Capital Markets
MAKING HAY WHILE THE SUN IS SHINING
Many lenders are seizing the opportunity to go public. What does this mean for the market?
An Interview with Rick Sharga, Executive Vice President at RealtyTrac By Brian Honea
The last few months have seen a number of the country’s largest privately-held lenders take advantage of near record origination volumes and near record low interest rates by going public. Rocket Companies, the parent organization of THE biggest lender, Quicken Loans, began the trend in early August when it raised about $1.8 billion in its IPO; and, it didn’t take long for others to follow suit. In late September, the largest wholesale lender in the U.S., United Wholesale Mortgage, announced its intention to go public via a merger with Gores Holdings IV with a transaction value of $16.1 billion, making it the largest special purpose acquisition company transaction to date. Also in September, it was reported that LoanDepot is mulling an IPO with a valuation that could be worth up to $15 billion, after scrapping one at the last minute in 2015. Texas-based Caliber Home Loans filed for its IPO in early October that could be worth up to $2 billion. Two smaller Texas-based lenders, Guild Mortgage and AmeriHome Mortgage, have also jumped into the IPO ring in the last month or so. The MORTGAGE BANKER Magazine
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November 2020
