Weeks After Redfin Acquisition, Rocket Makes $9.4B Deal for US’s Largest Loan Service
Interest rates might be high and mortgage originations might be low, but America’s largest lender is still closing — just not on houses. Taking advantage of a slower market for homebuying, the parent company of Rocket MortgageRKT is pulling out their checkbook and making big deals. Early in March, it announced a $1.75B deal to acquire real estate brokerage RedfinRDFN. And to cap off March, it did an even bigger deal.
- Rocket Companies announced Monday that it would acquire America’s largest loan servicer, Mr Cooper GroupCOOP, in a $9.4B deal.
- After the deal is closed, Rocket’s mortgage portfolio will cover $2.1T in US mortgages — or about one in six loans — across 10M clients.
End-to-end experience: Rocket CEO Varun Krishna says that “Home search, brokerage, financing, title, closing, and servicing should be seamless, but today they’re not,” adding that, “If we want truly want to fix that, we have to own the client experience from beginning to its true end.” As a result, the corporation’s spend-a-thon continues — and at an ideal time for Rocket. The deal is one of the largest in the history of the mortgage industry. And with the broader mortgage sector struggling, there could be even more deals. However, investors might not tolerate much deal-shopping —RKT fell 7.8% on the news, whileCOOP rose 16%.