TLDR
- Rocket Companies finalized its $14.2 billion acquisition of Mr. Cooper Group on October 1, 2025, creating the largest mortgage servicer in America.
- The merged company manages $2.1 trillion in unpaid principal balance across nearly 10 million clients.
- Rocket projects $100 million in new revenues and $400 million in cost savings from the transaction.
- Combined with July’s Redfin acquisition, Rocket now controls the entire home buying journey from search to servicing.
- RKT shares trade at $18, down 58% from 2021 peaks but up 32.6% over the past six months.
Rocket Companies closed its blockbuster $14.2 billion all-stock acquisition of Mr. Cooper Group on October 1, 2025. The deal represents the largest independent mortgage acquisition in United States history.
The combined operation now serves nearly 10 million customers. It manages $2.1 trillion in unpaid principal balance, representing approximately one in every six mortgages nationwide.
This transformative deal reshapes Rocket’s entire business structure. The company went public in August 2020 as primarily a mortgage originator. Low interest rates and pandemic-driven refinancing created strong initial performance.
Everything changed when the Federal Reserve raised rates to combat inflation. Mortgage demand dropped sharply. Rocket’s operating earnings fell as loan volumes declined.
The stock crashed hard. After reaching $43 per share in March 2021, RKT plummeted to $6. Shares currently trade around $18, still 58% below all-time highs.
Servicing Platform Adds Stability
The Mr. Cooper acquisition delivers the nation’s largest mortgage servicing operation to Rocket. Servicing generates consistent, recurring fee income that offsets volatility in the origination business.
Mortgage servicing creates ongoing customer relationships. These connections enable cross-selling opportunities for refinancing, insurance and personal loans. This model produces more predictable cash flows for investors.
Rocket expects $100 million in additional pre-tax revenues from improved recapture rates and expanded services. The company also projects $400 million in pre-tax cost savings through operational efficiency and technology integration.
Jay Bray, former Mr. Cooper CEO, said the transaction completes a successful multi-year growth period. He believes the Rocket partnership creates even greater opportunities ahead.
Varun Krishna, Rocket’s CEO, emphasized that homeownership remains central to the American Dream. He stated the combined platform will lower costs and simplify the entire process.
Complete Real Estate Ecosystem
Mr. Cooper isn’t Rocket’s only major acquisition. The company closed its purchase of Redfin in July 2025.
Redfin brings a popular real estate search platform and brokerage network. This addition funnels millions of potential buyers directly into Rocket’s mortgage ecosystem.
The vertical integration captures more value from each transaction. It reduces customer acquisition costs while improving profit margins.
Krishna praised Bray’s technology-driven approach that scaled Mr. Cooper into the largest servicer. He plans to integrate Mr. Cooper’s servicing capabilities with Rocket’s origination platform and AI technology.
The deal adds nearly 7 million new customers and 150 million annual customer interactions to Rocket’s database. This expanded data set will drive improved automation and personalization across the platform.
Mr. Cooper’s operations will transition to the Rocket brand. The combined business model should generate more stable earnings across different interest rate environments.
RKT shares have gained 32.6% over the past six months. The stock currently carries a Zacks Rank #3 (Hold) rating.
The October 1 closing date marks the official completion of the largest independent mortgage acquisition in U.S. history. Rocket now controls mortgage servicing, origination, real estate search, title and closing services under one platform.
