Mortgage giant Quicken Loans is heading to Wall Street in what could be the largest initial public offering of the year.
The Michigan-based non-bank lender has confidentially filed with the U.S. Securities and Exchange Commission, the Financial Times reported.
Read more
Residential
South Florida
Fast money: Lenders race to close on home mortgages
Residential
New York
Court brings the hammer down on Quicken in appraisal case
New York
New programs ease US homebuyers' path to mortgages
The listing could come as early next month and value Quicken Loans in the tens of billions of dollars, according to the publication.
Quicken Loans, founded by billionaire Dan Gilbert in 1985, was among the non-traditional lenders that surged in the wake of the financial crisis to fill a void in the mortgage market left by traditional banks that were limited by new regulations.
The company was second only to Wells Fargo last year in mortgage originations in the United States, initiating $80 billion in new loans.
Quicken Loans could be looking to capitalize on a heated market for new public listings: Last week was the busiest week in a year for IPOs with $3 billion in proceeds, led by Warner Music’s $1.9 billion listing, according to the FT.
The mortgage market, in the meantime, is being spurred on by low rates in the wake of the Federal Reserve’s cutting rate targets to zero to help the economy. Also, government interventions to help homeowners by offering forbearance could extend the term on loans.
Non-bank mortgage lenders, however, have been hurt by capital calls and falling prices in mortgage bond markets. [FT] — Rich Bockmann