Home Point, the third largest mortgage company in the Big Three, aims to go unnoticed



Unlike some of its larger regional competitors, don’t expect to see the Home Point Capital Inc. logo. Super Bowl advertisements or professional athletes’ jerseys.

Phil Shoemaker, president of organizing a fast-growing wholesale mortgage lender in Ann Arbor, names Detroit-based Rocket Mortgage and United Wholesale Mortgage Inc. in Pontiac “worthy rivals”.

But Home Point, a relatively new entrant to the public stock markets, like others, is not interested in being a company with a big marketing budget that is widely known to consumers.

Home Point, Shoemaker said, is a mortgage company.

“We’re never going to be a consumer-centric brand,” Shoemaker said. “Our goal is to become a really good wholesale lender.”

Thus, the company works mainly with independent brokers who will look at potential mortgage deals with various lenders in search of the best conditions for their clients. Home Point uses a distributed model with people across the country who maintain close relationships with local real estate agents and loan officers, Shoemaker said.

While Home Point executives stress that they plan to stay on track and grow through relationships with independent mortgage brokers and real estate agents, the company is – founded in 2015 by a private investment company in Connecticut – is still significantly less than its competitors in the region.

Shoemaker says this suits him and other executives.

In total, Home Point employs about 3,600 employees, of which about 500 are in Michigan, following a series of layoffs in recent weeks that have been first reported by the industry publication Housing Wire.

Home Point laid off about 10 percent of its workforce after a hiring increase last year to cope with a mortgage refinancing boom, which has slowed this year as interest rates have risen and most refinancing eligible consumers have already done so.

Rocket Companies, the parent company of Rocket Mortgage and UWM, by comparison, employ approximately 26,000 and 9,300 employees, respectively.

Home Point mortgages last year, a record for the sector, totaled $ 62 billion. Rocket and UWM were created for a total of $ 320 and 182.5 billion, respectively.

According to Guy Sekala, president and CEO of industry publication Inside Mortgage Finance, Home Point is a “rising star” in the mortgage sector. Home Point ranked 15th among the country’s lenders and fastest growing last year, according to the IMF. Meanwhile, according to the IMF, Rocket and UWM ranked first and fourth, respectively, depending on the origin of the loans.

In particular, Rocket executives long tense that their company should be valued more as a financial technology company rather than just a lender.

Shoemaker, however, said Home Point, which focuses on being just a mortgage company, is taking a different approach by considering using proprietary technology.

“The area of ​​technology is important. It’s just that we’re not here to create technology, because we’re not a mortgage lender, ”Shoemaker said.

“The whole purpose of technology, as we see it, is to truly make our people more efficient and provide a better experience and better product for the partners and customers we serve,” he continued. “So it plays a role, right, but we’re not primarily a technology company, we’re primarily a mortgage company.”

Late last year, Home Point announced the implementation of a low-code technology platform that the company says will accelerate loan processing, provide visibility into real-time monitoring processes, and improve data integrity and availability.


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