Quicken's parent reports huge boost in second-quarter earnings
Rocket Cos., the new holding company for Quicken Loans after its initial public offering is completed, earned between $3.35 billion and $3.55 billion in the second quarter, according to its updated prospectus.
"Our financial results for the three months and six months ended June 30, 2020 are not yet complete and will not be available until after the completion of this offering. Accordingly, we are presenting certain preliminary estimated unaudited financial results," the prospectus said.
The second-quarter profits are a turnaround from a $54 million loss for the same period one year ago.
On a quarter-to-quarter basis, the midpoint of its net income range was $3.35 billion higher than the $97.7 million reported as Rocket's first-quarter earnings.
The discussion section of the prospectus was not updated to include commentary about the new numbers.
During the quarter, Quicken originated $72.3 billion of mortgages, compared with $51.7 billion in the first quarter and just under $32 billion one year ago.
Among the large bank lenders, Wells Fargo produced $59 billion in the second quarter and Chase did $24.2 billion.
Bank of America originated a total of $23.1 billion between its consumer banking and the global wealth and investment management units. In the first quarter, it logged $18.9 billion, while in the second quarter of 2019 BofA originated $18.2 billion.
Quicken's total revenue for the quarter ranged between $4.93 billion and $5.13 billion; it did not break out gain on sale figures. For the same period last year, total revenue was $938 million.
Its net revenue for the second quarter was reduced by a fair value adjustment to its servicing rights of between $265 million and $285 million.
For the second quarter last year, revenue was reduced by a $391 million fair value adjustment.