Record-low interest rates have provided a major boost to mortgage lenders’ business. And now, several of them are looking to capitalize on the low-rate environment — quite literally.
Another lender, loanDepot, is reportedly reviving its IPO plans after having abandoned them a few years ago. It’s not just the biggest players that are taking their companies public, though. Slightly smaller lenders and mortgage firms are also getting in on the act, including AmeriHome Mortgage Co. and Guild Mortgage, which have both announced IPO plans recently.
The mortgage industry is expected to originate more than $3.1 trillion in mortgage loans in 2020, according to the Mortgage Bankers Association’s most recent forecast. If that forecast proves accurate, that would represent a 45% increase from last year and the highest origination volume in many years — all because of the renewed demand caused by the low-rate environment.
Going public solves a big problem a lot of these companies have: access to capital. Unlike traditional banks, which can use the money coming in through deposits to fund new loans, these lenders have to rely on other sources. “The non-banks are always challenged to be able to raise the capital they need for operations and for the loans themselves,” said Rick Sharga, a mortgage industry veteran and executive vice president at real-estate data firm RealtyTrac.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »