Originally Posted by batmaninja
The mortgage industry is not without risk. Typically, the housing market moves up and down in lockstep with the economy. Times are tough right now. The risk of loan defaults is high. But despite the risk, RKT stock is worth the investment.
It’s a company that has been in business for 35 years, is profitable and has been capitalizing on the recent surge in new mortgages and refinances. It’s innovative approach and use of technology appeals to consumers.
Been a great few months for the new homes guys in TX, I have heard several say that June/July were there best sales months on record. What happens when these loans start defaulting?
Rocket companies do not hold the loans. They are sold. If I remember it's something like 6% they would on the hook for if there were mass defaults. Just what I've read a few times.