Our M. Allen Blog

Our latest thought leadership and insights with key strategies to win in a challenging market.

What If? Five More Big M&A This Year! – A Follow-Up

Matt Slonaker
March 31, 2025

Just weeks after analyzing the Rocket Companies’ acquisition of Redfin in our March 11th blog post, today’s news of Rocket acquiring Mr. Cooper Group Inc. in an all-stock deal valued at $9.4 billion has sent shockwaves through the mortgage and housing sector. This move, creating a mortgage giant handling one in every six U.S. mortgages, reinforces the consolidation trend we predicted and amplifies Rocket’s ambition to dominate the homebuying ecosystem. With Rocket’s buying spree in full swing—first Redfin and now Mr. Cooper—what other deals might lie ahead in 2025? Below, we revisit our original five predictions, adjust based on today’s news, and explore fresh possibilities for strategic mergers and acquisitions in this rapidly evolving market.

Revisiting and Updating the Original Five

1. Rocket Companies Acquires Zillow
• Updated Rationale: With Mr. Cooper’s servicing portfolio (over $1 trillion in unpaid principal balance) now under Rocket’s umbrella, acquiring Zillow becomes even more compelling. Zillow’s real estate listings and data powerhouse could integrate seamlessly with Mr. Cooper’s servicing expertise and Rocket’s origination strength, creating an unmatched end-to-end platform. This deal would counter UWM’s wholesale dominance and leverage Zillow’s 200 million monthly users to drive Rocket’s projected market share beyond its current 16% of U.S. mortgages. The urgency for this move heightens as Rocket doubles down on ecosystem integration.
2. United Wholesale Mortgage (UWM) Merges with Opendoor
• Rationale Holds Strong: UWM remains a prime candidate to merge with Opendoor, especially as Rocket’s Mr. Cooper acquisition intensifies competition. Combining UWM’s wholesale lending prowess with Opendoor’s iBuying platform could create a formidable counterweight to Rocket’s growing empire. This deal would streamline homebuying and financing, targeting affordability challenges and capturing purchase loan volume in a market where Rocket now leads. Opendoor’s tech could also modernize UWM’s offerings, critical in a consolidating industry.
3. Quicken Loans (Rocket Subsidiary) Partners with Realtor.com
• Adjusted Outlook: With Redfin already in Rocket’s fold and Mr. Cooper enhancing its servicing scale, a partnership or acquisition of Realtor.com could further expand Rocket’s consumer reach. Realtor.com’s 70 million monthly visitors and agent network would complement Mr. Cooper’s servicing capabilities, allowing Rocket to cross-sell mortgage products to a broader audience. This move aligns with Rocket’s aggressive growth strategy and could mitigate risks from a prolonged transaction downturn.
4. LoanDepot Acquires Better.com
• Rationale Reinforced: LoanDepot’s potential acquisition of Better.com gains traction as Rocket’s consolidation spree (Redfin and Mr. Cooper) pressures mid-tier lenders to scale up. Better.com’s digital-first model, despite past struggles, could bolster LoanDepot’s tech capabilities, enabling it to compete with Rocket’s 8% year-over-year growth in 2024. This deal would capitalize on Better’s D2C strengths, offering LoanDepot a lifeline to regain market share in a crowded field.
5. Fannie Mae or Freddie Mac Acquires CoreLogic
• Rationale Enhanced: The Rocket-Mr. Cooper deal underscores the value of data and scale in navigating housing market volatility (e.g., 7.0% mortgage rates and a 4 million borrower refinance pool). Acquiring CoreLogic would empower Fannie Mae or Freddie Mac with unparalleled property data, strengthening risk assessment and product innovation. This move could counterbalance Rocket’s private-sector dominance and support stability in the secondary mortgage market amid economic shifts.

Fresh Possibilities Post-Rocket/Mr. Cooper

6. Pennymac Acquires Guild Mortgage
• Rationale: Pennymac, a top non-bank lender, could acquire Guild Mortgage to bolster its retail and correspondent lending channels. Guild’s strong purchase loan focus and regional presence would complement Pennymac’s servicing portfolio (over $500 billion), creating a diversified player to challenge Rocket’s expanded reach. This deal would address affordability pressures by enhancing loan origination options in a market still reeling from rate hikes.
7. Mr. Cooper (Now Rocket) Acquires Black Knight
• Rationale: With Mr. Cooper now part of Rocket, acquiring Black Knight—a leader in mortgage technology and data solutions—could supercharge Rocket’s operational efficiency. Black Knight’s platforms (e.g., MSP servicing software) would integrate with Mr. Cooper’s trillion-dollar portfolio, enhancing servicing capabilities and leveraging Rocket’s 14+ petabytes of data. This move would solidify Rocket’s tech-driven dominance and counter competitors like ICE, which acquired Black Knight in 2023 but could face divestiture pressures.

Supporting Context

The Rocket-Mr. Cooper deal, announced on March 31, 2025, aligns with posts on X highlighting Rocket’s aggressive acquisition strategy and the stunning consolidation expected in the mortgage industry this year. The housing market’s challenges—rate shocks, affordability crises, and a transaction slowdown—continue to drive companies toward scale and innovation. Rocket’s trajectory (Redfin for real estate access, Mr. Cooper for servicing muscle) mirrors our earlier predictions, amplifying the need for competitors to respond with their own M&A plays. Economic indicators, like varying unemployment rates across states, further emphasize the importance of diversified, data-driven strategies.

What are your thoughts on these potential deals? Will Rocket’s spree trigger a wave of counter-moves, or will the industry consolidate even further under a few giants? Let’s keep the conversation going as 2025 unfolds!