Dallas-based mortgage services company Mr. Cooper Group is being acquired by Rocket Companies in an all-stock transaction for $9.4 billion.

Rocket is a Detroit-based fintech platform including mortgage, real estate, title, and personal finance businesses. Mr. Cooper Group—the largest home loan service in the country—is headquartered in the Cypress Waters development, which is located in the city of Dallas, south and east of the city of Coppell.

“Mr. Cooper has been on a journey to transform the homeownership experience, and we’ve built the most advanced servicing platform in the mortgage industry,” Jay Bray, Mr. Cooper Group chairman and CEO, said in a statement. “By combining Mr. Cooper and Rocket, we’ll form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology and grounded in customer care. I’m deeply grateful for the dedication of the Mr. Cooper team and look forward to our continued work as we lead our industry into the future of homeownership.”

Rocket said it will bring together the homeownership experience at scale with the acquisitions of Mr. Cooper and Redfin, allowing Rocket to accelerate its AI-powered platform and remove the friction and complexities plaguing today’s homebuying process.

“Servicing is a critical pillar of homeownership—alongside home search and mortgage origination,” Rocket CEO Varun Krishna said in a statement. “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. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.”

Mr. Cooper’s CEO to lead Rocket Mortgage

Rocket said the combined company will be led by an experienced board and leadership team that leverages the strengths and capabilities of both companies.

It’s expected that Bray will become president and CEO of Rocket Mortgage, reporting to Krishna. Dan Gilbert will remain chairman of Rocket Companies.

Upon closing, Rocket said the board of the combined company will consist of 11 members, nine of whom will be from the board of Rocket and two of whom will be from the board of Mr. Cooper.

Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock, representing a $143.33 per share value based on the closing price as of March 28, and a premium of 35% over the volume weighted average price of Mr. Cooper’s common stock for the 30 days ending March 28.

The deal is expected to close in the fourth quarter of 2025.

Highlights of the deal

Per Rocket, benefits of the combined company include:

Scaled homeownership platform: Rocket’s combined servicing portfolio will exceed $2.1 trillion in unpaid principal balance—or one in every six mortgages in America.

Accelerate origination-servicing recapture flywheel: Rocket Mortgage has ranked #1 in J.D. Power’s mortgage servicer study for 10 years and #1 in mortgage origination 12 times, driving the company’s 83% recapture rate — triple the industry average. With a significantly larger servicing portfolio, Rocket is poised to sustain its industry-leading retention and recapture rates, the company said.

Significantly increases data set to improve automation, personalization and efficiency: Following the acquisition of Mr. Cooper, Rocket will gain understanding of nearly 7 million additional clients and 150 million annual customer interactions.

Enhanced earnings growth opportunity across all interest rate market environments: The combined company will attain a balanced business model and maintain stability in all market environments, Rocket said. Rocket will drive earnings growth from high-margin recapture opportunities on the combined servicing portfolio, which together generated $4 billion of servicing fee revenue in 2024.

Substantial revenue and cost synergies: The transaction is expected to generate $100 million in additional pre-tax revenue from higher recapture rates and attaching Rocket’s title, closing, and appraisal services to Mr. Cooper’s existing originations. Rocket projects $400 million in pre-tax cost savings from streamlining operations, corporate expense, and technology investments.

J.P. Morgan Securities LLC is the financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to Rocket. Citigroup Global Markets Inc. is financial advisor and Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings LLP is legal counsel to Mr. Cooper.

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