Rocket Companies is transforming homebuying with its $9.4B acquisition of Mr. Cooper Group and $1.75B offer for Redfin. CEO Varun Krishna aims to create a seamless homeownership experience from search to servicing.
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“Servicing is a critical pillar of homeownership, alongside home search and mortgage origination,” Krishna said. “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.”
These two acquisitions are the latest steps by the company to continue building an all-encompassing mortgage platform that works with customers from the time they consider a loan through to when the loan is paid off. Jay Bray, Mr. Cooper Group chairman and CEO, echoed Krishna’s thoughts.
“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,” Bray said. “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.”
To help support these acquisitions, the company secured a $1.15 billion revolving credit facility, which could increase to $2.25 billion once the Mr. Cooper acquisition closes.
Loan volume increases year over year
In direct-to-consumer loans, Rocket outpaced Q1 2024. In the first quarter, sold loan volume was $11.3 billion, an increase from $9.05 billion last year. Total net revenue dropped from $1.09 billion last year to $758 million this year, although adjusted revenue increased from $873 million to $1.02 billion.