jt1 Post Number: 7106 Registered: 10-2003 Posted From: 198.208.159.20 |
I just call him a man whore. | ||
Motorcitymayor2026 Member Username: Motorcitymayor2026 Post Number: 638 Registered: 10-2005 Posted From: 24.231.189.137 |
has the city's quietness on the issue crossed anyones mind? All they did was acknowledge a meeting right?? Is their silence because there really is nothing, or is it beause they are looking for a major announcement...god i hope it is the latterq | ||
Lmichigan Member Username: Lmichigan Post Number: 3454 Registered: 10-2003 Posted From: 67.172.95.197 |
Most likely the latter. I have no doubt that Kwame is selling Mr. Gilbert and moon and more. If the mayor is good for nothing else, it's cheerleading his city. I don't think the governor, or the mayor and city leadership are going to lose out on this opportunity. | ||
Detroitduo Member Username: Detroitduo Post Number: 563 Registered: 06-2005 Posted From: 84.156.76.199 |
But... doesn't Gilbert need to be a friend or family member to Kilpatrick or the CC to get any benefits from the City? | ||
Nellonfury Member Username: Nellonfury Post Number: 125 Registered: 03-2005 Posted From: 68.43.156.135 |
At the skyscraperpage.com ,a member has posted an e-mail to reach the company to let them know that we want to see this happen! http://forum.skyscraperpage.co m/showthread.php?t=101746 | ||
Bobj Member Username: Bobj Post Number: 634 Registered: 11-2003 Posted From: 65.221.183.120 |
With all the mess with Delphi and GM, maybe Mr Gilbert can move into one of the Ren Cen Towers. | ||
Machoken Member Username: Machoken Post Number: 1171 Registered: 10-2003 Posted From: 68.85.155.145 |
That's our very own mind_field over at skyscraperpage.com. Me wonders how people have the time to participate in more than one detroit forum... | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 213 Registered: 01-2005 Posted From: 68.77.161.57 |
Anybody ever wonder about Rock's/Quicken's finances? Rock's in the business of, basically, selling other people's money. It generates real estate loans to folks by many comparitively complicated, unconventional financing plans. It sells most of the loans it generates to Countrywide. Rock doesn't keep the servicing; servicing is the long term revenue stream generated by the loan originator after it sells the loans (to Fannie Mae for example)and thereafter , for a fee, collects the loan payments, makes sure the taxes are paid and so forth. Servicing is worth a lot of money. Now, Rock makes a fee on each loan it generates. Generally, those fees are not very large with respect to the amount of the loan. It makes a loan, sells it, and is out of the deal. For a relative pittance. Most lenders would prefer to make no money generating the loan itself, and keep the servicing, where the real money is. What's suspicious is the fact that Rock spends a fortune in advertising etc. To sell dollars. In competition with 1000's of others, banks, S & L's, credit unions, other Fannie Mae approved lenders, and finally, other mortgage brokers such as Rock itself. I understand most of its employees actually making loans are on commission. The people I know in the mortgage business feel that it may be a big Ponzi scheme. I'm not in the business, but I understand it, and can't figure out how they do it and keep the doors open, in up and down, high and low interest rate environments. Gilbert sold Rock several years ago to Intuit, which created internet loan maker Quicken. Then not too long after, dumped the whole operation on the market. It paid Gilbert around $500,000,000 and Gilbert bought it back for around $250-300 million. Not bad. For him. I hope they move downtown though. | ||
Lowell Board Administrator Username: Lowell Post Number: 2418 Registered: 10-2003 Posted From: 66.167.58.14 |
This is a fascinating company and I get the feeling that they will continue to do well. The fact that they sell off their loans makes them even more appealing. They pocket their money and move on with no exposure and all the headaches of servicing the loans. And last year they closed 16 billion in loans [<-yes that is a b] and are the nation's largest online retail home lender. They can make some impressive claims too [taken from their site]. -"We've been recognized by FORTUNE Magazine as one of the "100 Best Companies to Work For" in America for three consecutive years. -We are the highest ranking financial institution and fastest growing company on FORTUNE's list! -We are #1 on Computerworld Magazine's list of the ”100 Best Places to Work in Information Technology, 2005”. -We are Named to Crain's Detroit Business "Cool Places to Work" list. The Michigan Business & Professional Association named us best overall on its "Top Ten Companies to Work For" in Metro Detroit." I'd bet that workforce will go cheerfully wherever Dan Gilbert / David Hall leads them. What appeals to me is the energy of this company and its mastery of marketing. If issuing loans were suddenly outlawed by some puritanical law I have the feeling this company would just as successfully be selling or doing something else within a year. They get the information age. They are also riding a marketing wave with the Pistons. When in the Palace I am amazed how they have literally wallpapered the place from thousand of thundersticks, to the wrap around video, to a mini-blimp. They're everywhere; they put Coke to shame. Right now they are hitting on all cylinders. I think downtown D would fit their dynamic posture perfectly. |
