Source: Housing Wire —
Detroit-based Rocket Companies, the parent of Rocket Mortgage, generated a whopping $1 billion profit in the first quarter, up from $865 million the previous quarter.
Compared to its main competitors, the lender seems to be in a comfortable place. United Wholesale Mortgage (UWM) reported a much lower profit of $453.2 million from January to March, buoyed by adjustments in the fair value of mortgage servicing rights (MSRs). Meanwhile, LoanDepot had a $91.3 million loss in the same period.
But Rocket has its own challenges. Loan origination is dropping, as purchase volumes need to increase fast to replace refis lost due to surging mortgage rates. Analysts have started to question whether the company will deliver profits in the coming quarters. Meanwhile, top executives say they will protect margins.
