Rocket Companies To Acquire Mr. Cooper In Bombshell $9.4b Deal

Rocket Companies is buying Mr. Cooper, America’s largest mortgage servicer, in a market-shattering deal that could reshape the mortgage industry for years to come.

The Detroit-based fintech, which is also in the midst of acquiring real estate brokerage and home search portal Redfin for $1.75 billion, is paying an equity value of $9.4 billion in stock, the companies said in a statement early Monday morning.

With this acquisition, Rocket will have a combined servicing book of $2.1 trillion, spread across nearly 10 million clients. That’s one out of every six mortgages in America.

Rocket also has arguably the strongest recapture game in the industry, and a deal like this would give it a distinct advantage over all other competitors.

“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” said Varun Krishna, Rocket CEO. “With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.”

Under the deal terms, Jay Bray, the current CEO of Mr. Cooper, will be president and CEO of Rocket Mortgage, reporting to Krishna.

Rocket said the the transaction is expected to generate $100 million in additional pre-tax revenue from higher recapture rates and attaching its title, closing and appraisal services to Mr. Cooper’s existing originations. Mr. Cooper did about $23 billion in originations last year, according to Inside Mortgage Finance data.

Rocket projects $400 million in pre-tax cost savings from streamlining operations, corporate expense and technology investments.

To help finance the transaction, Rocket is taking out a nearly $5 billion bridge loan through JPMorgan Chase (which itself is a top-3 mortgage servicer and warehouse lender).

The deal is expected to close in the fourth quarter of 2025.