Rocket + Redfin + Mr. Cooper = First in Class

April 1, 2025 | Premium Service | With the surprise announcement of the purchase of Mr. Cooper (COOP) by Rocket Companies (RKT), our earlier predictions of accelerating consolidation in the residential mortgage sector have been fulfilled and then some. Combined with the purchase of Redfin (RDFN) only days before, RKT has deployed its currency, financial power and reputation to up the ante on mortgage industry consolidation. Who are the winners and losers in this stunning escalation of the race to dominate mortgage? 

Why is this transaction significant? First and foremost, the combination of COOP and RKT, plus RDFN, creates an integrated business of realty, lending, servicing and asset management that is impressive. RKT is the #2 lender behind United Wholesale Mortgage (UWMC) and one of two nonbanks that play in the jumbo market, Inside Mortgage Finance Reports, the remaining top-10 issuers being banks led by JPMorganChase (JPM). The addition of COOP and the largest primary servicing book in the industry gives the RKT franchise considerable new heft and internal cash flow generation, plus the ability to manage assets for institutional investors and other issuers. 

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