10-Q filings with the SEC reveal additional information regarding the financial wherewithal of public mortgage lenders in the second quarter.
Details from mortgage lender Q2 filings you may have missed
August 19, 2024 5:00 AM
Mr. Cooper
Mr. Cooper's second quarter earnings were notably impacted by its acquisition of Flagstar, which is expected to enhance the company's presence in the servicing sector. The mortgage lender and servicer reported a net income of $208 million , a jump from the $181 million it earned in the first quarter.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Mr. Cooper entered into an agreement to purchase assets and liabilities related to Flagstar Bank's mortgage servicing and third-party origination operations on July 24. The purchase price for this transaction is approximately $200 million in cash, subject to adjustments. Additionally, Mr. Cooper will pay an aggregate purchase price of approximately $1.4 billion at closing for the acquisition of MSRs, its SEC filing shows.
- Mr. Cooper highlighted its efforts to help low-income and first time homebuyers, originating approximately 4,900 customers with low FICOs (<660), 4,600 customers with income below the U.S. median household income, 6,700 first-time homebuyers, and 1,700 veterans, in the six months ended June 30. The lender and servicer originated approximately 8,200 Ginnie Mae loans, which are designed for first-time homebuyers and low- and moderate-income borrowers, comprising $2.7 billion in total proceeds. Once these loans are originated, the underserved borrowers become Mr. Cooper's servicing customers.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Mr. Cooper entered into an agreement to purchase assets and liabilities related to Flagstar Bank's mortgage servicing and third-party origination operations on July 24. The purchase price for this transaction is approximately $200 million in cash, subject to adjustments. Additionally, Mr. Cooper will pay an aggregate purchase price of approximately $1.4 billion at closing for the acquisition of MSRs, its SEC filing shows.
- Mr. Cooper highlighted its efforts to help low-income and first time homebuyers, originating approximately 4,900 customers with low FICOs (<660), 4,600 customers with income below the U.S. median household income, 6,700 first-time homebuyers, and 1,700 veterans, in the six months ended June 30. The lender and servicer originated approximately 8,200 Ginnie Mae loans, which are designed for first-time homebuyers and low- and moderate-income borrowers, comprising $2.7 billion in total proceeds. Once these loans are originated, the underserved borrowers become Mr. Cooper's servicing customers.
Rocket Mortgage
The industry giant posted $178 million in net income for the second quarter, a positive financial metric despite some other wavering figures. Rocket's gain-on-sale margin was 299 basis points, up year-over-year but down slightly on a quarterly basis.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Rocket Money, thecompany's personal finance app , saw subscription revenues grow to $65,578 for the three months ended June 30, up from $42,994 during the same period in 2023. For the six months ended June 30, subscription revenue was $126,169, SEC filings show.
- Amrock, thetitle and settlement services unit of Rocket Cos, saw revenue for appraisals dip in the second quarter. Appraisal revenue, net of intercompany eliminations, came in at $9,473 and $12,953 for the three months ended June 30, 2024 and 2023.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Rocket Money, the
- Amrock, the
Guild Mortgage
Guild Mortgage saw the benefit of its efforts to gain market share, more than doubling its origination volume and seeing a 32% increase in its net income in the second quarter. The majority of that volume (92%) was purchase business, the company said.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Guild's average number of full-time employees increased by approximately 18% for the six months ended June 30, 2024, compared to the same period in 2023.This growth is attributed to acquisitions and organic recruiting efforts. Guild Holdings Company operates approximately 480 branches across 49 states and the District of Columbia, its 10-Q filing shows.
- The company's quarterly filing revealed the price tags on prior acquisitions. Apart from acquisition of Academy Mortgage, which Guild paid $13.4 million for, the price tag for acquiring certain assets of First Centennial Mortgage Corporation, Cherry Creek Mortgage LLC and Legacy Mortgage, LLC for a total fair value consideration of $15.4 million.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Guild's average number of full-time employees increased by approximately 18% for the six months ended June 30, 2024, compared to the same period in 2023.This growth is attributed to acquisitions and organic recruiting efforts. Guild Holdings Company operates approximately 480 branches across 49 states and the District of Columbia, its 10-Q filing shows.
- The company's quarterly filing revealed the price tags on prior acquisitions. Apart from acquisition of Academy Mortgage, which Guild paid $13.4 million for, the price tag for acquiring certain assets of First Centennial Mortgage Corporation, Cherry Creek Mortgage LLC and Legacy Mortgage, LLC for a total fair value consideration of $15.4 million.
Loandepot
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Loandepot recognized $26.9 million and $41.6 million, respectively, of expenses related to its data breach during the three and six months ended June 30, 2024. The company submitted claims to its cybersecurity insurers for reimbursement of some of the costs, expenses, and losses stemming from incident. The company has received $15 million of reimbursements from its cybersecurity insurers thus far, SEC documents show.
