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For All Movement Award - Quicken Loans

Speakers: Mike Malloy, Chief People Officer, Quicken Loans

Quicken Loan's Chief People Officer, Mike Malloy gracious accepted onstage the 2020 For All Movement Award, presented by Great Place to Work's CEO Michael C. Bush. This award represented Quicken Loans' outstanding positive impact the company has made to its people, to surrounding businesses in the Detroit area and to the world.

Show Transcript
Michael Bush:

Okay. Next, we have another award to give, which is our For All Movement Award, which is the first time we've ever done this. And so, we're acknowledging a company that has rebuilt, really, two cities. So for us, this is a perfect example of a company that proves you can be better for business, better for people, and better for the world. Today, we're giving the For All Movement Award to Quicken Loans. And please welcome the Chief People Officer, soon to be the chief amazement officer of Quicken Loans, Mike Malloy.

Mike Malloy:

Oh, hi.

Michael Bush:

All right. Stand here just for a moment. This is for your marketing people. They're happy now. I'll take this [crosstalk 00:00:47] for you.

Mike Malloy:

Awesome. All right. How's everybody doing? All right. I'm excited to be here. So I'm excited to be here to tell you a little bit about how we live this idea of being for all. And when I first met Michael and I read his book, I realized, this is exactly what we do. This is exactly how we approach the world. This is exactly how we think about what we do.

Mike Malloy:

And for us, it all starts with our culture, and everything we do comes from our culture. And so I'm going to talk about one piece of that culture, one of our isms as we call them, which is being obsessed with finding a better way. And so let's talk a little bit about that. That's me. It starts with us, with our founders. See that guy in the middle holding the NBA Championship trophy? That's Dan Gilbert. You may know him as the owner of the Cleveland Cavaliers and a guy who's had an on and off relationship with LeBron James for a number of years.

Mike Malloy:

We know him as this dude. That's Dan. He's an amazing human being. He is a visionary. He started the company with himself, his brother, and another friend in a 10' by 12' office in 1985 with this idea that they could do some mortgages. Last year, we did 145 billion in mortgages. Why? Dan's vision starts with one thing. We will live our culture every day and we'll be clear about it to every human.

Mike Malloy:

Our cultures are represented by what we call our isms. We have an isms book. We'll have some isms books after the presentation if anyone wants them. Stephanie Hafner Biram, sitting right there, will have a box of isms books if anybody wants to see how we do this. But they are the things we do and they are about who we are, not what we do.

Mike Malloy:

Today I'm going to talk about being obsessed with finding a better way. You see some of the other isms there in the red. Every client, every time, no exceptions, no excuses, but we're talking about being obsessed with finding a better way because that's a story that Michael asked me to tell about how we impact our communities.

Mike Malloy:

I want to start with our clients because none of it happens without us serving our clients and being obsessed with finding a better way.

Mike Malloy:

Now look, the mortgage business, when Dan started in, it was like a butcher shop. You had to be in the local neighborhood to do it. There was no other way to do mortgages. It wasn't possible. Dan rejected that idea, and with the amazing leaders he grew around him, he decided in 1998 that, you know what?

We're going to take this thing and go to the internet. 1998. Nine years before the invention of the iPhone, for those of you who were in the business world back then, dial up internet, right? You remember the boop deep boop, that [inaudible 00:04:12]. It was horrifying. Created a 50 state centralized mortgage company with efficient process and started dominating the competition by doing something that was believed, not just to be hard, not just to be different, but actually not possible.

Mike Malloy:

So then fast forward a number of years, the company grows, but we realized that's actually not good enough. So Superbowl 2016, we launched Rocket. What is that? This idea that you don't need to have a stack of paper to get a mortgage. You should be able to use data and information, and being obsessed with finding that better way and doing things that, again, believed not to be possible.

Mike Malloy:

And then this last Super Bowl, our friend Jason Mamoa got comfortable. I just threw that up there because we like the ad. Though I do have one thing for you. Mortgage rates are at their all time low. If you haven't refinanced, call someone. I'm not kidding. You will save a bunch of money for your family. If you don't know who to call, call Quicken Loans. Tell them Mike Malloy... I'm not kidding. They all know who I am. Tell them Mike Malloy referred you and they will give you $500 back. That's not a joke. That's not a joke. My email will be on the last slide here. But seriously, save your family a bunch of money. Not a joke. Us, anybody, it's a good deal for your family. All right. Moving past Jason.

