Rocket’s origination volume jumps 28% in Q3

Detroit-based Rocket Companies, the parent of Rocket Mortgage, saw its strategy of investing in technology and expanding its servicing portfolio start to pay off in the third quarter of 2024. It originated $28.5 billion in loans during the period — up 28% year over year.Short-lived relief in mortgage rates led to a double-digit increase in mortgage production and gains in market share during the period, executives said. But the company delivered a GAAP net loss of $481 million from July through September, a figure that was driven by a loss of $878.3 million in the fair value of its mortgage servicing rights (MSRs).“Over the past few months, the market has thrown our industry almost every curve ball imaginable,” Varun Krishna, CEO and director of Rocket Companies, told analysts during an earnings call on Tuesday. “With inflation easing, the Federal Reserve cut rates for the first time in four years. But in an interesting twist, while the Fed lowered rates, mortgage rates did not follow suit. Instead, both the 10-year Treasury yield and the 30-year fixed mortgage rate actually increased.“In my experience, it’s always important to take the long view and put things in perspective. Despite the housing market being challenging, we are seeing signs of rejuvenation. The 30-year fixed mortgage rate has declined from nearly 8% a year ago. This is helping improve purchase affordability and opening up refinancing opportunities to lower monthly payments, plus housing inventory has increased from 3.4 months to 4.3 months.” Rocket’s GAAP net loss of $481 million from July to September was a reversal from its $178 million profit in the second quarteer of 2024, per filings with the Securities and Exchange Commission (SEC). Adjusted earnings, which excludes non-cash expenses and one-time charges, reached $166 million in Q3 2024, lower than the $255 million figure in Q2. The GAAP net loss also stemmed from a decline in total revenue, which reached $647 million in Q3, down from $1.3 billion in Q2. Meanwhile, expenses rose to $1.14 billion, up from $1.1 billion in the second quarter.Operationally, a two-week dip in mortgage rates created a brief window for refinancing in Q3 2024, pushing Rocket’s total origination volume to $28.5 billion from July to September — up from $24.6 billion in the previous quarter and $22.1 billion in Q3 2023. Its direct-to-consumer channel remained the primary driver, generating $14 billion in volume during the period, compared to $12.4 billion from its third-party originator channel.Gain-on-sale margins for Q3 2024 were 278 basis points, a decrease from 299 bps in the previous quarter but nearly unchanged from 276 bps in Q3 2023. This was driven by a margin of 410 bps in the direct-to-consumer channel and 147 bps in the third-party origination (TPO) channel. Executives anticipate margin expansion in the fourth quarter, a period when competitors typically adjust pricing strategies around the holidays. According to Rocket leadership, current margins are approaching the historically healthy levels seen before the pandemic.Rocket’s playbookWhile the company doesn’t provide a detailed breakdown of purchase versus refinance business, executives reported market share growth in both areas during the quarter. Refinancing opportunities are largely coming from Rocket’s servicing portfolio, which reached an unpaid principal balance (UPB) of $546.1 billion at the end of Q3. With 2.6 million loans, Rocket’s servicing operations generated approximately $1.5 billion in annual fee income.Rocket, like its peers, has been actively acquiring servicing assets. In Q3 alone, it invested $311 million to add $22.4 billion in UPB, bringing its total UPB acquisitions from January to October to $70 billion. Executives anticipate that portfolio acquisitions will remain a key capital deployment strategy alongside opportunities from subservicing agreements, such as Rocket’s partnership with real estate investment trust Annaly Capital Management. The company’s total liquidity was $8.3 billion as of Sept. 30, including $1.2 billion of cash on the balance sheet. Rocket reported an 85% recapture rate on its servicing portfolio. The company is leveraging technology to navigate mortgage market cycles more effectively. Chief financial officer Brian Brown told analysts that the company can “support $150 billion in origination volume without adding a single dollar in fixed costs.”Additionally, Krishna said Rocket Logic, the company’s proprietary loan origination system, now saves more than 800,000 team member hours per year — a 14% increase in just two months — that result in more than $30 million in annual savings.Looking ahead, Rocket projects adjusted revenue between $1.05 billion and $1.2 billion in Q4 2024, a seasonally slower period due to the holidays. Executives said higher mortgage rates have also dampened application volumes. Rocket shares fell 11.3% in the after market, following the earnings call, to $13.78.

