Quicken Loans, the largest mortgage lender in America, is planning an initial public offering, according to people familiar with the matter.
The company, founded and owned by Detroit-billionaire Dan Gilbert, has filed its IPO prospectus confidentially, the people said, and may flip it to be public as soon as next month.
The company is personified by Gilbert, who started the predecessor of the company 35 years ago. He’s the chairman and majority owner of the NBA’s Cleveland Cavaliers and credited with revitalizing downtown Detroit. Gilbert and his wife joined Warren Buffett, and Bill and Melinda Gates’ “Giving Pledge,” to donate a majority of their wealth to charity. Forbes pegged Gilbert’s wealth at $7.8 billion.
Mortgage rates set a new record low on Thursday thanks to falling interest rates, with the average rate on a 30-year fixed mortgage reaching 2.97 percent, according to Mortgage News Daily. Low rates have encouraged homeowners to refinance.
Quicken Loans CEO Jay Farner said on CNBC in mid-April that March was the “biggest closing month in our company’s history — nearly $21 billion in mortgages closed.” He said on CNBC that the company was estimating nearly $75 billion in mortgage applications in the second quarter, compared with almost $53 billion in the first quarter.
Quicken Loans, Morgan Stanley, Goldman Sachs, Credit Suisse and JPMorgan declined to comment on the company’s plans for an IPO.
Volatility is the enemy of IPOs, however, and that spiked on Thursday as the market sold off.
In late May of 2019, Gilbert suffered an ischemic stroke on the right side of his brain, according to an interview he gave to Crain’s Detroit Business in February. He is working on improving his strength and motor skills that were impaired by the stroke, the article said.
Source-HW