Rocket Companies has completed its acquisition of Mr. Cooper Group, in turn, bringing together a combined servicing portfolio of nearly 10 million homeowners.
“Homeownership is the bedrock of the American Dream. By combining mortgage servicing and loan origination, along with home search through Redfin, we are paving the path for Americans to own the dream,” said Varun Krishna, CEO and Director of Rocket Companies. “Jay Bray and his team have built a technology-driven platform that is the backbone of Mr. Cooper, helping it scale to become the largest servicer in the country. By integrating Mr. Cooper’s servicing strength with Rocket’s origination capabilities and AI technology and established strong national brand, our goal is to lower costs and make the process easier.”
After 25 years driving the expansion and culture of Mr. Cooper, Jay Bray, Mr. Cooper’s current CEO, will join Rocket as the new President and CEO of Rocket Mortgage, reporting to Rocket Companies CEO Krishna. Bray will also join Rocket’s board of directors.
“This transaction brings to a close a multi-year journey during which Mr. Cooper grew to become the nation’s largest servicer and produced enormous value for our clients, partners, stakeholders and investors,” Bray said. “Now, by joining forces with Rocket, we start a new journey, which I believe offers an even bigger opportunity. Through the power of our platform and our people, we will create a more personalized experience that makes owning a home more attainable and easier to navigate. Together, we will deliver the change the housing industry needs.”
As part of the acquisition, Mr. Cooper and all its servicing functions will be rebranded under the Rocket umbrella.
Upon closing of the deal, Mr. Cooper has officially delisted from the stock exchange following its acquisition by Rocket. Shareholders approved the transaction in September, agreeing to an exchange where they will receive 11 shares of Rocket for each share of Mr. Cooper. Also, a potential $2 per share dividend may be issued before the deal’s completion.
Back in July, Rocket Companies completed its acquisition of Redfin in an all-stock transaction for $1.75 billion. Founded in 2004, Redfin operates a home search platform with more than one million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents. Rocket’s digital platform has grown to provide home financing in all 50 states across more than 3,000 counties and parishes.
Founded in 1985, Rocket Companies is a Detroit-based fintech platform including mortgage, real estate, and personal finance businesses: Rocket Mortgage, Redfin, Mr. Cooper, Rocket Homes, Rocket Close, Rocket Money and Rocket Loans. Mr. Cooper Group provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the U.S. with operations under its primary brands: Mr. Cooper, Xome, and Rushmore Servicing.
