In recent weeks, executives at Rocket Companies have seen the dismissal of a Consumer Financial Protection Bureau lawsuit, growth in an ongoing rebranding campaign and strong fourth quarter earnings results.
Now, a
The purchase of the Seattle-based Redfin is expected to close by the end of the third quarter, granting Rocket a suite of products and services around mortgages, real estate, title, closing and the personal finance application.
But experts like Greg Schwartz, chief executive of Tomo and former Zillow executive, say bundled experience won't eliminate the traditional shopping process of individual providers for each service.
Schwartz told National Mortgage News that "folks will continue to come to us if they want to save a few bucks a month," while bundled offerings like Rocket's could drive up homebuying costs primarily because there is "much more marketing spend behind these organizations."
Representatives with Rocket outlined in a press release that those seeking to purchase a median-priced home, which it placed at around $430,000, would
Estimates contained in the release said client costs for such a property amount to roughly $40,000, which include $24,000 in fees for the listing and buyer's agents, $1,000 for title premiums and $15,000 for mortgage gains on the sale. The joining of Rocket and Redfin would purportedly cut that figure in half.
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Rocket has also gained ground in the regulatory arena.
In late February, the CFPB announced that it
"It was an empty claim brought forth by former CFPB director Chopra for the sole purpose of seeing his name in headlines during the final days in public office," Rocket Homes said in a statement. The decisions are part of a larger wave at the agency halting regulatory enforcement actions under the new Trump Administration and Acting CFPB Director Russell Vought.
Also noteworthy are decisions to shutter the company's Canadian mortgage subsidiary, Rocket Mortgage Canada, and the launch of its new financial assistance program known as "RocketRentRewards."
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Below is a recap of the recent news from Rocket Companies and what mortgage leaders need to be aware of.

What does Rocket's deal for Redfin mean for homebuyers?
Rocket Companies' $1.75 billion play to acquire Redfin will undoubtedly have a big impact on the homebuying industry, with possible ripple effects in how consumers approach the shopping process and preferences for an all-in-one versus individual provider experience.
Industry experts that weighed in on the news said the possible joining of Rocket and Redfin could divide the market into distinct segments that prefer providers for each step of the homebuying process and those who opt for a bundled service — but bundles could mean higher consumer costs.
"Rocket now has mortgage, real estate, title, closing and the personal finance application, and I wouldn't be surprised if they launch their own insurance business…both companies are insourcing stuff," Greg Schwartz, chief executive of Tomo and former Zillow executive, told National Mortgage News.
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AI adoption results in staff cuts at Rocket Companies
Rocket Companies touted a
The company's annual filings with the Securities and Exchange Commission for 2024 showed that headcount was down to 14,200 across U.S.- and Canada-based operations at the end of the year, which executives say is in part due to the increased use of AI tools. Rocket Companies CEO
"Head count was down a bit year-over-year," Brian Brown, Rocket's chief financial officer, said during the earnings call. "And really…[that] is the power of AI at work."
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Rocket shutters Canadian mortgage operations
Following Rocket Companies' plan to focus solely on the U.S. housing market as part of lending strategy changes, the company announced this month that it will close its Canadian mortgage line of business.
Rocket's entrance into the Canadian market was made possible through a 2020 investment in mortgage brokerage Edison Financial. The company later took on the name
"While this means stepping away from our lending business in Canada, we thank our team members who have helped us expand over the last five years," Rocket Mortgage Canada said in a statement. "Their hard work and passion have helped thousands of Canadians achieve the dream of homeownership and we appreciate all their contributions,"
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Rocket sees wins with CFPB case dismissal, Q4 earnings and rebranding
Between the dismissal of a case from the Consumer Financial Protection Bureau and positive $649 million net income performance for the fourth quarter of last year, things are looking up for Rocket Companies.
Despite the top originator spot being held by United Wholesale Mortgage and its
The $649 million in net income for Q4 was a big departure from the $233 million net loss reported in the year ago period, and is more than the company made in its
"Over the past year, we kick-started this journey by executing a strategic evolution, realigning our resources and sharpening our focus on home ownership," Varun Krishna, Rocket Cos. CEO, said during an earnings call.
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New Rocket Mortgage program offers closing cost credits to renters
Rocket Mortgage's "RocketRentRewards" program will offer financial assistance to renters with 12 months of payments history.
Mortgage applicants that can verify the past year or so of their monthly payments are eligible to receive 10% back on their last year of rent payments for closing costs up to $5,000. The credits are also applicable for lowering their interest rate using discount points, according to Bill Banfield, Rocket's chief business officer and economist.
"We think it's a good opportunity to bridge the gap for folks that might think it's either too expensive or are renting for flexibility and would rather have a home to call home," Banfield told National Mortgage News.
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