Rocket Companies Inc (NYSE: RKT) stock lost over 2.1% in the pre-market session (Source: Google finance) after the company posted lower than expected results for the third quarter of FY 20.

The company has total liquidity of $6.9 billion, which includes $3.5 billion of cash on-hand, $2.8 billion of undrawn lines of credit, $0.3 billion of undrawn MSR lines, and $0.3 billion of corporate cash used to self-fund loan originations which could be transferred to funding facilities (warehouse lines) at the option.

Subsequent to the end of the quarter, the company had repaid the $1.25 billion of 5.75% senior notes due 2025 with funds received from the $750 million of 3.625% senior notes due 2029, and the $1.25 billion of 3.875% senior notes due 2031, issued on September 14, 2020.

Moreover, the net client retention rate was 92% and client refinance recapture rate was 82% over the twelve months ended September 30, 2020. As of October 31, 2020, approximately 84,000 clients, or 4.1% of the total servicing portfolio, were on a forbearance plan related to COVID-19, which compares favorably with the overall industry figure of 5.8% reported by the Mortgage Bankers Association as of October 25, 20207 and with the August 31, 2020 figure of 4.7%.

RKT in the third quarter of FY 20 has reported the adjusted earnings per share of $1.21, while reported the adjusted revenue growth of 163 percent to $4.74 billion in the third quarter of FY 20.

Additionally, the company had approved a $1 billion share repurchase program effective November 10, 2020.

For the fourth quarter, the company expects closed loan volume to be of between $88 billion and $93 billion, which represents an increase of 73% to 83% compared to $50.8 billion in the fourth quarter of 2019. Q4 Net rate lock volume to be in the range of between $80 billion and $87 billion, which represents an increase of 82% to 98% compared to $43.9 billion in the fourth quarter of 2019. Q4 gain on sale margins to be in the range of 3.80% to 4.10%, which would be an improvement of 11% to 20% compared to 3.41% in the fourth quarter of 2019.

On the other hand, the company has forged a new marketing partnership with Realtor.com that combines home search and verified pre-approval in a unique way. The Company announced a first-of-its kind partnership with Mint by Intuit, which integrated Rocket Mortgage into the Mint app via an API to create a fast, simplified refinance experience for homeowners.