DETROIT–Rocket Companies continues its aggressive push into the real estate and lending space, announcing it is acquiring Dallas-based Mr. Cooper Group.
Mr. Cooper Group is the largest servicer of residential mortgages in the country.
Rocket Cos. a fintech platform that offers mortgage, real estate, title and personal finance solutions is acquiring Mr. Cooper Group Inc. in an all-stock transaction for $9.4 billion in equity value, based on an 11.0x exchange ratio.
“With this acquisition, Rocket will bring its industry-leading mortgage recapture capabilities to a combined servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in America,” the company said in a statement. “Ultimately, this combination drives higher loan volume and long-term client relationships – while providing greater recurring revenue and lowering client acquisition costs.”
Second Recent Acquisition
As the CU Daily reported earlier, Rocket also just acquired Redfin, which provides real estate brokerage, rentals, lending and title insurance solutions.
“This allows Rocket to accelerate its AI-powered platform and remove the friction and complexities plaguing today’s homebuying process,” Rocket stated.
In a statement, CEO Varun Krishna 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. We look forward to welcoming Mr. Cooper’s nearly seven-million clients.”https://clicks.thecredituniondaily.com/form/IFB-67c1df50dbce13-48353883
More Than $2-Trillion in Portfolio
Rocket said that as a result of the deal, its combined servicing portfolio will exceed $2.1 trillion in unpaid principal balance – or one in every six mortgages in America.
The company said the transaction is expected to generate $100 million in additional pre-tax revenue from higher recapture rates and attaching Rocket’s title, closing and appraisal services to Mr. Cooper’s existing originations.