Leonardo DiCaprio Hosts Star-Studded 50th Birthday Party Inside Walmart Heiress’ Lavish L.A. Estate (and Sparks Fury From Neighbors)

Getty Images/Google MapsLeonardo DiCaprio marked his milestone 50th birthday in true Hollywood fashion, by throwing a glamorous (and by all accounts) raucous party that was reportedly held at the ultraexclusive estate of a Walmart heiress, whose home is nestled in one of the most sought-after areas in Los Angeles.The party on Saturday was attended by dozens of A-list stars, from Paris Hilton and Katy Perry to Brad Pitt and Al Pacino, with sources claiming that the party took place in two homes that make up a sprawling compound owned by heiress Sybil Robson Orr and her husband, Matthew Orr.According to Page Six, the evening began with a dinner “catered by Nobu,” which Us Weekly claims was attended by the actor’s innermost circle. Then, the party moved to the second property on the estate, where it was opened to a wider group of celebrity guests, who are said to have danced until the early hours of the morning.However, while DiCaprio’s guests were having a ball, residents in the neighborhood where the party took place were up in arms over the disruption to their evening, due to the swarms of photographers, security, and large SUVs that ferried the stars to and from the venue.A video obtained by Fox News showed furious neighbors arguing with the valet and other staff at the event, which Us Weekly reported was held at the Orr residence.The estate, which is near a Hollywood Hills compound owned by the movie star, sits on a primo promontory called The Crown. The incredibly exclusive enclave holds just three properties, two of which are understood to be owned by the Orrs.Leonardo DiCaprio celebrated his 50th birthday by throwing a star-studded bash at a private Los Angeles estate.Jeff Kravitz/FilmMagicThe party was attended by a huge number of celebrities, including Cara Delevingne, Brad Pitt, and Katy Perry.Instagram; Getty ImagesParty padsSybil Robson Orr is the niece of Walmart founder Sam Walton, and herself a founder of Robson Orr Entertainment. She and her husband have long been reported to own two of the three homes on The Crown, which offers “unimpeded panoramic canyon, city and ocean views.”According to multiple outlets, the couple picked up a six-bedroom, 9,691-square-foot Mediterranean mansion on an acre for $19.5 million in 2010 from Russian heiress Daria Zhukova.Then, in 2012, they were reported to have snapped up the adjoining five-bedroom, 7,043-square-foot property on 0.67 acres for $17 million, purchasing the home—which was once owned by Lionel Richie—from real estate investor Grant Cardone.At the time, Curbed LA reported that the couple, after plunking down a total of $36.5 million, planned to raze the two homes, “take out the swimming pool and tennis court on the smaller property, and reroute the driveway,” and build a new compound in their place.Property records indicate that both properties in question were purchased through a trust.Star-studded eventAs for the extravagant affair on Saturday night, the festivities reportedly raged on until 4 a.m. the next day, with a dinner for DiCaprio’s parents and close-knit crew at one house, where waiters served a spread from upscale sushi restaurant Nobu.Then, the party moved next door, where multiple celebrities are understood to have joined the festivities after attending the annual Baby2Baby Gala in L.A.Not even outside ire could spoil the evening for the birthday boy, however.“Leo was so sweet and happy all night,” a partygoer told Us Weekly. “He was smiling the whole time.”Security was understood to have been of the utmost importance to the famously private actor, who reportedly had every guest cover their phone camera with a sticker to ensure that no unauthorized images or video leaked from inside, according to Page Six.The party was reportedly held at a sprawling Los Angeles estate owned by Walmart heiress Sybil Robson Orr and her husband, Matthew Orr.Google MapsThe Orrs are understood to have paid more than $3o million to buy up two properties inside an exclusive L.A. enclave known as The Crown.Stefanie Keenan/Getty Images for LACMABirthday backlashThe “Wolf of Wall Street” star’s event caused havoc that spilled outside onto the Bird Streets, leaving residents furious. According to Fox News, one local was livid at the alleged chaos caused by vehicles arriving at and leaving the event.“Somebody just hit my car, ran over my front lawn,” he can be heard saying in footage aired by the network.Another griped, “People are driving over my private property, my neighbor’s private property. If there are damages here, who’s responsible?”The Fox News story noted that neighbors had been alerted to the upcoming festivities, but added that the Los Angeles Police Department confirmed two complaints about a loud party in the vicinity had been filed.DiCaprio’s real estateAlthough DiCaprio chose to hold his party at another person’s home, he would have had ample room to host his A-list guests in one of his own properties.The Oscar winner has bought and sold some serious trophy properties over the decades. He picked up his Hollywood Hills compound—originally two side-by-side properties, one of which the actor purchased from pop star Madonna—in the 1990s for $2.5 million.This property has been fully renovated by the star, who added a basketball court. He’s said to have rented it out to various actor friends, including, apparently, Tobey Maguire.He’s since amassed four properties within the compound, which features multiple pools and spans 5 acres.In addition, in 2021, the actor picked up a Los Feliz property owned by “Modern Family” star Jesse Tyler Ferguson for $7.1 million.He’s also owned two units in a waterfront New York City high-rise in Battery Park City, an island near Belize, a Malibu mansion, and an investment property in Palm Springs.