- As of June 30, 2024, Loandepot had 4,246 employees compared to 4,683 employees as of June 30, 2023. The company reported a 10.6% decrease in personnel expenses, attributable to lower salaries and a 9.3% decrease in headcount related to its
United Wholesale Mortgage
In its second quarter earnings, UWM Holdings beat analyst estimates on originations and gain on sales margin. For the second quarter it posted net income of $76.3 million compared with $180.5 million three months earlier and $228.8 million one year ago.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- UWM Holdings reported $160.3 million in expenses for "salaries, commissions, and benefits," marking a 22% rise from the $131.4 million recorded during the same period in 2023. This increase is primarily due to a higher average number of employees, indicating that UWM Holdings is expanding its workforce in preparation for a boost in production volume.
- UWM notes in its filing that it worries about its "dependence on the GSEs and the risk of changes to these entities and their roles, including, as a result of GSE reform, termination of conservatorship or efforts to increase the capital levels of the GSEs."
Here are additional takeaways from the company's 10-Q filing with the SEC:
- UWM Holdings reported $160.3 million in expenses for "salaries, commissions, and benefits," marking a 22% rise from the $131.4 million recorded during the same period in 2023. This increase is primarily due to a higher average number of employees, indicating that UWM Holdings is expanding its workforce in preparation for a boost in production volume.
- UWM notes in its filing that it worries about its "dependence on the GSEs and the risk of changes to these entities and their roles, including, as a result of GSE reform, termination of conservatorship or efforts to increase the capital levels of the GSEs."
Finance of America
Finance of America remained in the red during the latest quarter but moved closer to profitability. The company, which focuses on home equity withdrawal products used by older adults, recorded a $5.12 million net loss in the second quarter , down from $20.3 million in red ink in the first three months this year.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- The reverse mortgage lender's total expenses decreased $25.0 million, or 22.7%, primarily due to cost-cutting measures associated with therestructuring of its business announced in 2022.
- Total salaries, benefits, and related expenses decreased $5.4 million, or 20.4%, primarily due to a decrease in average headcount for the three months ended June 30, 2024. Finance of America had 495 employees at the end of the second quarter compared to 683 for the 2023 period.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- The reverse mortgage lender's total expenses decreased $25.0 million, or 22.7%, primarily due to cost-cutting measures associated with the
- Total salaries, benefits, and related expenses decreased $5.4 million, or 20.4%, primarily due to a decrease in average headcount for the three months ended June 30, 2024. Finance of America had 495 employees at the end of the second quarter compared to 683 for the 2023 period.
Rithm Capital
Profits narrowed, but Rithm Capital ended up in the black for a second straight quarter , as it focused on mortgage-servicing rights and consolidation of recent acquisitions. Within its mortgage originations business, Newrez funded $14.6 billion worth of loans in the second quarter.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Computershare's operations represent $33.6 million of revenue and $19.3 million of net income for Rithm as of the June 30. Rithm Capital recognized $14.9 million of Computershareacquisition-related costs that were expensed for the six months ended June 30, 2024, the company wrote in its 10-Q SEC filing.
- As of June 30, 2024, PHH and Valon Mortgage, Inc. subservice 7.4% and 4.3% of the company's MSRs, respectively. The remaining 88.3% of owned MSRs are serviced by Newrez. The mentioned companies "perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee," Rithm wrote in its SEC filing.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Computershare's operations represent $33.6 million of revenue and $19.3 million of net income for Rithm as of the June 30. Rithm Capital recognized $14.9 million of Computershare
- As of June 30, 2024, PHH and Valon Mortgage, Inc. subservice 7.4% and 4.3% of the company's MSRs, respectively. The remaining 88.3% of owned MSRs are serviced by Newrez. The mentioned companies "perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee," Rithm wrote in its SEC filing.
Better
Better, reporting earnings for just the fourth time as a public company, had a $42 million net loss in the second quarter, an improvement over the $51 million deficit it posted to begin the year. The digital lender's revenue grew 41% quarter-over-quarter to $31 million.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Better repurchased $1 million (5 loans) and $9 million (20 loans) in unpaid principal balance of loans during the three months ended June 30, 2024 and 2023, respectively, related to its loan repurchase obligations. The lender repurchased $3.0 million (11 loans) and $14.9 million (35 loans) in unpaid principal balance of loans during the six months ended June 30, 2024 and 2023, respectively, documents show.
- Better's push into the home equity product space seems to be paying off. The company's HELOC loan volume increased to $90 million in the three months ended June 30 up from $9 million in the three months ended June 30, 2023. HELOC loan volume increased to $142 million in the six months ended June 30 from $11 million in the six months ended June 30, 2023.
Here are additional takeaways from the company's 10-Q filing with the SEC:
- Better repurchased $1 million (5 loans) and $9 million (20 loans) in unpaid principal balance of loans during the three months ended June 30, 2024 and 2023, respectively, related to its loan repurchase obligations. The lender repurchased $3.0 million (11 loans) and $14.9 million (35 loans) in unpaid principal balance of loans during the six months ended June 30, 2024 and 2023, respectively, documents show.
- Better's push into the home equity product space seems to be paying off. The company's HELOC loan volume increased to $90 million in the three months ended June 30 up from $9 million in the three months ended June 30, 2023. HELOC loan volume increased to $142 million in the six months ended June 30 from $11 million in the six months ended June 30, 2023.
