Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United States. The deal is expected to close in Q4 2025.

The acquisition announcement comes barely weeks after Rocket’s $1.75 billion agreement to acquire residential portal Redfin, and will imminently create a mortgage servicing portfolio of $2.1 trillion across nearly 10 million customers, circa one in six U.S. home loans.

The deal will significantly strengthen Rocket’s mortgage infrastructure, positioning the Detroit-based lender significantly closer to the market leader, United Wholesale Mortgage.

In 2023, Rocket funded $101 billion in originations. By comparison, Mr. Cooper funded $22.8 billion, and UWM $139 billion.

Varun Krishna, CEO at Rocket, said:

"Servicing is a critical pillar of homeownership—alongside home search and mortgage origination.

"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."

The acquisition ramps up pressure on competitors, particularly Zillow, which is working to scale its agent referral and mortgage offerings. While Zillow has built out internal mortgage and agent software services, it has not posted a full-year profit in more than a decade. Rocket, meanwhile, has delivered positive net income in four of the last five years.

Mr Cooper was founded in 1889 and is listed on Nasdaq. Shared jumped from circa $104 to $122 upon news of the acquisition.

Jay Bray, Mr. Cooper Group Chairman and CEO, said:

"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. 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. I am deeply grateful for the dedication of the Mr. Cooper team and look forward to our continued work as we lead our industry into the future of homeownership."