Bill Pulte to be considered for HUD secretary, report claims

Bill Pulte, the philanthropist and CEO of Pulte Capital — and who shares a name with his grandfather, the founder of Atlanta-based homebuilder PulteGroup — is reportedly under consideration for the post of U.S. Department of Housing and Urban Development (HUD) secretary in the new Trump administration, according to a report from the New York Post.Pulte is a regular and frequent poster on the social media platform X, having used the platform as the source of philanthropic giving to other platform users. He is also a vocal supporter of President-elect Donald Trump who lambasted the housing proposals of Vice President Kamala Harris during the 2024 election campaign.The Post reported that unnamed sources close to the situation claim that key transition figures are “loudly” advocating on his behalf. Additionally, they claim that Pulte has already had some conversations with members of the Trump transition team.The report also noted that Ben Carson, the HUD secretary during Trump’s first term in office, is not interested in returning to the role. Instead, he is reportedly jockeying to become secretary of the U.S. Department of Health and Human Services (HHS).“Bill comes from a prominent family and is probably best qualified, probably overqualified,” the source said, according to the Post.Pulte has also posted photos of himself on X in close proximity to Trump and high-profile figures of the 2024 campaign — including former Rep. Tulsi Gabbard, Vice President-elect JD Vance and Trump himself.Pulte said Tuesday in a post on X that Trump “is the only builder who has ever been elected president,” adding that he can take action on the federal lands owned by the government.Following prior presidential elections that have resulted in a new occupant in the White House, the nominee for HUD secretary is typically a post that is announced within the first two weeks of December.In 2008, following the victory of Barack Obama, Shaun Donovan was named the nominee-designate for HUD secretary on Dec. 13. In 2016, Carson was announced as the selection for the role on Dec. 5, roughly a month after Trump’s first election win. In 2020, Marcia Fudge was announced as the nominee on Dec. 8 for the Biden administration.Pulte is no longer involved with PulteGroup. He sued leaders at the company in 2022 for allegedly harassing him on X, then known as Twitter.

Veterans have down payment assistance options of up to $117K

As 2025 approaches, state-funded down payment assistance (DPA) programs are helping veterans, service members and surviving spouses achieve their dreams of homeownership.This comes from a new survey by Down Payment Resource — a nationwide database designed to connect prospective homebuyers to financial assistance opportunities. The study analyzed DPA programs from more than 1,300 housing finance agencies, municipalities, nonprofits and other organizations. A total of 29 down payment assistance programs were added in the U.S. in third-quarter 2024. Down Payment Resource highlighted 49 of the 2,400-plus programs that offer up to $117,000 specifically for veterans. That represents a slight decrease from the 61 programs that offered up to $120,000 per borrower last year.In 2024, second-lien mortgage programs (20) stand out with the highest number of veteran-tailored DPA programs. Grant programs (15) and first-lien mortgage programs (12) came in next.The 15 grant programs offer forgivable assistance, provided that a homeowner maintains their status as the primary occupant and owns no additional properties. Last year, 24 programs offered the same benefit. The report also noted a slight increase in the minimum down payment assistance amount for veteran-tailored programs, which grew from $2,000 to $2,500. The maximum assistance amount decreased from $120,000 to $117,000. Rob Chrane, founder and CEO of Down Payment Resource, said that veterans and their families should be more aware of DPA options heading into 2025.“Owning a home is foundational to long-term financial stability, and our goal is to ensure Veterans and their families are aware of the assistance available to them,” Chrane said in a statement. “As we celebrate Veterans Day and Military Family Appreciation Month, we’d like to thank our Veterans, service members and their families. It’s our hope that these programs can unlock the doors to homeownership and all the benefits it brings for them in the coming year.”Data shows that more veterans have been gearing up for homeownership in 2024. According to a National Association of Realtors (NAR) report in July, veteran homeownership has steadily increased since 2008, with veterans outpacing civilian buyers in some markets. And another survey by Veterans United Home Loans found that 74% of the military population plans to purchase a home in 2025, compared to 69% of surveyed civilians. Veterans or family members interested in purchasing multiunit properties may also receive assistance. The report highlighted that 24 programs support the purchase of one- to four-unit homes. With mortgage rates expected to sink further in 2025, program demand could continue to grow.