Wells Fargo’s net earnings dropped in Q4 2022, pushed down by a settlement and the pressures of a shrinking economy. The bank announced that its net income fell to $2.86 billion, or 67 cents a share. This is half of its profits from the same time last year, which came in at $5.75 billion, $1.38 per share. Leaders at Wells Fargo noted that the decline was driven by the fall-off in mortgage demand. Its home lending was down 57% from Q4 2021. The bank announced this week that it is narrowing its home lending business, exiting the correspondent lending channel and shrinking its servicing portfolio. This move will force a round of layoffs, but it is unclear how many jobs…
Mortgage and real estate companies are releasing their earnings reports for Q2 2022, providing information on the state of the housing market and where it might be headed. NPR’s David Gura noted on Morning Edition that earnings reports “can shape our understanding of what the economy may look like in the future.” “So while earnings reports and calls executives do with analysts may seem dry, not relevant to most people, they are worth paying attention to because companies have access to tons of data about themselves, their customers, talking about customer spending patterns, how they’re feeling,” he said. Some major players in the mortgage industry released their reports this week. Freddie Mac said its earnings fell by 33% YOY, netting…
Rocket Companies on Tuesday announced third-quarter financial results that included closed loan origination volume of $89 billion, a 122 percent increase over the third quarter of 2019. Rocket Companies also reported: Increased net revenue by 186 percent and adjusted revenue by 163 percent, with as total expenses increasing by 46 percent. In addition to $89 billion in loan origination volume, the company saw a net rate lock volume of $94.7 billion – a 101 percent increase over 2019.Increased other income by 140 percent year-over-year, which included Amrock’s strong growth from title insurance services, property valuation, and settlement services as a result of the increase in origination volume. “In the midst of the pandemic, we were able to help an unprecedented number…
RE/MAX reported “very encouraging” financial results for the third quarter for its real estate and mortgage brokerage service arms. “The continued execution of our strategy, coupled with the U.S. housing market’s remarkable run, drove our very encouraging results for the third quarter,” stated Adam Contos, RE/MAX Holdings Chief Executive Officer. RE/MAX reported the following results for RE/MAX real estate brokerage and Motto Mortgage brokerage: Total revenue of $71.1 million, with revenue excluding marketing funds increased 0.5% percent to $53.8 million.Net income attributable to RE/MAX Holdings, Inc. of $3.6 million and earnings per diluted share (GAAP EPS) of $0.19.Adjusted EBITDA of $30.3 million, Adjusted EBITDA margin of 42.7% and Adjusted earnings per diluted share (Adjusted EPS) of $0.64.Total agent count increased 5.1 percent to 134,769 agents, while decreasing 0.3 percent in…
Zillow announced third quarter financial results, as the online real estate company posted strong revenue amid the coronavirus pandemic. “Zillow’s strong third quarter results reflect impressive execution during a time of challenge and opportunity,” Zillow Group co-founder and CEO Rich Barton said. “Many of us are re-evaluating where we live and how we live, which has kicked off a Great Reshuffling, and we need safe, digital ways to get to a better place.” Total consolidated revenue of $657 million and revenue for all three segments exceeded the high end of the company’s revenue outlook for the third quarter.Segment income (loss) before income taxes was $140 million, $(76) million and $11 million for the IMT, Homes, and Mortgages segments, respectively, and…
