Rocket earned $709 million last quarter while UWM lines up an $80 billion servicing sale

Rocket CEO Varun Krishna reported $709 million of GAAP net income for the third quarter on Oct. 29, after a $124 million loss in the same quarter of 2025 ^[1]. The company closed $43.6 billion of mortgages and services $2.0 trillion of loans for 9.1 million borrowers ^[1].

Krishna told analysts that for families trying to buy, “the math went from hard to punishing” ^[2]. The 30-year fixed rate averaged 7.24% in Freddie Mac’s latest weekly survey, up from 6.17% a year earlier ^[9].

Rocket more than doubled its revenue from a year ago

Total net revenue reached $3.28 billion, and adjusted revenue came in at $2.57 billion ^[1]. Real Estate News reported that the adjusted figure landed at the low end of Rocket’s $2.5 billion to $2.7 billion guidance ^[2]. In the release, Krishna said, “We didn’t spend the last three years waiting for rates to fall” ^[1].

Rocket guided fourth-quarter adjusted revenue to $2.1 billion to $2.3 billion ^[1]. By our math, the midpoint sits about 15% below the third quarter.

UWM is selling servicing rights and raising $400 million to cut debt

UWM, the wholesale lender run by Mat Ishbia, released preliminary numbers on Oct. 23 showing $33.4 billion of originations, with refinances at $10.6 billion ^[3]. A year earlier it originated $41.7 billion, including $16.5 billion of refinances ^[4].

UWM expects net income of $205 million to $220 million for the quarter, after a $451.9 million net loss in the second quarter ^[3][5]. It plans to sell $70 billion to $80 billion of mortgage servicing rights in the fourth quarter for more than $1.8 billion, and it lowered its 2026 revenue outlook to $3.35 billion to $3.50 billion ^[3]. Those proceeds and $400 million from a rights offering backstopped by Ishbia and Oaktree funds will go toward paying down debt ^[3][7].

Chase made more mortgages while Wells Fargo’s home lending revenue fell

JPMorgan originated $16.0 billion of mortgages in the third quarter, up 15% from a year earlier by our calculation, though its home lending net revenue slipped 3% to $1.2 billion ^[6][8]. CEO Jamie Dimon said the economy was “fueled by strong business investment and ongoing consumer spending” ^[8]. At Wells Fargo, home lending revenue dropped to $743 million from $870 million, which the bank tied to lower servicing income and smaller loan balances ^[10].

How to use this

For homebuyers and refinancers

1. Get a quote from a bank and a nonbank lender on the same day and compare the rate, points and lender credits line by line. Rocket earned a 4.31% gain on sale margin on direct-to-consumer loans and 0.70% on loans from brokers ^[1], which suggests the channel you choose changes how much room the lender has to negotiate.
2. Ask for a written rate lock with a float-down option. On a $400,000 loan at 7.24% ^[9], we calculate principal and interest at about $2,726 a month.
3. Watch your mail for a servicing transfer notice if UWM services your loan, since it plans to sell $70 billion to $80 billion of servicing rights this quarter ^[3]. Confirm the new servicer’s payment address in writing before you change any automatic payment.

For investors and lenders

1. Plan for lower volume next year. The Mortgage Bankers Association expects 2027 originations to fall 5% to under $2 trillion, with rates above 7% ^[11].
2. Compare the two lenders’ balance sheets before you buy either stock. Rocket held $2.7 billion of available cash at quarter end ^[2], while UWM put its net non-funding debt at 1.75 to 1.80 times its equity and is selling servicing to bring that down ^[3].
3. Mark Nov. 12 on the calendar if you hold UWM shares. That is when the rights offering expires, and the subscription price is the greater of $2.00 or 85% of the average price from Oct. 27 to Nov. 9 ^[7].