Detroit’s Quicken Loans Reportedly Planning an IPO

Detroit-based Quicken Loans, the nation’s largest mortgage lender, is planning an initial public offering, unnamed sources told CNBC.
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Quicken Loans is planning an initial public offering, unnamed sources told CNBC. // Stock photo

Detroit-based Quicken Loans, the nation’s largest mortgage lender, is planning an initial public offering, unnamed sources told CNBC.

The IPO could happen as early as next month, the sources revealed. The company, founded and owned by Dan Gilbert, reportedly filed its IPO prospectus confidentially.

Quicken Loans is said to be working with Morgan Stanley, Goldman Sachs, Credit Suisse, and JPMorgan to manage the deal. The targeted valuation still is being decided, but it is likely in the tens of billions of dollars, according to the CNBC report. A multi-billion-dollar IPO would be one of, of not the largest, this year.

Gilbert started the company 35 years ago. He’s credited with helping to revitalize downtown Detroit and also is chairman and majority owner of the NBA’s Cleveland Cavaliers.

Quicken Loans CEO Jay Farner said on CNBC in mid-April that March was the “biggest closing month in our company’s history – nearly $21 billion in mortgages closed.” He said the company was estimating nearly $75 billion in mortgage applications in the second quarter, compared with almost $53 billion in the first quarter.

Mortgage rates set a new record low on Thursday thanks to falling interest rates, with the average rate on a 30-year fixed mortgage reaching 2.97 percent, according to Mortgage News Daily. Low rates have encouraged homeowners to refinance.

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