Mortgage IPO Boom Faces Market Turbulence

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Nonbank lenders have had a strong year, but October’s market shakeout could stall the fundraising train

Mortgage lenders hoping to take advantage of a surprisingly prosperous year are facing a big challenge: rising market turbulence.

The August market debut of Quicken Loans parent Rocket Cos. kicked off a flurry of planned public listings for mortgage companies, marking a major reversal for a group that just two years ago was under significant pressure. At least six of the 30 largest U.S. mortgage lenders have gone public this year or are seeking to, according to industry-research group Inside Mortgage Finance.

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