In a major shake-up in the mortgage industry, Rocket Companies has announced it will acquire Mr. Cooper, a mortgage giant headquartered in Coppell, Texas, in an all-stock transaction valued at $9.4 billion. The deal is expected to close in the fourth quarter of 2025.
With this acquisition, Rocket will represent one in every six mortgages in the U.S., adding 7 million clients to its portfolio. The merger is expected to increase loan volume, expand recurring revenue, and reduce customer acquisition costs.
“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,” said Jay Bray, Chairman and CEO of Mr. Cooper Group.
Bray will step into the role of President and CEO of Rocket Mortgage after the deal is finalized. He will report directly to Varun Krishna, CEO of Rocket Companies. Dan Gilbert, Rocket’s founder, will remain Chairman of the company.
The board of the new combined company will consist of 11 members, including two from Mr. Cooper’s board. Under the terms of the agreement, Mr. Cooper shareholders will receive 11 shares of Rocket stock for each Mr. Cooper share they own—a 35% premium based on pre-market prices. After the transaction, Rocket shareholders will own 75% of the combined company.
This deal comes on the heels of Rocket’s recent announcement to acquire Redfin, the online real estate and brokerage platform, in a separate $1.75 billion deal.
What It Means for the D-FW Real Estate Market
Mr. Cooper plays a major role in both national and local mortgage servicing. In February, the median home price in Dallas-Fort Worth reached $395,000, a 1.5% increase from the previous year. However, home sales declined by 4.4%, totaling approximately 6,400 closed transactions, according to the MetroTex Association of Realtors.
Nationally, the National Association of Realtors reported a 4.2% increase in the sales of previously owned homes in February, attributed to slightly lower mortgage rates and increased housing inventory. As of March 27, the average 30-year mortgage rate stood at 6.65%, according to Freddie Mac.
