Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster. event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

Loan quality lessons learned from 2020

HousingWire recently spoke with Trevor Gauthier, CEO of ACES Quality Management, about the effects of 2020 on loan quality and what lenders should expect regarding loan quality and risk management this year.


Quicken Loans parent Rocket Companies reportedly slashing IPO from as high as $3.3 billion to $2 billion or less

The nation’s top mortgage lender is expected to price its IPO below expectations at $18 to 20 per share

Rocket Companies announced post-publication that it had priced its IPO at $18 a share, and that it is selling 100 million shares. This means it is seeking to raise $1.8 billion in its offering.

Rocket Companies, parent company of Quicken Loans, is expected to price its initial public offering (IPO) at a significantly lower price than originally anticipated, according to multiple reports.

Earlier today, Crain’s Detroit Business reported that the nation’s top mortgage lender is expected to price its IPO below expectations at $18 to $20 per share, according to unnamed “people familiar with the matter.” It’s also reportedly only selling 100 million shares in its offering, lower than the 150 million it had originally planned.

With the revised numbers, that means Rocket Companies is seeking to raise about $1.8 billion to $2 billion instead of the up to $3.3 billion originally projected.

The shares are expected to begin trading on the New York Stock Exchange on August 6, under the ticker symbol “RKT.”

Rocket Companies has not responded to requests for comment on its pricing.

On July 7, we reported on the nation’s largest online mortgage lender dropping its S-1. Then on July 28, HousingWire reported that, according to its S-1A filed with the U.S. Securities and Exchange Commission, Rocket planned to offer 150 million shares of its common stock at a price of $20 to $22 per share. That means the company aimed to raise between $3 billion and $3.3 billion in its IPO.

At the time, Rocket Companies had said it was actually registering a total of 172.5 million shares, including 22.5 million shares that underwriters had the option to purchase.

According to Crain’s Detroit Business: “The reduction comes as investors pushed back on the company’s valuation, believing it should be priced as a consumer or financial company rather than a technology business.”

Founded in 1985, Quicken Loans has seen record numbers of refinance and purchase applications in recent months in the midst of the COVID-19 pandemic. But investors remain cautious.

In its S-1A, Rocket also revealed its preliminary financial results for the second quarter of 2020, which it noted are not complete and will not be available until after the completion of its offering.

For the second quarter of 2020, based on preliminary results, Rocket estimated that its total revenue, net, was between $4.93 billion and $5.13 billion and net income was between $3.35 billion and $3.55 billion.

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