Home Point Capital announced today that the company had an origination volume of $ 62 billion in 2020, including $ 24 billion in the fourth quarter. That is roughly three times the volume of 2019. That volume growth resulted in a wholesale market share of 8.2% after 4.5% in the fourth quarter of 2019, according to Home Point.
“Our fourth quarter 2020 results have concluded a transformative year for Home Point Capital driven by the record performance of our origination platform in all dimensions,” said Willie Newman, President and CEO. “Our growth was mainly driven by our wholesale channel, where we doubled our market share compared to 2019. This achievement underscores the effects of our differentiated business model. “
The company posted net income of $ 185 million in the fourth quarter of 2020, up from $ 16 million in the year-ago period and $ 264 million in the third quarter of 2020. This decrease was explained by costs related to higher loan volumes.
Home Point’s service platform also grew. The total number of customers served rose this year to 359,323, an increase of 52% from the end of 2019 and an increase of 17% from the third quarter of 2020.
On a post-release win call, Newman was asked about the impact of recent competition for broker market share between United Wholesale Mortgage and Rocket. While declining to comment directly on decisions made by either company, he noted that Home Point may be set up for the benefit. He said Home Point had seen significant new interest over the past week from brokers who may need to fill a void in their models left by either Rocket or UWM.
“What we’re hearing from the brokerage cohort is that they are looking for another great source,” Newman said. “There are major concerns about not having the choices they will appreciate and we feel very well positioned to be the next choice.”