Last month, Rocket Companies, the nation’s second-largest mortgage originator, announced that it is making two major purchases, of real estate giant Redfin and Mr. Cooper—the latter the country’s second-largest collector of mortgage payments—in a series of transactions valuing nearly $11 billion total. The home buying and mortgage market has been struggling: According to National Mortgage News, 2025 forecasts for total mortgage production this year fall below pandemic lows; “the change in interest rates from 2020 to 2024 has seen the residential mortgage ecosystem careen from feast to famine,” NMN explains. In this environment, these acquisition shakeups could reshape the consumer experience as realtor and broker may merge into a one-stop home-buying shop.
Over at Redfin, the 2022 interest rate spike caused what ResiClub called “a continuous wave of layoffs,” alongside major losses that have continued through this year. Yet Redfin’s assets, as detailed by Rocket Companies CEO Varun Krishna, include “nearly 50 million monthly visitors, one million active purchase and rental listings and staff of 2,200+ real estate agents across 42 states.” This could drive new mortgage originations, especially as the National Association of Realtors reported that home sales ticked up by more than four percent earlier this year.
As interest rates declined in 2024 and potential home buyers moderately resumed their searches, there’s an advantage in bringing consumers straight to a lender to make their purchase. But it’s not just new loans that Rocket is looking for—according to Axios, the purchase of Mr. Cooper is about maximizing its returning customers, referred to as “recapture rates.” Higher interest rates have meant fewer refinancing opportunities; merging Rocket and Mr. Cooper could retain borrowers as loans are paid off or as homeowners look to refinance if interest rates are cut. It’s a smart move on Rocket’s part to consider not just new home buyers but longer-term outlooks.
The Redfin purchase represents a savvy business approach that ResiClub states “could see [Rocket Companies’s] market share quadruple.” But for the consumer, it’s less clear how it might impact the home-buying process. In car buying, companies like Carvana have managed to integrate shopping, financing, loan approvals, and delivery into one experience—all managed from a smartphone. But buying a house is far more complex.
A Rocket Company representative couldn’t detail any changes to the website experience at this time. However, in a March 10th investor call, Brian Brown, CFO of Rocket Companies, remarked on this complexity, stating: “The traditional purchase process is fragmented and requires interacting with many entities along the journey—home search, buyer agents, listing agents, a mortgage originator, a title and closing provider, and a servicer. Each stop adds layers of transaction costs, stress, and friction.” For decades, realtors have acted to smooth the frictive process—their relationships with trusted mortgage brokers and real estate attorneys address some of the logistical bumps, especially for those unfamiliar with the process.
Perusing Reddit, users express frustration and confusion over using Rocket Companies for home mortgages, including required annual income and credit score checks, as well as questionable refinancing offers. One user bemoaned the mortgage prequalification process, which they say was supposed to be “as good as having a check in hand,” yet they describe having to update and revalidate various tax and income documents two weeks prior to closing. As others countered, this is a normal part of the approvals process.
“[The] difference between Rocket Mortgage and a good, local mortgage lender is that we’re gonna remind you about those updated docs we need before the very last minute and keep you in the fold,” writes another user, who claims they work at a mortgage lender. “We don’t just assume you’re mortgage experts that know exactly what we need all the time, and we take the time to explain the process to you so that you’re as comfortable with it as possible during this scary, high-stress, important time in your life.”
For newer buyers using the platform, knowledgeable Redfin agents and financial advisors are still necessary players in the home-buying marketplace; the Great Recession taught us a lesson about the importance of well-informed mortgage consumers and non-predatory lenders. But National Mortgage News reports that Rocket’s acquisitions represent that a vertically integrated model is possible. “A growing portion of the mortgage finance market believes that realtors and loan officers are going to merge functions over time,” reads the story. While we’re a long way off from a “swipe to buy” function, these deals could signal a more consolidated real estate environment—hopefully not at the expense of the consumer.
Top photo by Seth Joel/Getty Images
