FHFA allowed Fannie Mae and Freddie Mac to approve Rocket Companies' acquisition of Mr. Cooper provided the combined counterparty exposure does not exceed a 20% limit for each GSE. FHFA staff recommended strict 20% concentration caps and additional financial and operational safeguards to protect the GSEs and the housing market. The acquisition would create a $2.1 trillion servicing portfolio covering nearly 10 million customers, about one in six U.S. mortgages. Mr. Cooper's $1.5 trillion servicing book comprised 10.4% of the top 25 servicers in Q2 2025; Rocket's $616.7 billion represented 4.25%. Rocket originated $46.8 billion in H1 2025 and reported a $34 million profit in Q2, with executives expecting to close the deal in Q4 2025.
The Federal Housing Finance Agency (FHFA) said Tuesday it has allowed Fannie Mae and Freddie Mac to approve Rocket Companies' planned acquisition of Mr. Cooper Group, noting the combined company should not exceed a 20% counterparty risk limit set for the government-sponsored enterprises (GSEs). Detroit-based Rocket announced in March that it would acquire Mr. Cooper the nation's largest mortgage servicer in an all-stock deal valued at $9.4 billion. At the same time, Rocket was also pursuing a $1.75 billion acquisition of real estate brokerage and home search platform Redfin.
FHFA staff reviewed the merger of two of the Enterprises' largest individual seller-servicer counterparties and recommended that Fannie and Freddie each maintain strict 20% concentration caps, along with other financial and operational safeguards to protect the GSEs and the broader housing market. No market participant should have greater than 20% of Fannie or Freddie's servicing market in order to ensure the safety and soundness of the mortgage market and the overall economy, the statement reads.
The deal would give Rocket a $2.1 trillion servicing portfolio across nearly 10 million customers roughly one in six U.S. mortgages. As of the second quarter of 2025, Mr. Cooper's $1.5 trillion servicing book represented 10.4% of the top 25 largest servicers, while Rocket's $616.7 billion portfolio accounted for 4.25%, according to Inside Mortgage Finance. Rocket is also the nation's third-largest mortgage lender, with $46.8 billion in originations in the first half of 2025 (5.5% market share). Mr. Cooper ranked 10th with $17.7 billion in volume and a 2.1% share.
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