Freedom Mortgage appears to have quietly climbed past Rocket in total loan production
Freedom Mortgage may have just pulled off one of the biggest surprises in the mortgage industry by surpassing Rocket Mortgage in loan production volume for the full-year 2024, putting it behind United Wholesale Mortgage (UWM), the largest mortgage lender in the US.
Freedom Mortgage reported $122 billion in total production volume for 2024, outpacing Rocket’s $101.2 billion in closed loan origination volume for the year. This shift is unexpected, given Rocket’s long-standing dominance in the retail mortgage space.
A big part of Freedom Mortgage’s growth came from bulk mortgage servicing rights (MSR) acquisitions. The company acquired $102 billion in MSRs by mid-2024, significantly boosting its loan servicing portfolio. By the end of the year, Freedom was servicing loans for more than 2.5 million homeowners, representing over $625 billion in mortgages.
Despite a tough lending environment, Freedom also helped more than 316,000 borrowers secure financing in 2024, including thousands of first-time homebuyers and veterans. Additionally, the company assisted 50,000 borrowers with loan modifications or partial claims.
Rocket Mortgage still had a strong year, reporting a 28% increase in net rate lock volume, generating $100.8 billion in that category, along with a 29% increase in closed loan origination volume compared to the previous year.
Despite this growth, its focus on retail lending may have put it at a disadvantage against Freedom’s aggressive MSR acquisitions and correspondent lending expansion.
"Despite challenging market conditions, we strategically grew our correspondent and bulk acquisition channels, driving tremendous growth in the servicing portfolio," Freedom president and CEO Stanley Middleman said in a media release. "I'm proud of how our dedicated employees worked together, and, once again, gave back to local communities across the country."
While Freedom’s performance was unexpected, UWM remains the market leader. The lender reported $139.4 billion in total originations in 2024, up nearly 29% from 2023. Its mortgage servicing rights portfolio grew to $242.4 billion, with a weighted average coupon rate of 4.76%.
Read more: UWM posts Q4, full-year financials
If Freedom Mortgage has indeed taken the number two spot behind UWM, it raises big questions about what’s ahead for Rocket Mortgage. Will Rocket adapt its strategy to reclaim its position, or will Freedom sustain its momentum?
While Rocket remains a powerful player, Freedom’s strategic use of bulk MSR acquisitions and correspondent lending has given it an edge that few saw coming. UWM remains in the lead, but as the competition tightens, the mortgage industry could be in for more surprises.
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