Read more: Rocket posts strong Q2 results
Zillow has defended the syndication deal as a consumer benefit. “Our listing syndication with Redfin benefits both renters and property managers and has expanded renters’ access to multifamily listings across multiple platforms,” a spokesperson said. “It is pro-competitive and pro-consumer by connecting property managers to more high-intent renters.” Redfin has separately insisted it acted prudently by offloading an unprofitable line of business and reinvesting in technology for its core platform.
Rocket’s Expanding Ambitions
The litigation comes as Rocket Companies is deepening its footprint across real estate and mortgage services. On October 1, Rocket closed its $14.2 billion acquisition of Mr. Cooper, the nation’s largest mortgage servicer, in an all-stock transaction that swelled in value as shares climbed since March. The move follows Rocket’s summer purchase of Redfin, adding a consumer-facing search and brokerage platform to its growing empire.
Jay Bray, Mr. Cooper’s longtime chief executive, is now president and CEO of Rocket Mortgage, while also taking a seat on Rocket’s board. Rocket has forecast $400 million in annual cost savings from the combined operations. Chief executive Varun Krishna said the integration of origination, servicing, and property search “paves the path for Americans to own the dream.”
For mortgage professionals, these developments illustrate both opportunity and risk. On one hand, Rocket is consolidating its position as a one-stop shop spanning search, origination, and servicing. On the other, the FTC’s scrutiny of Zillow and Redfin underscores regulators’ growing willingness to police consolidation and alliances that shape the housing services ecosystem.