Home Point stock dips 17.7% after it reports $149M 1st quarter profit
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Home Point Capital Inc. shares tumbled 17.7% in afternoon trading after the Ann Arbor-based mortgage lender missed Wall Street expectations despite a booming housing market.
The company reported revenue of $422 million in the first three months of 2021, more than five times that received in the prior-year quarter. But it missed analyst expectations by nearly $42 million, according to financial news website Seeking Alpha. The $1.07 earnings per share, however, surpassed expectation by 37 cents.
Home Point reported a profit of $149 million in the first quarter after losing money during the same period in 2020. It originated a record $29.4 billion in loan volume, more than two-and-a-half times the amount it originated during the first quarter last year, as historically low interest rates spurred refinancing activity and home purchases.
A Florida mortgage broker has filed a complaint in federal court seeking a class-action lawsuit against Pontiac-based United Wholesale Mortgage Holdings Corp. and CEO Mat Ishbia over its March ultimatum that said the lender won t work with brokers who continue to do business with crosstown rival Rocket Companies Inc. and Wisconsin-based Fairway Independent Mortgage Corp.
The complaint filed Friday by The Okavage Group LLC alleges millions of dollars in damages to the industry resulting from the March 15 deadline. UWM said brokers working with it and Rocket or Fairway had to sign an addendum agreeing to no longer originate mortgages through them or else pay a fine of $50,000 or more.
Home Point Capital Inc. on Thursday said it has seen an increase in inquiries from brokers about working with the Ann Arbor-based mortgage lender since crosstown rival United Wholesale Mortage Holdings Corp. last week announced it would no longer work with brokers continuing doing business with Rocket Companies Inc.
The Monday ultimatum set by UWM, the country s largest wholesale lender, could be a boon to competitors like Home Point as brokers look to replace Pontiac-based UWM or Detroit-based Rocket Mortgage as a partner. Already the fastest-growing lender of the country s largest 35 in 2020, Home Point doubled its market share in the wholesale channel last year and plans to keep up the growth in 2021.
Ann Arbor mortgage lender Home Point records $607M profit in 2020 yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.