In & Out

Quicken Loans parent to exit mortgage lending
By MortgageDaily.com staff
6/21/2002

Intuit Inc. announced that it will reduce its interest in Quicken Loans, selling a majority stake to a group of private investors led by the founder and current chairman of the unit, Dan Gilbert. Mr. Gilbert will continue to serve as chairman of the new company, which is without a name as of yet, and Intuit will retain a small minority stake in the new entity.

Quicken Loans was originally founded in 1985 as Rock Financial, and went public in 1998, according to the announcement. Intuit purchased the company in 1999. After this transaction closes, the unit will continue to offer residential home mortgages and home equity loans under the Quicken Loans and Rock Financial brands.

Intuit's president and CEO, Steve Bennett, said that Quicken Loans "is no longer a good strategic fit for Intuit." He noted that by exiting the mortgage origination business, which is cyclical and produces less predictable earnings, Intuit will be better positioned to drive sustained increases in annual revenue and profits. The company said it also exited online insurance and online bill management during the past two years.

Quicken Loans says it is the 23rd largest retail mortgage lender in the country, with $4.6 billion production during 2001. The 1000-employee company operates online in all 50 states and claims to have the highest producing mortgage branch in Michigan.

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