Rocket Mortgage Exits Canadian Lending Market with Commitment to Clients
Rocket Mortgage has declared its intention to cease operations in the Canadian lending market, as noted in a company statement. The organization reassured clients that all ongoing loans will be processed smoothly, emphasizing its dedication to customer support during this transition period.
Impact on Employees
While the specific number of employees affected by this decision has not been disclosed, it has been communicated that the majority of team members from Rocket Mortgage Canada will receive severance packages. These packages include health coverage and career transition assistance. Furthermore, there may be opportunities for some employees to join other segments of Rocket’s business operations in Canada, as reported by local media.
Background on Rocket Mortgage Canada
The Windsor-based Edison Financial, a subsidiary of Rocket Mortgage, was rebranded as Rocket Mortgage Canada in August 2022. This strategic move aimed to unify the brand within the Canadian market, tying it closely to Rocket’s established identity.
Recent Legal Developments
In a related legal context, the Consumer Financial Protection Bureau (CFPB) has recently concluded its lawsuit against Rocket Homes and associated parties, including the Jason Mitchell Group (JMG). The lawsuit, which has been officially dismissed with prejudice, alleged that Rocket Homes engaged in practices that unfairly guided clients to Rocket Mortgage and Amrock, an affiliated settlement services provider.
Details of the Lawsuit
The CFPB’s claims indicated that between 2019 and 2024, Rocket Homes may have incentivized real estate agents to direct their business towards Rocket-affiliated entities. Additionally, specific allegations aimed at JMG and its founder, Jason Mitchell, included that they encouraged these referrals through a rewards program that provided top-performing agents with $250 gift cards labeled “Dog Bone.”
Company Rebranding Initiatives
Earlier this year, Rocket Companies, the parent organization of Rocket Mortgage, undertook a consolidation of its numerous subsidiaries into a single cohesive brand. This involved renaming Amrock to Rocket Close and rebranding its title insurance services as Rocket Title Insurance Co. Furthermore, the wholesale mortgage division previously known as Rocket Pro TPO is now referred to as Rocket Pro.
As Rocket Mortgage transitions away from its Canadian lending operations, the company remains focused on supporting its clients and employees during this pivotal moment.
