A continued constriction of the mortgage market may worry brokers
Rocket’s announcement of its acquisition of Mr. Cooper came before the ink was dry on its agreement to purchase Redfin in an all-stock deal for $1.75 billion earlier in March.
That move was hailed as an effort to create a “super app” for housing, similar to what had previously been attempted by Redfin and Zillow.
While a continued consolidation of the mortgage market might worry some mortgage brokers, Gehrke said it might not be a problem, yet.
“I’d say ‘worry’ is a bit of a strong word for this,” Gehrke said. “(Rocket) does well at scale. Talking to some loan originators, a lot of the better-qualified buyers can go, not just to Rocket, but to Bank of America and Chase, where they may have broader financial relationships.”
Rocket Companies has inked a blockbuster deal to purchase Mr. Cooper, the largest mortgage servicer in the US, in a move the company said would combine a servicing book of more than $2 trillion.https://t.co/ecIqmso3J8
— Mortgage Professional America Magazine (@MPAMagazineUS) March 31, 2025
Gehrke believes that smaller brokers may need to rely on companies like United Wholesale Mortgage (UWM) to provide products, services, and technology in order to keep up with companies like Rocket.