Rocket Mortgage is acquiring Mr. Cooper Group Inc. in an all-stock deal valued at $9.4 billion. This acquisition follows Rocket’s recent purchase of real estate listing company Redfin. The merger aims to create a mortgage giant representing one in every six mortgages in the U.S., adding nearly 7 million clients to Rocket’s portfolio. The deal is expected to enhance loan volumes while reducing client acquisition costs.
Jay Bray, current Chairman and CEO of Mr. Cooper, will become the president and CEO of Rocket Mortgage. He stated that the combination will form the strongest mortgage company in the industry, offering a comprehensive homeownership experience supported by advanced technology and customer care.
The U.S. housing market has faced challenges due to high mortgage rates and unaffordable home prices. Companies like Rocket are responding by creating a more integrated shopping experience for potential homebuyers.
Under the terms of the agreement, Mr. Cooper shareholders will receive 11 Rocket shares for each share of Mr. Cooper common stock. Rocket shareholders will own approximately 75% of the combined company, with Mr. Cooper stockholders owning about 25%. The board of the combined company will consist of 11 members, nine from Rocket and two from Mr. Cooper.
Earlier this month, Rocket announced its acquisition of Redfin in an all-stock deal worth $1.75 billion. Redfin’s online platform features over 1 million for-sale and rental listings.
The National Association of Realtors reported a 4.2% increase in existing home sales in February compared to January, partly driven by easing mortgage rates and increased property availability.
— new from The Associated Press