The nation’s top mortgage lender had a tough second quarter. While brokerages managed to pull out decently profitable Q2s, Rocket Mortgage is reporting revenue and profit decline.
According to its latest earnings statement, Rocket Mortgage saw its quarterly revenue fall $1.271 billion between April-June, falling from $2.671 billion to $1.4 billion. Rocket Companies, the parent of Rocket Mortgage, reported a $60 million profit in the second quarter, down from $1 billion just the previous quarter.
Rocket originated $34.5 billion in mortgages in the second quarter, at the low end of the company’s guidance. That’s also down from $53.8 billion in volume in Q1.
“During this time of change in the industry, we are focused on operating our business with discipline. We reduced expenses by approximately $300 million during the second quarter and will continue to execute a prudent approach to cost management,” said Julie Booth, CFO and Treasurer of Rocket Companies. “We are also investing our capital into the Rocket engagement and services platforms to expand our client base, drive higher conversion, and lower our client acquisition cost, setting the foundation for our next stage of growth. We will continue to deploy our capital in a strategic and disciplined manner to generate long term shareholder value.”
Executives expect volume is going to continue to fall in the next quarter, with the company forecasting closed loan volume between $23 billion-$28 billion.