Despite these headwinds, Brown noted that Rocket ended the third quarter with $4 billion of available cash and $7.3 billion of mortgage servicing rights.
“Together, these two assets represent a total of $11.3 billion of value on our balance sheet, equating to more than $5.50 per share,” he said. “Rocket’s financial strength is a major strategic advantage for us as we weather the current market environment.”
As of September 30, the company’s mortgage servicing portfolio included 2.5 million clients with $531 billion in unpaid principal balance. The value of its MSRs was $7.3 billion, reflecting a gain of $1.9 billion year-to-date.
“Looking ahead to the fourth quarter, we anticipate a further reduction in total expenses of $50 million to $100 million compared to the third quarter,” Brown said. “Over the past 12 months, we have taken significant action to reduce our overall cost structure.
“In fact, if we look at the third quarter of this year compared to the third quarter of last year on an annualized basis, we have reduced our expenses by more than $2 billion or approximately one-third of our total costs. As we navigate and adjust to the current environment, we’re continuing our long-term strategy of investing in our platform with an eye toward the future.”