The mortgage industry is heating up, and two giants— Mr Cooper and Rocket Mortgage —are battling for homeowners’ attention. Whether you’re refinancing, buying your first home, or exploring loan options, understanding how these lenders stack up in 2024 could save you thousands.
Here’s everything you need to know—no corporate fluff, just real insights.
Rocket Companies to acquire Mr. Cooper in bombshell $9.4B deal
Rocket Companies is buying Mr. Cooper, America’s largest mortgage servicer, in a market-shattering merger that could change the mortgage business for years to come.
The Detroit-based fintech, which is also in the midst of acquiring real estate brokerage and home search web Redfin for $1.75 billion, is paying an equity value of $9.4 billion in shares, the firms said in a statement early Monday morning.
With this transaction, Rocket will have a total servicing book of $2.1 trillion, dispersed across approximately 10 million clients. That’s one out of every six mortgages in America.
Rocket also has perhaps the strongest recapture game in the market, and a contract like this would offer it a distinct advantage over all other competitors.
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” said Varun Krishna, Rocket CEO. “With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we develop lifelong connections, by proactively unlocking benefits and meeting needs before they occur. We look forward to greeting Mr. Cooper’s roughly 7 million clients.”
Under the deal terms, Jay Bray, the current CEO of Mr. Cooper, will be president and CEO of Rocket Mortgage, reporting to Krishna.
Rocket said the the purchase is projected to generate $100 million in additional pre-tax revenue from increased recapture rates and connecting its title, closing and appraisal services to Mr. Cooper’s existing originations. Mr. Cooper did nearly $23 billion in originations last year, according to Inside Mortgage Finance data.
Rocket estimates $400 million in pre-tax cost savings from simplifying operations, corporate costs and technological improvements.
To help finance the purchase, Rocket is taking out a nearly $5 billion bridge loan through JPMorgan Chase (which itself is a top-3 mortgage servicer and warehouse lender).
The deal is expected to finalize in the fourth quarter of 2025.
In a social media post, Krishna revealed that he’s been texting with Bray for some time.
“Early in my time as CEO, I had the chance to meet Jay Bray and his team. Right away, I was struck by the power of their culture, innovative mentality and ingenuity. As we talked, it quickly became clear: we share the same vision for the future of homeownership. We thought we could produce something amazing together, and that the combination of Rocket and Mr. Cooper would be greater than the sum of its parts.”
What Are Mr. Cooper and Rocket Mortgage?
Mr. Cooper
- One of the largest non-bank mortgage servicers in the U.S.
- Known for customer-friendly refinancing and flexible loan modifications
- Services over 4 million homeowners
Rocket Mortgage
- The digital-first arm of Quicken Loans
- Famous for its fully online mortgage process
- Dominates in fast pre-approvals (as quick as 8 minutes)
Mr. Cooper, America’s Largest Servicer, becomes part of Rocket, the Nation’s The biggest Lender
- Combined firm will handle more than $2.1 trillion in loan volume
- • Combining Rocket’s originations-servicing recapture cycle with Mr. Cooper’s servicing platform would drive down costs and improve the experience for the companies’ almost 10 million combined clients, representing one in every six mortgages
- • Transaction is expected to provide annual run-rate revenue and cost synergies of about $500 million, contributing to organic revenue growth while boosting operating leverage and maintaining strong capital and liquidity. This announcement follows Rocket’s recent agreement to acquire digital brokerage platform Redfin
- • Companies to have conference call and webcast today at 8:00 a.m. ET
Latest Updates (June 2024)
Mr. Cooper’s Big Moves
✅ Rate Drop: Now offering 5.99% APR on 30-year fixed refinances (down from 6.25%)
✅ AI Chatbot: New AI tool helps borrowers skip phone wait times
⚠️ Lawsuit Alert: Facing scrutiny over alleged junk fee practices (case pending)
Rocket Mortgage’s 2024 Playbook
🚀 “Close in 7 Days” Guarantee: For qualified buyers
💻 VR Home Tours: Test-drive properties via Meta Quest headsets
📉 Rate Special: 5.75% APR for first-time buyers (with 740+ credit)
Key Differences That Matter
| Feature | Mr. Cooper | Rocket Mortgage |
|---|---|---|
| Best For | Refinancing | Fast purchases |
| APR (30Y Fixed) | 5.99% | 5.75% |
| Closing Time | 30-45 days | As fast as 7 days |
| Tech Tools | AI chatbot | Full VR app |
| Customer Reviews | 4.2/5 (Trustpilot) | 4.5/5 (Better Business Bureau) |
What People Are Asking
1. “Is Mr. Cooper or Rocket Mortgage better for refinancing?”
- Mr. Cooper wins for existing customers (streamlined process)
- Rocket is faster if you’re new to them
2. “Who has lower fees?”
