Rocket Companies, Inc (NYSE: RKT) shares traded higher Monday after selecting Varun Krishna as the CEO, effective September 5, 2023.
Krishna will succeed Bill Emerson, who has served as interim CEO since June.
Emerson will continue in his interim role until Krishna joins the company and will remain on the Rocket Companies Board while working with Krishna to ensure a smooth leadership transition.
Krishna has over 20 years of experience building consumer platform strategies for leading global fintech companies. Most recently, Krishna served as Executive Vice President and General Manager, Consumer Group of Intuit Inc (NASDAQ: INTU).
Bob Walters informed the board of his intention to retire on September 5, when he will step down from his roles as CEO of Rocket Mortgage and President and COO of Rocket Companies.
Krishna will succeed Walters at that time as Rocket Mortgage CEO, and Emerson will assume the roles of President and COO for Rocket Companies.
In February 2023, former Rocket Companies CEO Jay Farner announced his decision to step down from his position in June after more than 27 years with the company.
Farner was appointed the CEO of Rocket Mortgage in 2017 and later became CEO of Rocket Companies as part of its IPO.
Rocket Companies provides customers with mortgage, real estate and financial services. According to Bankrate.com, Rocket Mortgage is the largest mortgage lender in the United States by a significant margin.
Rocket Companies stock has gained 57% year-to-date. The 30-year FRM stands at 6.35%, while the 15-year FRM is at 5.75%, hinting at a moderating inflation rate.
A stable rate environment could drive more borrowers towards refinancing or purchasing new homes. However, the rapid buying rate indicates that the housing market demand remains strong despite elevated mortgage rates.
Price Action: RKT shares traded higher by 3.14% at $11.17 on the last check Monday.