Rocket reports steep decline in profit in 2Q

Rocket Cos. was barely profitable in the second quarter, earning a mere $60 million of net income, versus $1.03 billion in the first quarter and $1.04 billion for the second quarter of 2021. In its earnings call, management focused on how its various parts, including its new programs in solar and home equity , as well its acquisition of Truebill — now called Rocket Money — can help develop business in other parts of its organization. On the mortgage side it announced a new partnership with Santander Bank to originate loans for its customers. Plus it noted its second quarter cost-cutting efforts were more successful than planned.

Read more: Rocket reports steep decline in profit in 2Q

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Finance of America plans more cuts after big losses in Q2

Finance of America's losses deepened in the second quarter as spread widening intensified, impacting even loan segments that were previously insulated from it, and outpacing gains in areas like servicing advisory services. The company reported a loss of $168 million. It took net losses of $64 million in the first quarter and $15 million a year ago. The company's $0.70 per diluted share in the second quarter was in line with Wall Street Journal estimates.?

Nonbank mortgage jobs tank for second month

Nonbank mortgage payrolls declined for the second consecutive month, but with mass firings increasing towards the end of June, the most recent statistics fail to represent the full extent of recent workforce reductions in the field. Combined estimates for mortgage banker and mortgage broker payrolls in June totalled 410,000, compared with a slightly downward revised 417,900 in May and 425,200 in April, according to the Bureau of Labor Statistics. The mortgage industry employed a revised 423,000 people in June 2021.

Freedom Mortgage sells RoundPoint to Two Harbors after 2 years

Matrix Financial Services agreed to purchase RoundPoint Mortgage Servicing Corp. at a $10.5 million premium, only two years after the servicer was acquired by Freedom Mortgage. Matrix has already agreed to use RoundPoint as its subservicer before the closing date, which is expected in 2023. Two Harbors will gain around $20 million in incremental annual pretax earnings by bringing servicing in-house with RoundPoint.?

Fed leaders pledge tough fight to keep inflation credibility

The Fed presidents in St. Louis, Richmond and Minneapolis have favored a strategy of “front-loading” big interest-rate hikes, predicting the year will end at 3.75% to 4%. Still, leaders are cautious in not triggering mass unemployment which could lead to a recession. Moreover, inflation, which is at a 40-year high, has yet to slow, pushing the Federal Open Market Committee to continue to take aggressive actions.?

ICE Mortgage Technology loses $6M in 2Q22

Intercontinental Exchange Mortgage Technology’s second quarter operating income stood at $95 million compared to $53 million in the first quarter. Its revenue performance was down just $10 million at $297 million. Recurring revenues increased 18% year-over-year and drove outperformance even in an industry that has suffered from consistent decline. ICE Mortgage Tech still expects to close its acquisition of Black Knight in the first half of 2023.?

Steven Schnall, CEO of Quontic Bank, dies in an accident

Schnall died in a motorcycle accident as he returned from a biking trip from Canada. He bought Golden First Bank, recapitalized and rebranded it as Quontic Bank in 2009, which he turned into a primarily digital bank. In 2020, it was the first U.S. bank to have a debit card with bitcoin rewards and in 2022, it offered a payment ring and was an early experimenter within the metaverse. Outside banking, Schall founded companies such as New York Mortgage Trust, Fit Athletic Holdings, Realmore Capital and Restaurant.com.?

Ocwen's strategy shift notches modest win in Q2 earnings

The company earned $10 million during its second quarter, down from $58 million in Q1 but still better from a $10 million net loss a year ago. Profits are attributed to cost cuts, appreciation in mortgage servicing rights and a shaft to higher-margin correspondent products. Its most significant challenges included mark-to-market accounting adjustments, a reduction in production volumes and the sale of delinquent loans bought out of Fannie Mae securities. As a result, executives said that production would take a back seat to servicing.?

Equifax may face class action after credit score glitch

The lawsuit was filed in federal court in Atlanta, alleging it violated the Fair Credit Reporting Act after it provided inaccurate credit scores for millions of U.S. consumers. Equifax said the “technology coding issue” was fixed on April 6. But the suit alleges a woman in Florida took a less-favorable auto loan in April because of an inaccurate credit score.

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