Mike Malloy:

Let me talk about our team members. There is nothing more important to us than our team members. I sign every email I send with the same line, "Love your team members. Love your clients." Everything starts with our team members. Every company that they had shown up here on the wall as we were sitting here with the program getting ready to start, best large companies, best small companies, best midsize, best places for women, best places for diversity, starts not in boardrooms, though it's awesome to hear about what the boards are doing, and it starts not in the c-suite. We don't actually have a c-suite, but it doesn't start there either. It is the team members who win those awards. It is the team members who drive the business, and it is the team members who determine the success or failure of any organization.

Mike Malloy:

And for us, we watch that every day. We watched the Fortune list, we watched our great place to work certification, and we have our clients tell us. We have been eligible for a J.D. Power award 16 times, 10 for mortgage origination, six for mortgage servicing. We have won 16 times. Why? Because our team members are empowered to do the work they need to do to serve our clients. How do they know what to do? They have an isms book on their desk. The culture defines every single thing we do.

Mike Malloy:

Now, we also do our best to treat those team members well, and that's part of this For All movement, right? So what's that? That actually is where the Detroit Pistons and Detroit Redwings play known as Little Caesars Arena. That is 18,000 of our team members packed into there for our all companies meeting. Why? Why not? All Right? Had a little fun. That middle, that's Big Sean, right? He's a Detroit resident. He went out, talked to Dan a little bit, and then, you know, told us how he dropped an L and then bounced back like the city of Detroit. All right?

Mike Malloy:

We recognize team members, we work to recognize them. We make sure we care about them, but it's that next little thing. So at Quicken Loans... This, by the way, this is most dressed up I've been in months. We usually wear jeans and whatever, but everybody gets dressed up once a year for the Rock Honors, we call it, the Rockys. And you can't see that statue very well, but I will tell you that's an exact replica of an Academy Award, made by the same company that makes the Academy Awards. Do we have to do that? No. Does it mean something to the team members who receive it? Yes. Does every team member who receives a Rocky keep it at their cube on their desk? Yes. 100% of the time.

Mike Malloy:

We also try to make sure we're serving them everywhere they are. Anybody can open a health clinic. We opened a thing called the Rock Health Collective. Built it off a high end spa. Tried to make it somewhere people would come and go.

Mike Malloy:

But the thing that really connects our team members to our mission and really makes them feel connected to something larger than themselves is when we live our culture in the way we impact our communities. And that's what I want to talk about here and that's what Michael asked me to talk about.

Mike Malloy:

So that picture, it's a little bit like Dan with the mustache. That's the old Quicken Loans out in the suburb. That's a place called Livonia, Michigan. And that was a wildly successful company on its way to becoming the largest mortgage company on earth.

Mike Malloy:

And that's 2009, middle of the financial crisis. And Dan Gilbert said, "You know what, we're doing okay. We came through it okay." We didn't make a lot of subprime loans and a lot of other things, so Quicken Loans came through the mortgage crisis just great. And he said, "Our city is suffering." And whatever vision you have of Detroit, in 2010, that was probably correct because that's about what it looked like.

Mike Malloy:

And you can see a lot of those buildings are empty and hollowed out, and there's some you can't really see on here where the windows were all blown out. There was famously a building that's toward the edge of the frame here, and the building was completely dilapidated half a block from where our offices are now. And someone had spray painted on the side, "Building free with a cup of coffee." And Dan said we're going to take the company, and we're going to invest all our time and energy and effort, and most of his personal fortune, in trying to bring back the city of Detroit.

Mike Malloy:

And this is what Detroit looks like today. It is an amazing, vibrant, extraordinary city that we now have, we started with 3,400 hundred team members in 2010, we now have almost 20,000 in downtown Detroit. Our sister company, Bedrock, which is our real estate holding company, owns more than 120 buildings in downtown Detroit.

Mike Malloy:

We've been doing similar things in Cleveland. As I said, Dan owns the Cavs. People ask why the Cavs. The Pistons weren't for sale, that's the reason. But we're doing similar things in Cleveland. But this is not us, this is working with hundreds of other companies, public and private, you know, stakeholders, the governor, the mayor, all working together to try to bring back a vision.

Mike Malloy:

And one of the things we work on a lot to make the city is placemaking. And our team members believe this. This is our first national building. It was hollowed out and empty when we bought it. This is what it looks like today. This park didn't even exist. It was a street corner where, you know, not great stuff happened. It's right in front of our headquarters building. We built a park. We built a beach. There are Zoomba classes. In the winter, it's an ice rink. All right? We took alleys where people were getting mugged and other things, we turned them into public art exhibits. All right?

Mike Malloy:

Does any of this have anything at all to do with mortgage lending? Not one bit. But our team members understand that by coming to work and serving their clients, we are part of something much, much larger than ourselves. How do I know that? Michael helps me find out. 96% of our team members feel good about the work we do in the community. 96%. everyone feels it.

