Analyzing the current Rocket Mortgage and Redfin deal, what are five more deals that would make sense in the mortgage and housing sector in 25 and why, an M. Allen take.

Based on analysis of the Rocket Companies' acquisition of Redfin, which aims to create a comprehensive homebuying ecosystem by integrating Redfin's real estate search platform with Rocket's mortgage services, several strategic deals in the mortgage and housing sector could make sense in 2025. These potential acquisitions or partnerships would align with current market trends, including industry consolidation, the integration of technology and data analytics, and the need to address affordability and transaction downturn challenges. Below are five plausible deals, along with the rationale for each:

1. Rocket Companies Acquires Zillow
- Rationale: Zillow, a dominant player in real estate listings and data, has been expanding its "Super App" ambitions to offer a one-stop platform for homebuying, selling, and financing. Acquiring Zillow would further solidify Rocket's position as a top player in the mortgage space and enhance its ecosystem with Zillow's massive user base (over 200 million monthly unique users) and proprietary data. This move would allow Rocket to directly challenge competitors like United Wholesale Mortgage and leverage Zillow's AI-driven tools to optimize mortgage and real estate services, especially in a market recovering from the 2022 mortgage rate shock and transaction downturn.

2. United Wholesale Mortgage (UWM) Merges with Opendoor
- Rationale: UWM, the largest wholesale mortgage lender, could benefit from merging with Opendoor, a leading iBuying platform that purchases homes directly from sellers. This deal would combine UWM's mortgage expertise with Opendoor's innovative home-buying model, addressing the affordability crisis by streamlining transactions. The merger could help UWM capture a larger share of the purchase loan market (potentially exceeding Rocket's projected 1 in 6 loans) and mitigate risks from the prolonged housing downturn, as seen with Redfin's struggles. Opendoor's technology could also enhance UWM's digital mortgage offerings.

3. Quicken Loans (Rocket Subsidiary) Partners with Realtor.com
- Rationale: A strategic partnership or acquisition of Realtor.com, operated by Move Inc., would complement Rocket's existing Redfin integration by adding another major real estate listings platform. With Realtor.com's 70 million monthly visitors and strong agent network, this move would expand Rocket's reach to millions of potential homebuyers and leverage its 14+ petabytes of combined data for personalized mortgage and real estate solutions. This aligns with the trend of ecosystem integration and positions Rocket to compete with Zillow's Super App while addressing the transaction downturn through enhanced consumer access.

4. LoanDepot Acquires Better.com
- Rationale: LoanDepot, a growing retail mortgage lender, could acquire Better.com, a digital mortgage lender that has faced challenges but retains a strong online presence and technology platform. This deal would allow LoanDepot to bolster its digital capabilities and recapture market share lost during the 2022 mortgage rate spike. Better.com's direct-to-consumer (D2C) model, similar to Redfin's organic customer acquisition, could be revitalized under LoanDepot's financial stability, enabling it to challenge Rocket's growth trajectory (8% year-over-year increase in 2024) and compete in the evolving housing market.

5. Fannie Mae or Freddie Mac Acquires CoreLogic
- Rationale: Fannie Mae or Freddie Mac, key players in the secondary mortgage market, could acquire CoreLogic, a leading provider of property data and analytics with vast datasets on housing trends. This acquisition would enhance their ability to assess risk and offer innovative mortgage products amid fluctuating rates (e.g., the recent jump to 7.0%) and an expanding refinance pool (from 1 million to 4 million borrowers). With 14+ petabytes of data combined, this move would support industry consolidation, provide unprecedented consumer insights, and strengthen their position against private competitors like Rocket, especially as the housing market navigates affordability crises and potential conservatorship changes.

Supporting Context
These deals align with the strategic implications observed in the Rocket-Redfin acquisition, such as market share growth, ecosystem integration, and leveraging AI/data advantages. The housing market challenges—mortgage rate shocks, affordability crises, and transaction downturns—underscore the need for companies to consolidate resources and innovate, as evidenced by Redfin's layoffs (over 1,000 employees since 2022) and Rocket's focus on capturing 1 in 6 purchase loans. Additionally, the unemployment context from March 5, 2025, suggests varying economic conditions across states, making diversified and data-driven strategies critical for success in 2025.

Let’s see what happens and your thoughts on M&A this year?