Mortgage giants announce huge deal
Rocket Companies has inked a blockbuster deal to purchase Mr. Cooper, the largest mortgage servicer in the US, in a move the company said would combine a servicing book of more than $2 trillion.
The all-stock purchase, valued at $9.4 billion in equity value, will see Rocket grow its market share to nearly 10 million clients – or one in every six mortgages across the US, the company revealed Monday morning.
The massive deal arrives just weeks after Rocket announced it was purchasing real estate listings site Redfin for $1.75 billion and marks the latest in a series of dramatic moves by the mortgage giant to turbocharge its growth in the national market.
Mr. Cooper Group chairman and chief executive officer Jay Bray will become president and CEO of Rocket Mortgage, according to a press release, while Dan Gilbert will remain chairman of Rocket Companies.
The combined board will feature nine members from the board of Rocket and two from the board of Mr. Cooper.
Rocket said the move would allow it access to Mr. Cooper’s nearly seven million clients and 150 yearly customer interactions, and attach Rocket’s title, closing and appraisal services to existing originations at Mr. Cooper.
It said it expects $400 million in pre-tax cost savings as a result of streamlined operations, corporate expense and technology investments, while the deal is also projected to generate about $100 million in pre-tax revenue.
The deal is expected to close in the fourth quarter of 2025, subject to regulatory approval and the endorsement of Mr. Cooper shareholders.
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