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Rocket Closes $14.2 Billion Mr. Cooper Deal, Installs Jay Bray to Lead Rocket Mortgage

The all-stock acquisition advances Rocket’s push for a tech-driven homeownership platform under new GSE servicing limits.

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Overview

  • Mr. Cooper’s operations are being rebranded under Rocket, and longtime Mr. Cooper chief Jay Bray is now president and CEO of Rocket Mortgage reporting to Varun Krishna.
  • Federal Housing Finance Agency approval came with a 20% cap on the combined company’s Fannie Mae and Freddie Mac servicing exposure.
  • The all-stock deal’s value rose to $14.2 billion from the $9.4 billion announced in March as share prices climbed over the past six months.
  • Together the companies will serve nearly 10 million homeowners, with $1.27 trillion in owned mortgage servicing rights at the end of Q2, and Q2 servicing balances of $1.5 trillion at Mr. Cooper and $609 billion at Rocket.
  • The transaction closed Oct. 1 after Nationstar note exchanges and tender offers concluded Sept. 30, following board approvals and Mr. Cooper stockholder consent.