Rocket Cos. Inc., the U.S.’s biggest mortgage lender, said profit fell in the third quarter from a year earlier as revenue declined and expenses increased.
The Detroit-based company said Thursday its net income fell to $1.4 billion from $3 billion in the same period a year earlier. Earnings per share was unchanged from a year earlier at 54 cents and adjusted earnings per share declined to 57 cents from $1.22 in the third quarter of 2021. Rocket generated net revenue of $3.1 billion, down from $4.6 billion a year ago.
Total expenses increased to $1.7 billion in the quarter from $1.6 billion a year earlier.
The company said it had closed loan volume of $88 billion in the third quarter, above the $82 billion to $87 billion range the company forecast in August. Net rate lock volume reached $86.7 billion, within the $83 billion to $90 billion range expected by the company and it had a gain on sale margin of 3.05%, above the 2.7% to 3% forecast from August.
Rocket
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said it expects to generate a closed loan volume of between $75 billion and $80 billion in the fourth quarter, with a net rate lock volume of between $71 billion and $78 billion and a gain on sale margin between 2.65% to 2.95%.
Shares declined more than 2% in after-hours trading.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
This post was originally published on Market Watch
