Moody's trims Home Point

Moody's Investors Service said it trimmed to B2 from B1 Home Point Capital Inc.'s corporate family rating and confirmed at B3 Home Point's senior unsecured debt rating.

Home Point's outlook was changed to stable from rating under review. These actions conclude the review for downgrade started on Aug. 10, the agency said.

The downgrade of Home Point's CFR reflects Moody's view that Home Point's earning capacity has diminished, with a heightened level of uncertainty concerning its ability to substantially rebuild capital over the next 12-18 months. The company has had a significant decline in reported gain-on-sale margins and is faced with increasingly intense competition in the wholesale origination channel through which it originates the majority of its mortgages,” the agency said in a press release.

The revised outlook reflects the expectation that the company's profitability and capital levels will continue or improve modestly, without a material weakening of its liquidity profile over the next 12-18 months, Moody’s said.

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