Rocket Companies has reached an agreement to acquire mortgage-servicing giant Mr. Cooper Group Inc. for $9.4 billion in stock.
The deal comes less than a month after Rocket, the parent of Rocket Mortgage and other residential real estate businesses, announced plans to take over Redfin for $1.75 billion in stock.
The acquisition of Mr. Cooper will boost Rocket’s mortgage servicing book to $2.1 trillion across almost 10 million borrowers, or one in every six mortgages in the United States, according to an announcement.
With the takeovers of Redfin and Mr. Cooper, Rocket said it’s aiming to become a one-stop shop for homebuyers by providing real estate agents; lenders; closing, title and appraisal companies; and mortgage servicers under one AI-powered roof.
“Servicing is a critical pillar of homeownership — alongside home search and mortgage origination,” Rocket CEO Varun Krishna said. “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.”
Upon the deal’s closing — expected in the fourth quarter — Mr. Cooper Chairman and CEO Jay Bray will become president and CEO of Rocket Mortgage, replacing Krishna in the role. Bray will report to Krishna, who will remain CEO of Rocket.
“Mr. Cooper has been on a journey to transform the homeownership experience, and we have built the most advanced servicing platform in the mortgage industry,” Bray said. “By 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.”