Quicken Loans IPO Could be Largest of the Year

A report by CNBC says Quicken Loans, the largest mortgage lenders in the U.S. is planning an initial public offering (IPO). 

The report added that the Detroit-based company may be public by next month. 

CNBC states Quicken Loans is working with Morgan Stanley, Goldman Sachs, Credit Suisse, and JPMorgan to manage the deal. Valuation has yet to be decided but CNBC reports that it is “tens of billions of dollars” and possibly one of the largest IPOs of the year. 

Quicken Loans CEO Jay Farner told CNBC that March was the “biggest closing month in our company’s history with 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 and Morgan Stanley said they would not comment on the matter.

Mortgage applications have been growing across the nation. The Mortgage Bankers Association (MBA) revealed mortgage applications rose 9.3% weekly for the week ending June 5. 

Purchase applications continued its run of success, rising week-over-week by 15% and annually by 13%. 

"Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13% higher than a year ago," said Joel Kan, MBA's AVP of Economic and Industry Forecasting. "Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80 percent above year-ago levels."

Mortgage rates ticked up slightly on Thursday, according to Freddie Mac, with the average 30-year fixed-rate mortgage rising to 3.21%.