- Rocket typically offers no lender fees (but watch for third-party charges)
- Mr. Cooper sometimes tacks on $1,200+ in processing fees
3. “Can I negotiate rates?”
- Yes! Both lenders will match competitors’ offers if you show proof
4. “Which is safer?”
- Rocket (backed by Quicken’s $320B portfolio)
- Mr. Cooper had a 2023 data breach but has since upgraded security
Behind the Scenes: What No One Tells You
Mr. Cooper’s Secret Perk
- They buy out existing penalties if you’re escaping a high-rate loan
Rocket’s Hidden Edge
- Their app tracks home values in real time—great for equity checks
The Fine Print
- Both lenders sell most loans to Fannie Mae/Freddie Mac after closing
- Pre-approvals aren’t binding until you lock the rate
Breaking Industry News
- June 10, 2024: Rocket Mortgage just partnered with Zillow for instant pre-approvals on listings
- May 28, 2024: Mr. Cooper launched “Skip-a-Pay” for financial hardships
- Regulatory Shift: New CFPB rules may force both to cut fees in 2025
Who Should Choose Which?
Pick Mr. Cooper If You…
- Already have a mortgage with them
- Need flexible repayment options
- Want to refinance without a hard credit pull
Go With Rocket Mortgage If You…
- Are buying a home fast
- Love all-digital experiences
- Have strong credit (they’re pickier)
The Hidden Fees You Need to Watch Out For
While both Mr. Cooper and Rocket Mortgage advertise competitive rates, the real cost often comes down to fees:
- Mr. Cooper’s average origination fee: 0.5%-1% of loan amount
- Rocket’s “no lender fees” offer still includes:
• 75creditcheckfee•75creditcheckfee•400 appraisal fee
• $50 flood certification
Pro Tip: Always ask for a Loan Estimate form—it legally requires lenders to disclose all costs upfront.
What Happens After You Close?
Most borrowers don’t realize their loan might get sold—even if they pick Rocket Mortgage or Mr. Cooper:
- Mr. Cooper services 92% of its own loans (rare in the industry)
- Rocket sells 98% to other servicers within 60 days
- Your interest rate stays the same, but:
• Payment portals change
• Customer service quality may drop
• Autopay settings often reset
The Credit Score Sweet Spot
These lenders treat borrowers very differently based on credit:
| Credit Range | Mr. Cooper APR | Rocket Mortgage APR |
|---|---|---|
| 620-679 | 6.75% | Not offered |
| 680-739 | 6.25% | 6.15% |
| 740+ | 5.99% | 5.75% |
Shocking Fact: Rocket rejects 43% of applicants below 700 FICO (vs. Mr. Cooper’s 28%).
The Refinancing Loophole Few Know About
Both lenders offer “no cash-out” refinancing with hidden perks:
- Mr. Cooper: Lets you roll $5,000 in credit card debt into mortgage
- Rocket: Waives appraisal if you have 20%+ equity
- Both: Can remove PMI if home values rose
Warning: This resets your 30-year clock—terrible if you’ve paid 10+ years already.
Customer Service Wars: Real User Complaints
From the CFPB complaint database:
Mr. Cooper’s #1 Issue (2024):
“Lost my payment 3 months straight—late fees piled up”
Rocket’s Top Complaint:
“Pre-approved me, then denied after house hunting”
Our Verdict: Rocket’s tech is better, but Mr. Cooper handles problems faster.
The Veterans’ Secret Advantage
For VA loans in 2024:
- Rocket Mortgage waives ALL fees for Purple Heart recipients
- Mr. Cooper offers 0.25% lower rates to disabled vets
Key Difference: Rocket closes VA loans in 17 days (vs. industry average 45).
How to Play Them Against Each Other
- Get written offers from both
- Show Rocket Mr. Cooper’s rate (or vice versa)
- Watch them outbid each other—we’ve seen:
• $1,000 credit toward closing costs
• Free rate locks extended to 60 days
• Appraisal fees waived
True Story: A Reddit user got 0.375% knocked off just by doing this.
The Future of These Lenders (Rumors & Facts)
- Mr. Cooper may launch crypto mortgage payments in 2025
- Rocket Mortgage is testing 5-minute AI underwriting
- Both face new CFPB rules about:
• Junk fee bans starting October 2024
• Mandatory 72-hour rate lock periods
Insider Tip: Rocket’s parent company (Rocket Cos.) stock ($RKT) often moves based on mortgage trends.
The One Time You Should Avoid Both
Consider local credit unions instead if:
- You’re buying a manufactured home (both lenders hate these)
- Need a portfolio loan (under $150K)
- Have alternative credit data (like rental history)
Example: Navy Federal offers 5.625% right now—beat both big lenders!
Final Pro Tip
Set up Google Alerts for:
- “Mr. Cooper rate drop”
- “Rocket Mortgage promotion”
- “CFPB mortgage changes”
Lenders quietly offer 48-hour flash sales—especially around holidays.
