Dan Gilbert in His Own Words
JC Reindl provides a dispatch from the proceedings at theNorth American International Auto Show at Cobo Center in downtown Detroit, where Dan Gilbert, owner of Quicken Loans and famed investor in Detroit's revitalization, sat down for a rare in-depth interview with Bloomberg's Betty Liu.
According to Rendl, the conversation went into great detail on the growth of Quicken in the mortgage industry—the company recently surpassed Wells Fargo as the largest direct-to-consumer mortgage lender in the nation.
"Yet being No. 1 in mortgages is a lot different than being tops in other industries, such as automotive. In the highly fragmented mortgage sector, where prospective borrowers can visit some 30,000 bank branches and credit unions across the country for a home loan, Quicken's commands a market share of just 5.4%," explains Reindl. Still, Gilbert hopes the company's focus on technology, exemplified by the Rocket Mortgage mobile and online brand, could help grow that market share to 10 percent.
A key aspect of the public interest in Dan Gilbert's business dealings are tied up in Detroit's interest in Dan Gilbert's business dealings. With 13,000 employees in Detroit, if Quicken sputters, so too could Detroit, according to the article.
Another angle of interest to planners is the lingering concerns about mortgage lending in the wake of the sub-prime crisis and Great Recession of a decade ago. "Some market observers have raised concerns about the possible risks and dangers of nonbank mortgage lenders, contending that such firms are vulnerable to sudden dry ups in their short-term credit lines," according to Reindl. "Gilbert insists that Quicken is well capitalized and less risky than many banks." Moody's also has faith in the company, raising Quicken's bond rating in December.