Financial Data and Key Metrics Changes - The company reported adjusted revenue of $1.3 billion, at the high end of guidance, with adjusted diluted EPS of $0.04, reflecting strong performance in Q1 2025 [11][29] - Net rate lock volume reached $26 billion, a 17% year-over-year increase and an 11% quarter-over-quarter increase, driven by growth in refinance and home equity loans [30] - Gain on sale margin was 289 basis points, down from 311 basis points year-over-year, but consistent with the weighted average over the last twelve months [30] Business Line Data and Key Metrics Changes - The company served 21% more origination clients in March 2025 compared to March 2024, with a 14% reduction in turn times [11] - The home equity loan offering achieved another record quarter, indicating strong demand in that segment [90] Market Data and Key Metrics Changes - Housing inventory increased by 25% year-over-year, providing relief to buyers, while 30-year fixed mortgage rates declined from 7% in January to around 6.6% in March [6][31] - Active home listings reached 960,000 in April, marking a 31% year-over-year increase, with homes staying on the market longer, contributing to moderating home price growth [33] Company Strategy and Development Direction - The company announced strategic acquisitions of Redfin and Mr. Cooper, aimed at creating an integrated homeownership platform and enhancing client experience [25][40] - The focus is on building a balanced business model that harmonizes servicing and origination across market cycles, leveraging over 30 petabytes of proprietary data [26][40] Management's Comments on Operating Environment and Future Outlook - Management noted that April 2025 was challenging due to market volatility and declining consumer sentiment, leading to a slowdown in home buying activity [32][34] - For Q2 2025, the company expects adjusted revenue to range from $1.175 billion to $1.325 billion, reflecting a 2% year-over-year growth at the midpoint [34] Other Important Information - The company emphasized the importance of AI and automation in enhancing productivity and operational efficiency, allowing for scalable growth without increasing fixed costs [37][82] - The balance sheet remains strong, with $2.9 billion in available cash and $7.4 billion in mortgage servicing rights, totaling $10.3 billion in balance sheet value [42] Q&A Session Summary Question: Outlook for 2025 considering recent softness in April - Management acknowledged the market dynamics shift from Q1 to Q2, highlighting the impact of tariff announcements and consumer confidence dips [49][51] Question: Strategic benefits of recent acquisitions - Management confirmed that the acquisitions are aligned with long-term strategy goals and will enhance market share [76][78] Question: Subservicing strategy post-merger with Mr. Cooper - Management expressed excitement about the subservicing business and plans to honor all contractual provisions with subservicers [62][64] Question: Near-term outlook for Rocket Pro channel - Management is optimistic about growth prospects in the broker space, focusing on technology and strategic relevance [67][71] Question: Potential for future acquisitions to grow market share - Management stated that current focus is on integration of Redfin and Mr. Cooper, with no immediate plans for additional acquisitions [76][78] Question: Capacity growth and expense savings in the back half of the year - Management indicated that capacity is growing daily and that there is potential for cost savings if mortgage volumes do not meet expectations [86][88]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $613 million and a net loss of $247 million, which included a $388 million reduction in the fair value of the MSR portfolio [14][10] - The adjusted EBITDA for the quarter was $58 million, with a gain margin of 94 basis points [14][10] - The company experienced a 17% year-over-year growth in production, closing $32.4 billion for the quarter [9][14] Business Line Data and Key Metrics Changes - The company originated over $20 billion in purchase volume for eight consecutive quarters, viewing this as a stable base [15] - Refinance volume nearly doubled year-over-year from $5.5 billion to $10.6 billion, despite a challenging rate environment [15][9] Market Data and Key Metrics Changes - The mortgage brokerage channel's share of the industry increased from approximately 19.7% to nearly 28% since 2022, marking the highest level since February 2008 [5][6] - The company maintained a strong liquidity position with $485 million in cash and $2.4 billion in total accessible liquidity as of the end of Q1 2025 [16] Company Strategy and Development Direction - The company announced a strategic decision to bring servicing in-house, aiming to leverage technology and AI for efficiency, with expected cost savings between $40 million and $100 million annually [7][8] - The focus remains on investing in technology to maintain a competitive edge, with plans to roll out significant technological advancements in the near future [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile market, highlighting operational excellence that allowed for increased production without sacrificing quality [8][12] - The company anticipates Q2 production