Rocket companies on Tuesday launched a loyalty program to lure potential buyers into its ecosystem amid one of the toughest mortgage markets in decades.
Rocket Rewards will distribute points for financial transactions on the Rocket Platform, such as using the company’s mortgage calculator, reading educational articles, or watching informative videos. In the first phase of the program, customers can use points to get discounts on their closing costs when buying a home through the affiliate. Rocket mortgage.
To start, customers will receive a welcome bonus of 7,500 points on their first rewards activity – or $75 in closing cost savings.
“We know not all customers are ready to get a mortgage with us right now, but, through bank rewards that can add up over time, we offer added value that no other lender in the world can afford. our space can’t match,” Jay Farner, vice president and CEO of Rocket Companies, said in a statement.
Soaring mortgage rates above 7% dramatically reduced the public’s appetite for purchase and refinance loans. At Rocket, mortgages fell to $34.5 billion during the second quarter of $53.8 billion in the first quarter. Further declines are expected to be disclosed Thursday when the company reports third-quarter results.
Jenn Steeves-Kiss, Director of Experience for Rocket Plant, the fintech division of the company, said the first phase of the rewards program is to provide customers with knowledge about the home buying process, with Rocket “just scratching the surface of what’s possible” with Rocket Rewards.
However, the company is exploring what’s possible in the future, “whether it’s finding innovative ways to offer personal loan discounts, free Rocket Money premium subscriptions, or even cash on installing solar panels“, he said in a statement.
Based on a sponsored survey, the company says 88% of customers said they would appreciate a Rocket affiliate rewards program by maintaining a long-term relationship with the brand.
Rocket has launched initiatives to attract homebuyers to a more competitive landscape. In September, the company announced a program dubbed “Anti inflationwhich reduces homebuyers’ monthly mortgage payments by a full percentage point for the first year of their loan.
Rocket Mortgage covers the difference in mortgage payments for the first 12 months through a special escrow account. For Rocket Pro TPOits wholesale branch, door-to-door sellers or real estate agents will fund the program.