Home Point, Ann Arbor Mortgage Lender, Reports $ 607 Million in 2020 Profit
March 11 – Home Point Capital Inc. posted a profit of $ 607 million in 2020 on Thursday after losing money the previous year as low interest rates boosted refinancing and buying activity.
The Ann Arbor-based mortgage lender shared its financial results for the first time since its January IPO on the Nasdaq. The 2015-founded company’s record $ 62 billion volume puts it behind mortgage giants Crosstown Rocket Companies Inc. and United Wholesale Mortgage Holdings Corp., but Home Point is growing faster – rising 178.5% d ‘year after year in 2020.
That’s more than the top 35 lenders, according to the industry publication Inside Mortgage Finance, and places Home Point 15th overall in total origins volume and # 3 in the wholesale channel, its preferred area for retail. sale of mortgages through independent brokers. No.1 overall, Rocket grew 122.5% last year, while No.4 UWM increased its volume by 69.4%.
“Our results for the fourth quarter of 2020 capped a year of transformation for Home Point Capital, driven by record performance on our creative platform across all dimensions,” CEO Willie Newman said in a statement. “Our growth was primarily driven by our wholesale channel, where we doubled our market share compared to 2019. This performance highlights the impact of our differentiated business model.”
Home Point earned $ 4.45 a share last year. His net income was $ 1.377 billion, nearly six times what he raised in 2019. Spending, however, rose 144% to $ 588.6 million.
Home Point’s origins segment contribution margin was $ 1.479 billion, five times that of 2019. Refinancing represented 69.1% of Home Point’s 2020 mix, compared to 49.4% in 2019. The 30.9 remaining% came from purchases. Home Point retains service for most of its loans; this segment lost $ 65.8 million.
To help grow its wholesale business, the lender last year added 2,287 partner brokers, which now total 5,372. The leading wholesale lender, UWM, works with 12,000 brokers and No. 2 Rocket has 10,000 partners. .
Home Point’s workforce has also grown to 3,500 people across the country. This includes 517 people in Michigan.
The company closed the last three months of the year with a net profit of $ 184.5 million, a 10-fold increase, with a profit margin on the sale multiplied by 1 1/2. The origins volume was $ 23.956 billion, almost twice as much as the fourth quarter of 2019 and more than the value of all origins made last year.
The company ended the year with $ 281 million in free cash, including $ 165 million in cash and cash equivalents, an increase of 113%. Although it entered the financial markets this year, Home Point hasn’t actually seen an influx of money into its coffers from the IPO. The offer came from private investors Home Point, but it gives the company the opportunity to solicit public investors for funds in the future.
Crosstown rival Rocket, which includes its Quicken Loans LLC lending business, title insurer Amrock LLC and more, made $ 9.4 billion in profit last year, closing $ 323 billion in Mortgages. UWM made $ 3.38 billion with a volume of $ 182.5 billion.