RKT - Moody's gives only one finance sector a positive outlook for 2021

Moody's sees a positive 2021 outlook for only one of 12 finance company subsectors; the outlooks on seven are negative with the remaining four seen as stable.The U.S. non-bank residential mortgage sector is the one that holds a positive outlook: "Profitability will remain strong and origination volumes elevated as the refinance boom continues into 2021, with average ROA >2.5%."Expects non-bank mortgage companies to rebuild capitalizations over the next year, helped by profitability from their production segments.Even though these companies will face increased servicer advance obligations from borrower forbearance arrangements and rising delinquencies over the next several quarters, Moody's expects that rated servicers will be able to meet these obligations even in a severely adverse scenario.Companies in Moody's coverage include New Residential (NRZ), Mr. Cooper's (COOP) Nationstar, Ocwen's (OCN) PHH,  PennyMac Financial (PFSI), PennyMac Mortgage (PMT), and Rocket Companies'  (RKT) Quicken.The subsectors with negative outlooks are: aircraft lessors, U.S. credit cards,

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Moody's gives only one finance sector a positive outlook for 2021