Rocket Mortgage Acquires Mr. Cooper in $9.4 Billion Deal
Overview of the Acquisition
Rocket Mortgage has announced its acquisition of Mr. Cooper Group Inc., the nation’s largest mortgage servicer, in an all-stock transaction valued at $9.4 billion. This merger will create a mortgage giant that handles one in every six mortgages in the United States, servicing a combined book of $2.1 trillion across nearly 10 million clients.
The deal is part of Rocket’s strategy to streamline the homeownership experience by integrating mortgage servicing, origination, and home search platforms into a unified ecosystem powered by AI technology.
Impact on the Mortgage Industry
The merger positions Rocket as a dominant player in the U.S. housing market, with significant advantages:
- Enhanced Scale: The combined company will serve nearly 7 million new clients from Mr. Cooper’s portfolio.
- Cost Efficiency: Reduced customer acquisition costs and operational efficiencies are expected to save approximately $400 million annually.
- Recurring Revenue: Increased loan volumes and long-term client relationships will drive greater recurring revenue.
This move follows Rocket’s recent acquisition of Redfin for $1.75 billion earlier this month, further solidifying its position as a leader in real estate and mortgage services.
Leadership and Governance
The combined company will be led by an experienced board and leadership team leveraging strengths from both organizations:
- Jay Bray: Current CEO of Mr. Cooper will become President and CEO of Rocket Mortgage.
- Varun Krishna: CEO of Rocket Companies will oversee the merged entity.
- Board Composition: The board will consist of 11 members—9 from Rocket and 2 from Mr. Cooper.
What It Means for Homeowners
This merger aims to simplify the homeownership journey by offering integrated services such as home search tools, mortgage origination, and servicing under one platform. Rocket plans to utilize AI-powered solutions to proactively meet client needs and deliver personalized products at scale.
For existing Mr. Cooper customers, the transition is expected to be seamless with no immediate changes to mortgage terms or payment processes.
Timing and Next Steps
The transaction has been unanimously approved by the boards of both companies and is expected to close in the fourth quarter of 2025, pending regulatory approval and shareholder votes.
A conference call discussing the merger was held on March 31, 2025, with replays available on the investor relations sections of Rocket’s and Mr. Cooper’s websites.