Rocket Companies announced Monday that it plans to buy mega-servicer Mr. Cooper for $9.4 billion, boosting the Detroit-based lender’s book of business to $2.1 trillion.
The all-stock transaction, expected to close in the fourth quarter of 2025, will bring nearly 7 million Mr. Cooper clients into Rocket’s ecosystem, according to a press release.
Overall, Rocket will service nearly 10 million clients, representing one in every six mortgages in the U.S.
Once the deal is finalized, Mr. Cooper CEO Jay Bray will become president and CEO of Rocket Mortgage but report to Varun Krishna, Rocket’s CEO, the company said.
Rocket’s announcement comes shortly after the megalender revealed it is in the process of acquiring real estate brokerage Redfin for $1.75 billion as part of a push to expand its presence in the purchase market.
“Servicing is a critical pillar of homeownership — alongside home search and mortgage origination,” said Krishna, in a statement Monday. “With the right data and AI infrastructure we will deliver the right products at the right time. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.”
Rocket expects the transaction to generate $100 million in pre-tax revenue “from higher recapture rates and attaching Rocket’s title, closing and appraisal services to Mr. Cooper’s existing originations,” it said. The online mortgage provider also projects $400 million in pre-tax cost savings from streamlining operations.
The merger will give Rocket access to data from Mr. Cooper’s nearly 150 million annual customer interactions, it said.
“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,” added Mr. Cooper’s Bray.
Rocket plans to transfer its MSR portfolio from ICE Mortgage Technology’s platform to Sagent’s, according to KBW reports from a call with analysts about the acquisition.
Rocket shares were down 5.22% at $12.35 shortly after 9 a.m. in early New York trading, when shares of Mr. Cooper were up 22.85%.