between $38 billion and $45 billion, with expectations to exceed $40 billion, driven by a strong purchase market [23][50] Other Important Information - The company plans to maintain its dividend of $0.40 per share, rewarding shareholders consistently over the past four years [21] - Management emphasized the importance of controlling the MSR process, which may lead to retaining more MSRs in the future [39][41] Q&A Session Summary Question: Timeline and costs for bringing servicing in-house - Management expects to start boarding loans in early 2026 and complete the transition by the end of next year, with no significant one-time costs anticipated [28][30] Question: Future of ARMs in the market - Management noted that while ARMs may become more appealing as rates rise, they do not expect a significant shift in consumer preference towards ARMs [32][34] Question: Impact of bringing servicing in-house on MSR disposal - Management indicated that bringing servicing in-house could lead to retaining more MSRs, allowing for better control and value capture [39][41] Question: GSE reform and market preparation - Management believes that potential GSE reforms are far off and expressed confidence in the current leadership in the mortgage market [42][44] Question: Second quarter outlook and competition - Management is optimistic about exceeding $40 billion in production, attributing this to investments and a strong broker channel [50][51] Question: Technology investments and expense impact - Management confirmed that while expenses may rise due to investments, revenue is also expected to increase, leading to a favorable outcome [62][65] Question: Leverage and financial ratios - Management emphasized that financial ratios are in a strong position and that the focus should be on business dominance rather than specific leverage metrics [71][72]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $613 million and a net loss of $247 million, which included a $388 million reduction in the fair value of the MSR portfolio [12][14] - The adjusted EBITDA for the quarter was $58 million, with a gain margin of 94 basis points [9][12] - Year-over-year production growth was 17%, with total production reaching $32.4 billion [8][12] Business Line Data and Key Metrics Changes - The company closed $10.6 billion in refinance volume, nearly double the amount from Q1 2024 [8][13] - The company has maintained over $20 billion in quarterly purchase volume for eight consecutive quarters, indicating a strong base [13] Market Data and Key Metrics Changes - The mortgage brokerage channel's market share increased from approximately 19.7% to nearly 28% since 2022, marking the highest level since February 2008 [4][5] - The company’s Net Promoter Score (NPS) for the quarter was 87.3, reflecting industry-leading service levels [10] Company Strategy and Development Direction - The company announced a strategic decision to bring servicing in-house, aiming for significant cost savings estimated between $40 million and $100 million annually [6][7] - The focus remains on investing in technology to maintain a competitive edge, with plans to roll out new technological advancements soon [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a choppy macro environment and emphasized ongoing investments to support growth [11][14] - The company expects Q2 production to be between $38 billion and $45 billion, with hopes to exceed $40 billion [21][47] Other Important Information - The company plans to maintain its dividend of $0.40 per share, consistent with previous years [20] - The company is preparing for UWM Live, an event expected to showcase significant industry changes [20] Q&A Session Summary Question: Timeline for bringing servicing in-house and expected costs - The company expects to start boarding loans in-house by early 2026, with no significant one-time costs anticipated [25][29] Question: Future of ARMs in the market - Management indicated that while ARMs may become more appealing as rates rise, they do not expect a significant shift in consumer preference towards ARMs [30][32] Question: Impact of bringing servicing in-house on MSR disposal - The company plans to be more opportunistic with MSR retention and disposal, potentially holding more MSRs to capture value [36][39] Question: GSE reform and its implications - Management believes that any potential GSE reform is far off and expressed confidence in their ability to adapt to changes in the mortgage market [40][42] Question: Second quarter outlook and embedded assumptions - The company is optimistic about exceeding $40 billion in production, driven by investments and a strong broker channel [46][48] Question: M&A strategy and technology enhancements - The company prefers organic growth over acquisitions, focusing on building technology in-house rather than buying other companies [51][53] Question: Impact of technology changes on expenses - Management expects that while expenses will remain high due to investments, revenue will also increase, leading to a favorable outcome [58][61] Question: Leverage ratios and financial health - Management emphasized that leverage ratios are in a good position and that the focus should be on business dominance rather than specific financial metrics [65][66]