Mike Malloy:

So how do we think about that and then how do we not rest on that? Because for us, right, for us, it's not enough. People who are from Detroit... I don't if anybody's here who's from Southeast Michigan? Yeah? Here we go. So my team's right here. You know that the suburbs are lovely, and the central business district, if you've there, it's pretty cool, but the neighborhoods are still rough and we can't let that happen. And the city won't ever recover until those neighborhoods recover.

Mike Malloy:

And so we ask ourselves, how can we solve that problem? Because blight, the blight of an entire city feels like one of those big insoluble problems, intractable problems. So we've asked ourselves, how can we be obsessed with finding a better way also in the community, the broader community, not just downtown Detroit, but the broader community.

Mike Malloy:

So I want to tell you a little story. This is a lovely lady named Pearly Mack. Pearly, like a lot of Detroit residents, after the financial crisis, was living in a home she rented from a landlord. What Pearly didn't know was that her landlord wasn't paying his property taxes. And when we met her, she was about to get kicked out because the state, the city, actually the county, was going to foreclose on her home. In Detroit, there are a staggering 150,000 tax foreclosed properties, and through no fault of folks who were involved, that was contributing to blight.

Mike Malloy:

I'll give you a quick example. Exiting the financial crisis, this may not be the nicest neighborhood, this may not be a place where you'd be excited about, but it's a damn sight better than that, tax foreclosed properties falling into ruin and literally falling apart and destroying the neighborhoods in which they sat.

Mike Malloy:

And so we hired hundreds and hundreds of Detroit residents who were otherwise unemployed, and we gave them information and we sent them door to door and a program we called Neighbor to Neighbor. And we built an app for it because we have an awesome technology team. And what did they do? They talked to people, made them aware, educated them. If you are a homeowner and you owe your property taxes, you may be eligible for an abatement so you will not be foreclosed upon and can stay in your home. 10,000 people have kept their homes as a result of that, right? 10,000.

Mike Malloy:

And for people like Pearly Mack, we intervened between her landlord and the state and the county and got it out of foreclosure and allowed her to continue paying rent, but now that rent was actually a note. And in one year, for a grand total of $3,500, yes, $3,500, not thousand, not $350,000, $3,500, Pearly MacK became the owner of that home.

Mike Malloy:

Again, we are about home, we are about making homes. We're not doing mortgages on those homes, but we are trying. We are looking at problems that seem intractable and being obsessed with finding a better way. Most people look at blight, at thousands and thousands, 150,000 homes and just throw up their hands, and instead, we know we can't fix it all, but we can try.

Mike Malloy:

So we looked at another really massive problem because we think about this nationally too. And one of my favorite podcasts is one called Solvable. Malcolm Gladwell's company puts it on. It's very cool. And the very first episode they have is entitled Homelessness is Solvable. And the person who's on that is the head of a group called Community Solutions out of New York, and they are our partner and we are a major funder of their organization because our goal is to end veteran homelessness and, ultimately, chronic homelessness in America, and we believe it's possible.

Speaker 3:

These are the people in your neighborhood, in your neighborhood. They're the people that you meet each day.

Speaker 4:

Rocket Mortgage is working with communities throughout America to end veteran homelessness because building great neighborhoods starts with being a great neighbor.

Mike Malloy:

And so that's what we do nationally. And these folks have come out of homelessness, and we work with community solutions on permanent supportive housing and other initiatives, and with state and local and federal officials to try to find solutions. And the extraordinary thing is it is possible. 11 communities have ended veteran homelessness in America in the last two years. And more amazingly, three communities have ended chronic homelessness entirely. It is solvable if you are obsessed with finding a better way.

Mike Malloy:

And so that is how we attack these problems and think about this. And then we also enable our team members to be out in our communities, to do any kind of thing that they love. And we set up hundreds and hundreds of events across the city, across our regions and everywhere we are, which is Detroit and Cleveland, but also Charlotte and Phoenix and Cerritos, California and [inaudible 00:19:28], Pennsylvania and a million others, to find ways to get those team members involved in things that they are passionate about.

Mike Malloy:

And most companies get to about 30 to 35% team members involved in volunteering and giving. Our number is 70%. our team members participate. They go out in their communities every single day working to try to find a better way.

Mike Malloy:

So I will close with this. I've got 42 seconds left. I invite you to come see us in Detroit. If any person in this room would like to come, we would love to have you. We run tours, we talk about the story, we talk about what we're doing and how others can get involved. Dan G likes to say, "Once we get them here, we got them." If you need to have a place to open a new office, call me. We have space for you in Detroit. We are absolutely committed to brazing the community, to empowering our team members, to serving our clients, and it all starts with our living, our isms. I'm Mike Malloy. There's my email. Thank you very much.