Land grab for Quicken Loans in IPO filing that could raise up to $3B

On Tuesday, mortgage lender Quicken Loans filed paperwork to go public under parent company Rocket Companies (RKT). In its filing, the company listed the size of its offering as $100 million, a placeholder amount that will likely change.

Why should we care?
One industry analysis said the deal could raise up to $3B. Going public, according to RKT, would help it expand in a “highly fragmented” market. RKT is the largest retail mortgage lender in the U.S., and encompasses brands Amrock, Rocket Homes, Rocket Loans, Rock Connections and Rocket Auto. It’s provided more than $1 trillion in home loans since its founding. The company, which posted an annual profit for the past three years, faces some challenges, including a dependence on market conditions; changing monetary policies and interest rate fluctuations; and pandemic-affected homeowners who may miss payments. In May, more than 4 million Americans couldn’t pay their mortgage bills, the highest level since 2011.