With the mortgage industry in flux, Rocket Companies Inc., the parent of Rocket Mortgage and several other mortgage and finance companies, felt the sting of a changing lending environment, which showed in its latest earnings report.
The Detroit-based company saw a sharp drop in its profits in the second quarter of 2022 after earning $1.4 billion—down 52% from the same quarter last year when it raked in $2.7 billion. The company tallied a $60 million profit for the quarter compared to the $1 billion it made in the first three months of 2020.
According to company executives, the performance indicated the rapidly shifting mortgage industry, which has faced volatile mortgage rates and declining consumer sentiment that climbed to nearly 6% in June.
Rocket Mortgage saw its mortgage origination closed loan volume drop from $83.76 billion in Q2 last year to…