That is one of the reasons why Rocket's operating margins are so high - about 62%. The higher the margin between the wholesale and retail cost of the mortgage, the more profit the company makes off the mortgage. That's a high number, as most competitors are well below that. Its gain-on-sale margin is 4.4%, down slightly from the third quarter but up 29% year over year. It is not only preferred by customers for its ease and convenience but it saves the company a lot of overhead costs. Rocket was one of the first companies in the industry to move to online transactions, and now its all-digital business model is extremely efficient, as just about everything can be done on the Rocket app. But Rocket, as the leading home mortgage lender in terms of loan originations, stands out for a few good reasons. The stellar performance had a lot to do with the record low 0% interest rate range, which created a surge of home refinancings, as well as home purchases. Net revenue was up 144% year over year in Q4 to $4.7 billion, while net income was up 277% to $2.8 billion. It had a record-setting year in 2020, generating $320 billion in loan originations, including a record $107 billion in the fourth quarter. Rocket - the parent company of Quicken Loans and Rocket Mortgage - went public last August as the nation's leading home mortgage lender.
