(NewsNation) — Mr. Cooper, the largest home loan servicer in the U.S., is being bought by mortgage company Rocket in an all-stock deal valued at $9.4 billion.
The acquisition will create a business representing one in every six mortgages in the United States and give Rocket almost 7 million additional clients, Rocket Companies said Monday.
“By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology and grounded in customer care,” said Jay Bray, Mr. Cooper Group Chairman and CEO.
The U.S. is short nearly 4 million homes
Elevated mortgage rates, limited inventory and record-high prices have made it a rough few years for home buyers and sellers.
Rocket CEO Varun Krishna said the deal will allow the company to “pass meaningful savings on to homeowners” and make the loan servicing experience “easier, faster and more affordable.”
The mega real estate transaction comes just weeks after Rocket announced plans to acquire the home search platform Redfin in a deal valued at $1.75 billion.
What do the recent Rocket acquisitions mean for home buyers?
Rocket’s recent acquisition spree is aimed at creating a one-stop shop for many parts of the home-buying process. With Redfin and Mr. Cooper, the company said it plans to “bring together the homeownership experience at scale,” offering homebuyers a single place to connect with agents, lenders and mortgage servicers.
“This allows Rocket to accelerate its AI-powered platform and remove the friction and complexities plaguing today’s homebuying process,” the company said in a statement Monday.
Mortgage lender Rocket Cos. to acquire real estate brokerage Redfin
Glenn Kelman, CEO of Redfin, described the long-term vision like this: “We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes.”
By acquiring Mr. Cooper, Rocket said it will get more data with access to nearly 7 million additional clients and 150 million annual customer interactions. An improved data set will allow for better “automation, personalization and efficiency,” Rocket said.
The deal is expected to close in the fourth quarter of 2025 after receiving regulatory approval.
Rocket shares were down about 9% as of midday Monday, while shares of Mr. Cooper were up more than 15%.
The housing market has been in a slump in recent years after mortgage rates began to climb from pandemic-era lows. Last year, sales of previously occupied U.S. homes fell to their lowest level in nearly 30 years.
The Associated Press contributed to this report.
