OPINION:
As spring gives way to summer, the housing market enters its peak season — and with it comes the familiar optimism that the broader economy is poised for growth.
Inventory rises, sales boom and analysts look to these seasonal rhythms almost as a forecast for what lies ahead.
That is why a recent Detroit Free Press story on employee compensation at the country’s two largest mortgage lenders — United Wholesale Mortgage and Rocket Cos. — is so revealing. The numbers tell a story beyond compensation discrepancy, offering insights into powerful changes in the industry.
At first glance, the fact that the median salary is nearly three times higher at Rocket seems hard to explain. The total 2024 compensation for a median employee at UWM was $42,668, whereas at Rocket Cos., it was $112,820.
This immense gap would surprise most readers seeing it for the first time, especially since UWM surpassed Rocket as the largest mortgage originator in 2022. However, it likely was not a surprise to employees.
I generally discount online chatter that is too often nothing more than a whining echo chamber of discontent. Yet even a cursory review of Reddit threads from UWM workers suggests that something may very well be rotten in the state of Denmark.
On the flip side, Rocket has been a fixture on the Forbes 100 Best Companies to Work For list, coming in at No. 23 for 2026.
Employment data for the Detroit region cannot explain the gulf between the two companies either. The average annual salary in the Detroit metro area in 2023 was $70,471. A closer look at industry data shows the national average in financial services was $119,000, but only $92,000 in Detroit.
Rocket’s compensation aligns with the national average, while UWM’s is barely half the already lower regional average for financial services. UWM’s median salary is closer to that of a general office worker, suggesting that most are not paid in line with the sector in which UWM operates.
The immense pay gap reflects the difference in the tasks and responsibilities of the median worker in each company. This is where the real insight into numbers that initially seemed like simple clickbait emerges.
Rocket has been an industry leader in incorporating technology into the fabric of its business. It makes sense, as Rocket was the first to fill that online space that customers sought. Yet over the past few years, it has become clear that Rocket’s early adoption of artificial intelligence tools has transformed the company’s strategy — and freed its employees from mundane tasks to focus on higher-level work.
In a recent investor call, Rocket CEO Varun Krishna noted that its 2024 fourth-quarter loan volume has finally matched the 2022 first-quarter numbers from before the COVID-19 downturn and the doubling of 30-year mortgage rates. Mr. Krishna said that Rocket returned to pre-pandemic levels with just half the employee headcount.
He said: “We didn’t just work harder. We structurally doubled the capacity of every production team member through technology. This is the definition of AI-driven operating leverage.”
Just over a year ago, the same Detroit Free Press reporter wrote about how Rocket was downsizing for the third consecutive year, while UWM had increased its workforce by one-third. As the housing market showed signs of growth, Rocket was being challenged for not following the traditional yo-yo staffing that mirrors the rise and fall of mortgage rates and the seasonal spikes in activity.
As recent reporting on employee compensation suggests, Rocket has built technology that automates lower-order tasks, allowing the company to scale up without relying on low-skilled workers who can be easily cycled out as seasons change.
The real question is not which company is a better place to work. From the outside, the answer appears self-evident. The question is which company is better positioned to capitalize when the housing market snaps back.
Forget the pay gap; the technology gap is more alarming.
• Saulius “Saul” Anuzis is a former chairman of the Michigan Republican Party.
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