Home News Rocket Mortgage Was a Refinancing Giant. Now What?

Rocket Mortgage Was a Refinancing Giant. Now What?

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(Newser)
– In the second half of 2020, 19 million American homeowners could have saved money by refinancing their mortgages. There are currently just 133,000, according to Black Knight, a mortgage data and analytics company. That’s not good news for America’s largest mortgage lender. For most of last year, 1 in 14 of his mortgages was with Rocket Mortgage, the majority of which were refinances, making up 82% of his total loan value. The tables have turned, and Rocket lending is reported to be down more than 50% this year. wall street journalin the journal’s How the company and its peers adjust to this new reality will be an early test of whether U.S. companies can withstand the economic slowdown wrought by the Federal Reserve.

Rocket is switching gears to offer low-interest mortgages for the first year of new home purchases, making mortgages more affordable by allowing homeowners to turn their equity into cash. It responded by facilitating cash-out refinancing, which meant exchanging for a larger mortgage. But giving up his 3% interest rate mortgage and having someone give up his 6% interest rate mortgage is like “pushing a rock up a hill,” Rocket recently said. said the mortgage banker who left. journalAt the end of September, mortgage refinancing applications were down 84% year-on-year, the lowest level in 22 years. CNBCEarnings at parent company Rocket Cos. have fallen dramatically and are expected to post their first loss since going public in 2020 after reporting third-quarter results on Thursday.

Rocket isn’t cutting bank staff like other mortgage companies. But it encourages employees to maintain sales targets and hopes those who don’t will embrace the acquisition. It was shown that one strong of journalIn the spring, Rocket asked employees to work weekends if they weren’t on pace to hit at least 70% of their goals. Some employees say they took time off due to work stress. Thousands of employee complaints are popping up on social media. The former banker, who left Rocket in July, said: journal She was working six days a week, and her once-abundant leads were slowly slowing down. mortgage lender Talk. )

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