Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Mortgage servicers take steps to support borrowers amid COVID

Call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times.

Mortgage

Why Jay Farner is “puzzled” by Rocket’s disappointing stock price

Despite record origination and $6.55B in profits YTD, Wall Street hasn't embraced the lender. We look at why

Jay-Farner-Quicken-Loans-HW

You can understand Jay Farner’s frustration: Rocket Companies just had the most productive quarter in the history of residential mortgage lending. It thumped competitors with a record $89 billion in originations in the third quarter, and made $3 billion in profits. In fact, through the first three quarters of the year, Rocket has made a stunning $6.55 billion in profits.

The highlights from the third quarter alone were impressive by any standard: Rocket claimed big gains in Millennial adoption of its tech platform. It also inked several partnerships that could boost its purchase business, something analysts and investors have said they want to see in order to justify long-term forecasts. And though gain-on-sale margins fell from 5.19% to 4.52%, they were still well above expectations.

Rocket announced that it would be buying up to $1 billion in common stock over the next two years, which should raise the price. Add that to a low-rate environment that is expected to continue well in 2021, and the forecasts should be quite favorable, right?

Despite all that, Rocket’s stock at the close of business Wednesday was trading at a ho-hum $21.60, slightly above the $21.50 price it closed at on its Aug. 6 debut. As of Thursday at 1:45 p.m. EST, it’s been trading around $21.76.

Farner appeared on Jim Cramer’s “Mad Money” show on Wednesday evening, where the two discussed the confounding situation.

“That frankly makes no sense to me,” Cramer said.

Farner replied: “You’ve got me puzzled too on what’s going on with the stock. We’re super excited about what we’re doing over here.”

The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

Most Popular Articles

Should government help create housing market supply?

Some folks have some creative ideas to increase inventory. I appreciate the effort to throw around ideas; we need to have more discussions like this. The fact is that the economic ecosystem is much like a biological ecosystem. It’s hard to inject new things without impacting others. HW+ Premium Content

Apr 12, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please