Mortgage bankers posted huge profits from their loan origination and secondary marketing activities during the second quarter of 2020. Servicing, not so much. (Includes data chart.)
Two Harbors and Front Yard recently terminated their partnerships with their respective external managers. However, Two Harbors’ refusal to pay a termination fee has landed the REIT in court.
The second quarter of 2020 generated the strongest profits from mortgage banking that the banking industry has seen in years. MSR accounting issues were a drag, but production volume and margins soared. (Includes data chart.)
On Thursday, Rocket Companies, the parent of Quicken Loans, will debut on the NYSE. If warmly received, the mortgage IPO could pave the way for other deals.
The parent company of Quicken Loans splurged $905 million on marketing last year, helping the nonbank become the second largest mortgage lender. The firm is now ready to launch an IPO.