The Acquisitions of Mr. Cooper Group and Redfin Make Rocket a Mortgage Giant
The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm has doubled down on its vertically integrated model, acquiring both Redfin and the Mr. Cooper Group in 2025. We like this approach, as gaining the Mr. Cooper Group has made Rocket both the largest originator and the largest servicer of mortgages in the US, placing it in a dominant position. Rocket has always benefited from its industry-leading mortgage recapture rate, and it makes sense to lean into this advantage by expanding its servicing portfolio inorganically.
United States